Average human life insurance rates for

Average human life insurance rates for 2023 If you’re looking for life insurance, there are dozens of companies, term lengths, and coverage amounts to choose from.

There is no doubt that the price will influence your decision and may determine the type of policy you choose. To get a snapshot of these rates, NerdWallet compares average life insurance rates for men and women of different ages and health levels, across multiple coverage options.

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How much is life insurance?

The average cost of life insurance is $26 per month. This is based on data provided by Quotacy for a 40-year-old who buys a 20-year term life insurance policy worth $500,000, the most common term length and amount sold. But life insurance rates can vary widely between applicants, insurance companies, and policy types.
How are life insurance rates determined?
Life insurance premiums are primarily based on life expectancy. In general, the younger and healthier you are, the cheaper your premiums.

Insurance companies typically categorize applicants using terms such as highly preferred, preferred, and standard, with ultra-preference being the most valid category. Insurance companies then calculate premiums based on your risk category.

Each insurance company has its own valuation process – known as life insurance underwriting – and weighs the factors differently. This is why it is a good idea to compare quotes from multiple insurance companies.

These are the main things insurance companies evaluate when setting your rate:

• Your age. In general, young people pay less for life insurance. This is because as you get older, your life expectancy decreases, and the likelihood that your insurance company will pay out your policy goes up. This is why it is wise to purchase life insurance as early as possible; The longer you wait, the higher your rates based solely on age.
• your gender. Because women have a longer life expectancy, women will always pay less than men of similar age and health. Life expectancy in the United States is 79.9 years for women and 74.2 years for men, according to the latest data from the Centers for Disease Control and Prevention.
• your smoking status. Since smokers are at a higher risk of developing health problems such as respiratory disease, life insurance for smokers tends to be more expensive.
• your health. This includes any pre-existing conditions, as well as your blood pressure and cholesterol levels. Insurance companies will also consider your height and weight.
• Your family medical history. Your insurance company may ask if you have a family history of serious health conditions such as heart disease, cancer or diabetes.
• Record your driving. If you have DUIs, DWIs, and significant traffic violations on your record, your insurance company may consider you a high-risk life insurance claimant and charge higher rates.
• Your profession and lifestyle. If you have a dangerous or high-risk job, such as a police officer working in a bomb squad or a race car driver, you can expect to pay more than someone with a desk job. Likewise, if you engage in risky activities such as skydiving, you may be charged a higher premium.

More: How to get affordable life insurance

The type of life insurance you choose also affects the average cost of life insurance:

Life insurance is the least expensive because it lasts for a set number of years and simply provides coverage without building cash value.

Permanent life insurance typically lasts a lifetime and includes a cash value component that allows you to borrow against your policy or withdraw money later in life. Because of the cash value and potential longer coverage period, you will pay significantly more for permanent insurance policies than for term life insurance policies.

Finally, adding commuter life insurance to your policy can increase your premium. For example, a $10,000 child passenger can cost an extra $50 to $75 per year, according to Quotacy.

More: Key Differences Between Long Term Insurance and Whole Life Insurance

What does not affect your life insurance premium
These factors have no effect on the price offered to you:

Race, ethnicity, and sexual orientation. While insurance companies assess your age and gender, they cannot discriminate based on these elements of diversity.

Average human life insurance rates for 2023 your credit score. Although your credit score won’t affect your life insurance premium, you can expect your insurance company to look at your credit history going back seven years. If you have bankruptcy on your record, you may be considered at a higher risk of death, which could affect your premiums.

Marital status. Unlike many auto insurance companies, life insurance companies do not have different rates for married applicants.

Average human life insurance rates for 2023 The number of life insurance policies you have. Just know that you need to justify buying large amounts of coverage across multiple policies.

The number of beneficiaries you name. Whether you have one life insurance beneficiary or five, it won’t affect your rate.

Average cost of life insurance by age
These annual life insurance rates are based on a $500,000 insurance policy for highly favored applicants.