Talking about death is one of the hardest conversations to have. No one likes thinking about it, but unfortunately, it’s a natural part of life.
With the average costs of funerals ranging between $7,000 to $12,000, it can create a financial burden for those taking care of your arrangements. However, there is a way to minimize financial stress.
You can invest in life insurance. It provides a way for your family to take care of funeral expenses and more after you’re gone.
Do you know what the average cost of life insurance is? If not, continue reading to learn more.
How Much Is Life Insurance?
The average cost of life insurance can be anywhere between $30 – $50 a month, depending on the individual. Companies consider various factors such as:
- Your age
- Current health
- Length of coverage
The older you are, the higher your life insurance prices will be each month since you’re more susceptible to illnesses than a younger person. Also, according to recent studies, men are four times as likely to die than women, which is another significant factor in costs.
Types of Life Insurance
Besides the factors that we mentioned above, the type of life insurance you choose will also impact how much you pay per month. Here are the two types of life insurance policies that you can choose from.
Term Life Insurance
Term life insurance is a policy that lasts for a set period. It’s useful for someone who’s on a budget or doesn’t need long-term insurance.
Most individuals either choose a 10 or 20-year term policy. However, annual rates for a 20-year policy will be much higher than those of a 10-year policy.
For example, if you’re taking out a 10-year life insurance policy worth $100,000, your average monthly premium would be around $20. But if you were availing of a 20-year policy, your life insurance cost would jump by $10.
Permanent Life Insurance
Another type of life insurance you can acquire is permanent life insurance. These policies tend to be more expensive because it covers the duration of your life.
For example, a 35-year-old seeking this type of life insurance with a death benefit of $500,000 is going to pay $475 per month. However, a 50-year-old with the same policy will spend over $900 a month.
Don’t let the high costs deter you. You can also use permanent life insurance for investing money. Each time you pay your monthly premium, some of the money goes to your death benefit and the other to your policy cash value.
It’s like a savings account that accumulates interest. That’s why most military members prefer this kind of policy. If you’re an active service member, check out Paradigm Life to learn more about this type of insurance.
Now You Know the Average Cost Of Life Insurance
As you can see, the average cost of life insurance will depend on various factors. However, it’s important to look at getting a policy while you’re younger to ensure your family’s financial security in the event of a tragedy.
If you’re curious about more lie insurance tips, check out our blog for related content.