How Much Does Whole Life Insurance Cost?

Whole life insurance costs significantly more than term life insurance, so much so that Adams says it may not be affordable for many individuals and families. She says a whole life policy could cost as much as 15 times more than a term policy.  Keep in mind that the amount you pay for whole life insurance depends on quite a few factors that are specific to you, like your:

  • Age
  • Gender (women generally pay less because of their longer life expectancy)
  • Personal health history
  • Family health history
  • Smoker status
  • Engagement in risky occupations (like roofing) or hobbies (like skydiving)

To summarize, anything that increases your risk of premature death can lead to higher whole life insurance rates.  Schneider was able to give us a ballpark range to consider. “Many whole life policies I’ve seen sold to unsuspecting young investors are in the $200-$500/month range. By contrast, an online quote I just ran for a 20-year term life insurance policy with a $1,000,000 death benefit for a healthy 30-year-old man was $42,” he explains. 

Like all insurance products, it pays to shop around to find the best possible rate for your whole life insurance policy. Also, remember some financial planners receive commissions from insurance companies, which may skew their advice.

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