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How Much Does Life Insurance Cost?

It’s a universal fact: everyone needs life insurance.1 Whether you’re a student, parent (single or married), or empty nester, life insurance can help protect the life you’ve built for yourself (or a future if you purchase life insurance for a child). So, what’s preventing you from getting a policy today? Aside from the general discomfort many get when discussing life insurance, presumed costs often hold people back from obtaining life insurance.

According to the 2023 Insurance Barometer Study conducted by Life Happens and LIMRA, people think that life insurance costs three times more than it really does. So, what does this mean for you and your monthly budget? It depends on a number of factors.

Factors affecting the cost of life insurance

Like auto insurance, several factors impact your life insurance premium price. While some are obvious, others might not be, including:

  • Age: Generally, the younger you are, the healthier you are, so your premiums will likely be cheaper.
  • Health: We already touched on this above, but good health will help lower your monthly cost. Bear in mind that life applicants typically pay more if they’re tobacco users. If you have a chronic health condition, that doesn’t necessarily disqualify you from being eligible for a life policy. Talk to an agent to explore your options.
  • Lifestyle: Engaging in more dangerous hobbies (like skydiving or scuba diving) can cause premiums to rise.
  • Sex at birth: Women tend to live longer than men on average, so their premiums are often slightly lower.
  • Type of policy: Premiums are typically lower for a term life insurance policy (available in 10-, 15-, 20- or 30-year plans) than a whole life insurance policy.
  • Amount of coverage: Life insurance amounts range from $10,000 to $10 million. Most of us probably won’t need that much, but you can expect to pay less in premiums for a lower coverage amount than a large one.

Lock in your good health

Life has a funny way of throwing curveballs at you when you least expect them. That’s why considering a Guaranteed Insurability Option (GIO) rider2 is a good idea for added peace of mind. It locks in your good health and great rate when your policy goes into effect. It allows you to increase your life insurance coverage easily when qualifying life events occur, like getting married, buying a home, and having a child.

Additionally, you have the opportunity to purchase more coverage because of your GIO rider at certain ages, starting at age 25 and going up to age 46 (basically every three years). The most coverage you can add at each point is $250,000, for an overall cumulative total of $1 million.

More affordable than you might think

For around what you pay for Netflix, you could have the protection of a life insurance policy. For example, a healthy 30-year-old male purchasing a 10-year term policy with $250,000 in coverage could pay less than $15 a month.3

Protection for your life and loved ones

Life insurance doesn’t have to be super costly. What you pay will depend on various factors, including how much and what length of coverage you want. Discussing with one of our local insurance agents can help you decide on the coverage that best fits your needs.

LIMRA is a large trade association supporting the insurance and related financial services industry by helping them understand industry trends, develop talent, inform strategies and create solutions that help advance the industry.

ERIE® insurance products and services are provided by one or more of the following insurers: Erie Insurance Exchange, Erie Insurance Company, Erie Insurance Property & Casualty Company, Flagship City Insurance Company and Erie Family Life Insurance Company (home offices: Erie, Pennsylvania) or Erie Insurance Company of New York (home office: Rochester, New York).  The companies within the Erie Insurance Group are not licensed to operate in all states. Refer to the company licensure and states of operation information.

The insurance products and rates, if applicable, described in this blog are in effect as of January 2024 and may be changed at any time. 

Insurance products are subject to terms, conditions and exclusions not described in this blog. The policy contains the specific details of the coverages, terms, conditions and exclusions. 

The insurance products and services described in this blog are not offered in all states.  ERIE life insurance and annuity products are not available in New York.  ERIE Medicare supplement products are not available in the District of Columbia or New York.  ERIE long term care products are not available in the District of Columbia and New York. 

Eligibility will be determined at the time of application based upon applicable underwriting guidelines and rules in effect at that time.

Your ERIE agent can offer you practical guidance and answer questions you may have before you buy.