Due to its limited death benefiabsence of a cash value component, unlike permanent insurance, term life is typically the least expensive type of life insurance available.
For instance, as of February 2023, according to data from Insureon, a healthy, nonsmoking 30-year-old man could purchase a 30-year term.
Life insurance policy with a $500,000 death benefit for an average of $30 per month. The monthly premium would rise to $138 at the age of 50.
In contrast, the rates for a $500,000 whole life policy (a type of permanent policy with cash value that covers your lifetime) can be found below.
As can be seen, the same healthy 30-year-old male would pay $282 per month on average. He would pay $571 at 50.
Premiums can also be affected by state regulations, interest rates, the insurance company’s finances, and interest rates.
At the “breakpoint” coverage levels of $100,000, $250,000, $500,000, and $1,000, businesses typically offer better rates.
