What is the average price of life insurance? According to one source the average cost of a life insurance plan is $500 a year. But the actual costs of life insurance are dependent on so many variables that “average” may mean nothing in regards to your own costs.
Actuarial figures used to compute the premiums on any particular individual will factor in such diverse variables as age, existing health problems, geographic area of residence, and choice of career, among other things.
When choosing a life insurance policy the first thing to do is determine what you want to use it for. There are two fundamental forms of life insurance. In term life, considered a simple original form of insurance, you are gambling that you will not live long: the longer you live the more you pay without any increase in worth or equity. You “win” if you die soon, having paid little in relation to the ultimate return.
Whole life is structured more like a vested savings plan: while it will pay out a minimum amount at any time you die, the longer you live and pay the closer you come to being fully vested and the greater value the policy has. This type of insurance is often used as an alternate form of savings or investment and can be used as capital when taking loans. It tends to cost more in premiums, but is valuable for the savings value and the increase in vested status. Whole life insurance comes in a number of forms, with varying benefits and cost-return ratios.
To decide what sort of insurance you want, you must first decide what you want to do with it. If you want to save for your future, or that of your heirs, then some form of whole life insurance is in your best interest, and you want to choose an amount that you can maintain easily for a long period of time.
If you have chosen other ways to invest, and want mainly to be sure your family can pay for funeral expenses, then the frugality and limited aspects of term life may be your choice of plan. Regardless, be ready to face the end result of actuarial figures: again, age, health, job risks, and other factors will be reckoned, and the end result is not easy to predict if you are unfamiliar with the statistics.
In any case the best way to get a lower rate than the average is to get a free life insurance quote. Get one now simply by using the following form:
