How much does a $500,000 life insurance policy cost?

Is a $500,000 life insurance policy really necessary? It could be! By adding up all of your survivors’ potential needs, you could need a half-million dollar life insurance policy, or even more.

But how much will this life insurance coverage cost?

The pricing of life insurance takes into account a number of key factors. This can be the case, whether you’re trying to determine the cost of a $50,000 life insurance policy, a $500,000 life insurance policy, or even a $1 million life insurance policy. But the premium for a $500,000 life insurance policy might not be as high as you think.

Life Insurance Premium Pricing Factors

There are several key criteria when it comes to determining the cost of life insurance coverage. The most prevalent of these include your:

  • Age
  • Gender
  • Smoking Status
  • Health Condition
  • Family Health History
  • Driving Record

Age

Your age is one of the major criteria that is considered when you apply for life insurance coverage. That is because life insurance is priced in large part based on average life expectancy. So, the older you are when you apply, the more likely it is that you will be charged a higher premium.

Locking in a policy now, however, can better ensure that you will have life insurance coverage when you need it – regardless of you future health condition. There’s no guarantee of that, however, if you wait too long to purchase a policy.

Gender

Gender is another key factor that insurers consider with regard to the price of life insurance. In this case, given that females typically live longer than males, women are usually charged less for their coverage.

Smoking Status

If you are a smoker, you could be charged twice or even three times more for your life insurance coverage – with all other factors being equal. In fact, because smoking can lead to a number of adverse health conditions, and ultimately a shorter life expectancy, insurance companies look closely at smoking status when considering an applicant for coverage, as well as when determining the premium price to charge.

Health Condition

Your health condition can be an indicator to a life insurance carrier of just how much risk they may be taking on – and statistically, whether they may need to pay out a claim in the future. In most cases, minor health issues might not have an effect on the premium that you pay. But others, such as high blood pressure, could indicate more risk to the insurer.

Family Health History

Although you don’t have any control over your family health history, insurance companies still consider this before approving an applicant for a policy. That is because if you have a family history of health issues such as stroke, heart attack, or diabetes, it could be an indicator that you may also contract such conditions.

Driving Record

More and more insurance companies today are checking the driving record of applicants for coverage before making a decision regarding approval. This is because those who are unsafe drivers can be more at risk for an accident – which is something that a life insurance company does not want to see.

Type and Amount of Coverage

The type and the amount of the coverage you are applying for can also impact the amount of premium that is charged. For instance, term life policies are often less expensive than permanent life. A 30 year term life policy is the most expensive and longest term length you can buy. That is because permanent life insurance such as whole life and universal life has a cash value component tied to the policy, whereas term policies offer only pure death benefit protection.

Term life insurance is purchased for a certain amount of time, or term, such as ten years, twenty years, or thirty years. Here, the premium price is usually locked in for the duration – as is the coverage – and because of that, a longer term will usually cost more than a shorter term.

The tables below outline how much an applicant may pay for a $500,000 life insurance policy, based on age, gender, and term length. You can see how much the cost increases as you get older.

 

$500,000 Price Cost

AgeDeath BenefitMaleFemale
20$500,000$19$17
30$500,000$20$18
40$500,000$29$25
50$500,000$74$55
60$500,000$203$139

*$500,000 – 20 year term rates, non smoker, preferred best rate class shown. Monthly Cost Effective 11/07/2018

 

In addition, the insurance company that you purchase the coverage through can also be a factor in how much you will pay. Believe it or not, the premium can differ – sometimes significantly – from one insurer to another, even for the very same type and amount of coverage.

Where to Find the Best Rates on a $500,000 Life Insurance Policy

If you’re searching for a $500,000 term life insurance quotes – even for face amounts that range from $500,000 and up – it is always better to work with an independent life insurance agency. That way, rather than taking time to obtain information from numerous insurers individually, you can find all that you need in one convenient place.

At Local Life Agents, we work with over 40 of the top life insurers in the marketplace, so we can provide you with side-by-side life insurance policy quotes and coverage options – which can allow you to much more easily determine which one will work the best for you. When you’re ready to get started and receive your no cost, no obligation life insurance policy quotes, just simply get a quote above.