Life insurance companies look at two main factors when setting the premium costs on a $500,000 policy - your age and your health status.
Age: Obviously, the younger you are, the cheaper your life insurance rates will be.
Health: If you do not have any serious health issues and your weight is within normal ranges (healthy BMI), your rates will be favorable.
For most middle class individuals and families, a $500K life insurance policy is enough, but it depends on your current financial situation, lifestyle, and outstanding debts.
Financial experts traditionally recommend that individuals take out at the very least seven times their annual income. So, half-million dollars would be a sufficient amount of life insurance for someone making around $70,000 per year.
Nevertheless, each family’s needs does tend to vary.
Therefore, a more accurate account might be to calculate how much is necessary to replace the main breadwinner's income, or what would the costs be to cover such things as college tuition, mortgage payments, car payments, debts, etc.
The premiums shown in the table below are for men in good health and non-smoking.
|40 year old man||$30.15|
|45 year old man||$51.22|
|50 year old man||$77.99|
|55 year old male||$124.46|
|60 year old male||$212.15|
|65 year old male||$403.88|
07/11/2022 - These best rates are just an estimate. Your policy costs could be different.
The premiums shown in the table below are for women in good health and non-smoker.
|65 year old woman||$149.35|
|66 year old woman||$163.75|
|67 year old woman||$178.43|
|68 year old woman||$195.65|
|69 year old woman||$222.70|
|70 year old woman||$249.75|
|71 year old female||$275.85|
|72 year old female||$308.70|
|73 year old female||$354.85|
|74 year old female||$400.45|
|75 year old female||$455.90|
07/11/2022 - These best insurance rates are just an estimate. Your premiums could be different.
If you smoke or use tobacco products, consider quitting. This will save you a lot of money on your life insurance rates. Smokers often pay 3 to 4 times the average rates on non-smokers.
Occasional cigar smokers may get a break, because some insurers consider them non-smokers, but this is still ascertained on an individual basis.
So, other than the consideration for diaper and kindergarten costs, parents who are looking forward to having their first or next child should add a further item to their to-do list: either taking out, or adding to a life insurance policy. Fact of the matter is that their kids may well depend on it one day.