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When making any big life decision, it’s helpful to assess both the costs and the benefits. Life insurance is one of those decisions that can greatly impact you and your loved ones’ lives. Figuring out how much life insurance is and how it can benefit you are the first questions you’ll need to get answered. Here’s how much life insurance costs, average costs for term and whole life plans, and factors that can affect the cost.
Using our life insurance calculator may help you determine how much life insurance you need and can help you forecast your potential life insurance cost per month, also known as premium payments.
Life insurance is a contract between the policyholder and the life insurance company that can help financially support your loved ones. In exchange for paying premiums, the insurer will provide a payout to your beneficiaries if you pass away while the policy is active.1
The average life insurance cost varies greatly depending on the type of plan you own. Term life insurance is a life insurance plan that you pay into for a fixed period of time, like 10, 20, or 30 years. These plans are often less expensive than their alternative. However, your beneficiary only receives the payout (or death benefit) if you pass within the specified term.2 Alternatively, whole life insurance is typically more expensive, but the beneficiary will receive the death benefit regardless of when you pass — hence the name, whole life.3
The average cost of life insurance per month is $26.4 How much you’ll pay monthly for life insurance can depend on what you’re looking for in a plan, so we don’t recommend using this number as the ultimate baseline.
Each life insurance company will assess how much of a risk you are based on your lifestyle, and the price of life insurance will reflect this. Since how old you are can help insurance companies better understand the risk, you may want to explore how life insurance rates by age can change.
Term life insurance costs are mainly influenced by the age of the policyholder, their gender, and how long the specified term is. The specific costs depend on the insurance company you choose, but a few factors can help you understand potential term life insurance costs.
In general, term life insurance is more expensive the older you are. Additionally, term life insurance is more expensive for men than women because men tend to have shorter life expectancies.4
On the other hand, term life insurance is less expensive when the term length is shorter. So, a 10-year term life plan would typically be less expensive than a 30-year term life plan. Lastly, the face value, or the amount of money you choose to have paid to your beneficiary, impacts the life insurance cost.5 Typically, you will choose the term length and face value upfront, when your term life insurance plan is being created.
Don’t wait until it’s too late. Help cover yourself and your family with coverage from Aflac.
In a whole life insurance plan, the term length is non-existent, so the length of the plan won’t change the cost of this permanent life insurance. However, the same influences of age and gender also apply to whole life insurance costs.
Some whole life insurance plans allow you to decide how you want to pay premiums. You can pay it all upfront, or over 10, 20, or 25 years. The payment structure you choose can impact overall costs and benefits of your life insurance plan.
The whole life insurance plan must be fully paid for in full for the beneficiary to be able to access all the benefits. We recommend chatting with an insurance agent to determine how beneficiaries can complete the plan’s payments if needed. Additionally, the overarching face value of your plan will impact the total life insurance cost.6
Here are some factors that impact how much you’ll pay for a life insurance policy:
Life insurance companies won’t use your ethnicity or religious preference to determine costs. Instead, they only look at factors that impact the risks within your life. Also, credit life insurance is the only life insurance that may need your credit score to determine eligibility and costs.
Here are some ways you can pay less in premiums for a life insurance policy:
The amount of life insurance you need depends on factors such as your debts, income, number of dependents, and how long you want to be covered. For instance, you should get a policy worth 10 times your income if you want your loved ones to replace your income for that many years after your passing. Or, if you have a mortgage or other long-term debts, you should get a coverage amount that would help loved ones be able to pay these debts off if you unexpectedly pass away.
Depending on your unique needs and goals, Aflac offers both Term and Whole life insurance plans, depending on your unique needs and goals. Speaking to an agent can help clarify what your life insurance costs could be like.
Get a quote today to see how an Aflac life insurance plan could fit into your budget. Understanding potential life insurance monthly costs can help you plan for the future better.
