The Average Life Insurance Costs Per Month: An Informative Guide

The results of a recent study showed that 84 percent of Americans think that most people ought to have life insurance. There's a big disparity between what people say and what they do, though. A mere 59 percent of respondents said they have some kind of life insurance policy.

Are you part of this group, or are you late to the game when it comes to insuring yourself? If the latter is true, there's no time like the present to get informed and get covered. Read on to learn more about the basics, including the factors that influence the average life insurance costs per month.

Types of Life Insurance

Before we dive into everyone's favorite topic, the cost of life insurance, let's first clarify all the different types of coverage that are available to you. The following are some of the most common types of life insurance you might want to consider purchasing:

• Term Life Insurance: This policy lasts for a set number of years; if you die before the term ends, a certain amount of money (a death benefit) gets paid to your beneficiaries 

• Whole Life Insurance: This option lasts for your whole life, as the name suggests; it does not expire and includes a death benefit and a cash value, which is a type of tax-deferred savings account 

• Universal Life Insurance: This is similar to whole life insurance, but you have the option to change the premium and death benefit amount without getting a whole new policy

• Variable Life Insurance: This option also comes with a cash value, but the money goes into a series of sub-accounts (similar to mutual funds) so you can grow your wealth faster (while also being more susceptible to dips in the market)

Of these policies, term life insurance is the most affordable option. It doesn't come with as many perks, though, and you'll have to buy another policy if you outlive the term of the first one you purchased. For some people, it's better to spend more on a different policy and enjoy the potential wealth-building aspects of it.

What Are the Average Life Insurance Costs Per Month?

The cost of life insurance can vary quite a bit from policy to policy. It's hard to know exactly how much you'll pay per month without first talking to an insurance agent.

Most people pay less than $100 per month for life insurance, though. Some policies can even cost less than $20 per month. 

To find out if your premium will be on the low or high end of that spectrum, there are a lot of factors to take into account. The following have the greatest impact on the cost of your insurance coverage:

Age

The younger you are, the less you'll have to pay for life insurance. This is because there's less of a chance that the insurer will have to pay out your policy (especially if you choose a term option).

Gender

Women, in general, tend to live longer than men. Because of this, it's common for women to pay less for life insurance.

Health History

Your health history plays a big role in your insurance premiums, too. If you are in good health and take care of your body, you can often receive a discount on coverage.

Family Health History

It's not just about your health, though. The history of your family's health matters, too. If conditions like cancer or diabetes run in your family, for example, you may end up paying higher premiums.

Lifestyle

Insurance companies factor in your lifestyle as well. If you engage in risky behaviors like smoking or are overweight, your premium will be higher than that of someone who lives a more health-focused life. The same is true if you work a job that's considered risky, such as one that involves toxic chemicals.

How to Save Money on Life Insurance

With so many different life insurance options out there, it's easier than you might think to find one that fits your budget. If money is very tight, though, or if you're dealing with some of the factors listed above that can make insurance more expensive, you might be wondering if there's anything you can do to make your premiums more affordable.

In short, there is. The following are some of the best steps you can take to save money on life insurance:

Choose Term Insurance

If you want some coverage but want to pay as little as possible for it, term life insurance is almost always going to be your best bet. It gives you peace of mind knowing that some of your beneficiaries are taken care of, but you don't have to worry about breaking the bank to pay for it.

Buy Early

Remember, young people almost always pay less for health insurance. To save money, invest in an insurance policy as early as possible.

Get Multiple Quotes

Don't settle for the first policy option presented to you. Get quotes from several different insurance companies and compare them side by side before you make a decision.

Be Transparent

Some people try to secure a lower premium by failing to disclose certain health conditions. You'll almost always get found out if you try to hide the facts, though, and this could affect your insurability. It's better to be transparent from the start. 

Improve Your Lifestyle

If you know that aspects of your life make you less insurable than other people your age, make an effort to improve your lifestyle. Quit smoking, lose some weight, and adopt more healthy behaviors. 

Pay by the Year

Finally, consider paying by the year instead of the month. Often, you can get a discount when you do this.

Get Life Insurance Today

Now that you know more about life insurance, from the different types you can purchase to the average life insurance costs per month, it's time to take action. Keep this information in mind as you begin shopping around for the perfect policy, and you'll have an easier time getting the coverage you need without spending an arm and a leg.

Do you want to learn more about life insurance or other types of coverage for your family? If so, we have plenty of resources available on our site. Check them out today!