1 Investopedia - Life Insurance What It Is, How It Works, and How To Buy a Policy. Updated February 20, 2024. Accessed February 26, 2024. https://www.investopedia.com/terms/l/lifeinsurance.asp.
2 Investopedia - Term Life Insurance What It Is, Different Types, Pros and Cons. Updated January 11, 2024. Accessed February 26, 2024. https://www.investopedia.com/terms/t/termlife.asp.
3 Investopedia - Whole Life Insurance Definition How It Works, With Examples. Updated September 21, 2023. Accessed February 26, 2024. https://www.investopedia.com/terms/w/wholelife.asp.
4 Nerd Wallet - Average Life Insurance Rates for December 2022 – NerdWallet. Updated February 1, 2024. Accessed February 26, 2024. https://www.nerdwallet.com/article/insurance/average-life-insurance-rates.
5 Value Penguin - Average Cost of Life Insurance by Age, Term & Coverage. Updated Jan 10, 2024. Accessed February 26, 2024. https://www.valuepenguin.com/average-cost-life-insurance.
6 Nerd Wallet - The Cost of Whole Life Insurance, and Why It's So High. Updated August 15, 2022. Accessed February 26, 2024. https://www.nerdwallet.com/article/insurance/cost-of-whole-life-insurance.
Coverage underwritten by American Family Life Assurance Company of Columbus. In New York, coverage is underwritten by American Family Life Assurance Company of New York.
68000: In Arkansas, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies: ICC1368100, ICC1368200, ICC1368300, ICC1368400. In Delaware, Policies A68100-A68400. In New York, NY68100-NY68400. In Virginia, Policies ICC0965JTO & ICC0965JWO. 65000: In VA, Policies ICC0965JTO & ICC0965JWO. B61000: In AR, ID, OK, OR, PA, TX, & VA, Policies: ICC18B61JWO & ICC18B61JTO. In DE, Policies B61JWO, B61JTO. B6000: In AR, ID, OK, PA, TX, & VA, Policies: ICC18B60C10, ICC18B60100, ICC18B60200, ICC18B60300, & ICC18B60400. Q6000 Whole: In AR, DE & OR, Policy Q60100M. In ID Policy Q60100MID. In OK, Policy Q60100MOK. In PA, Policy Q60100MPA. In TX, Policy Q60100MTX. Q6000 Term: In DE, Policies Q60200M. In AR, ID, OK, OR & TX, Policies ICC18Q60200M, ICC18Q60300C, ICC18Q60400C.
Coverage is underwritten by Tier One Insurance Company.
Final Expense: Arkansas, Delaware, Idaho, Oklahoma, Oregon, Pennsylvania, Texas, & Virginia, Policies ICC21-AFLLBL21 and ICC21-AFLRPL21; and Riders ICC21-AFLABR22, ICC21-AFLADB22, and ICC21-AFLCDR22. Tier One Insurance Company is a subsidiary of Aflac Incorporated and is administered by Aetna Life Insurance Company. Tier One Insurance Company is part of the Aflac family of insurers. In California, Tier One Insurance Company does business as Tier One Life Insurance Company (Tier One NAIC 92908).
Receipt of accelerated death benefits may affect eligibility for public assistance programs. Benefits may also be taxable, and are not expected to receive the same favorable tax treatment as other types of accelerated death benefits that may be available.
This is a brief product overview only. Coverage may not be available in all states including but not limited to DE, ID, NJ, NM, NY, or VA. Benefits/premium rates may vary based on plan selected. Optional riders are available at an additional cost. The policy has limitations and exclusions that may affect benefits payable. Refer to the policy for complete details, limitations, and exclusions. For costs and complete details of the coverage, please contact your local Aflac agent.
The content herein is provided for general informational purposes and is not provided as tax, legal, health or financial advice for any person or for any specific situation. Employers, employees and other individuals should contact their own advisers about their situations.
Aflac WWHQ | Tier One Insurance Company | 1932 Wynnton Road | Columbus, GA 31999
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