A $500,000 life insurance policy can provide enough coverage to take care of your family and expenses like the mortgage and children’s college costs if you die unexpectedly.
The cost of life insurance is often overestimated, so don’t assume you can’t afford a $500,000 life insurance policy without first getting life insurance quotes. you may even find that the cost of a $1 million life insurance policy is much less than you expected.
how much is a $500,000 term life insurance policy?
We analyzed term life insurance quotes for policies with $500,000 in coverage and found:
- The average cost of a 10-year, $500,000 term life policy is $200 a year.
- The average cost is about $275 a year over 20 years, if you buy life insurance at age 30 while in good health, including not smoking.
- How much does a $100,000 life insurance policy cost?
- How much does a $250,000 life insurance policy cost?
- if you wait until age 40 to buy a $500,000 20-term life insurance policy instead of buying it at age 30, quotes increase 36% for men and 33% for women .
- If you wait until age 50, costs increase 212% for men and 176% for women compared to a 30-year-old man.
- hold out until age 60 (instead of buying at age 30), the cost increases by 740% for men and 610% for women. for men, the annual rate is more than $2,500 at age 60 (compared to $300 at age 30), and for women, almost $1,800 compared to only about $250 at age 30.
- At age 30, men pay 19% more than women, nearly $50 more a year.
- at age 40, men pay 21% more, which equates to $72 more per year than women.
- at age 50, men pay 34% more than women, an additional $240 a year.
- at age 60, men pay 41% more, which equates to $732 more per year than women.
- Moving from a 10-year term to a 15-year term increases rates by 11% for men and 20% for women.
- Upgrading from a 10-year term to a 20-year term increases rates by 39% for men and 40% for men.
- Both genders can double the length of the term life policy (from 10 to 20 years) and not even pay 50% more for the policy.
- To triple the time from 10 to 30 years, men pay 105% more and women 87% more.
- Going from $500,000 to a $750,000 policy costs 32% more for men and 14% more for women.
- Increasing your coverage amount from $500,000 to $1 million does not double your life insurance costs. It costs only 60% more for men and 38% more for women to double coverage.
- Going from $500,000 to a $2 million policy gives you four times the death benefit, but doesn’t quadruple your life insurance costs. men pay 192% more and women 148% more.
Your own life insurance quotes will vary based on your age, health, and other factors that affect life insurance quotes. however, our analysis of average costs per $500,000 in life insurance gives you a basic idea of how much you can expect to pay.
average cost of $500,000 term life insurance by age and gender
average annual costs for a term life insurance policy of $500,000 for 10 years
average annual costs for a term life insurance policy of $500,000 for 15 years
average annual costs for a term life insurance policy of $500,000 for 20 years
average annual costs for a term life insurance policy of $500,000 for 30 years
buying younger means lower life insurance costs
Age is a major factor in the cost of life insurance. life insurance quotes will increase each year as you age. Plus, you risk developing a health condition that will cause higher quotes if you’re waiting to buy life insurance.
To get the best life insurance quotes, shop for coverage as soon as the need arises.
Our $500,000 term life insurance cost analysis finds substantial savings if you buy coverage when you’re 30. Waiting until age 50 or 60 to buy a 20-year term life policy results in paying significantly more than buying coverage at a younger age:
how gender affects the cost of $500,000 life insurance
Life insurance quotes show that gender is also important to life insurance companies. men typically don’t live as long as women, so men pay more for their policies.
Our analysis shows that men of all ages will get higher quotes for $500,000 life insurance policies compared to women. the difference in costs fluctuates as they age.
For example, looking at a $500,000 20-year term life insurance policy, here’s how gender affects rates:
$500,000 term life insurance costs
Buying a term life insurance policy with a longer level term period means you’ll pay more, but lock in a longer rate. the level term period is the number of years you will lock in at a constant annual rate, such as 10, 20, or 30 years.
When the level term period ends, you can typically renew the policy every year, but you’ll likely face much higher rates with each renewal, and the cost may become unaffordable.
Buying the right term life insurance up front will save you money in the long run by locking in your costs for the level term period.
Here we compare the costs of various duration policies for $500,000 life insurance for a 30-year-old man and woman.
average annual costs per term for a $500,000 life insurance policy
our analysis found that:
life insurance costs of $500,000 per coverage amount
We looked at the costs of $500,000 term life policies compared to other coverage amounts.
Getting quotes for various life insurance payout amounts can help you decide if a $500,000 life insurance policy fits your budget.
average annual costs per coverage amount for 20-year term life insurance
we discovered that:
tips for buying $500,000 life insurance
When looking at $500,000 life insurance costs, first make sure $500,000 covers your life insurance needs.
Determine what debts and other obligations your family would have if you were no longer around. Your financial review should include credit card balances, car loans, your home mortgage, and other financial obligations. Decide if you want to provide additional life insurance money to cover lost income, college tuition, and funeral expenses.
once you know how much life insurance you need, think about how long the policy should last.
Term life insurance is good for covering obligations that have a definite end, like the years until you retire. If you want coverage no matter how long you live, consider whole life insurance or universal life insurance. A financial advisor or life insurance agent can also help you identify the best coverage amount and policy type.
Don’t be surprised if a life insurance medical exam is required for the application process. life insurance companies often require an exam in order to get a detailed picture of your health. No-exam life insurance policies are becoming more widely available, but if you’re not in excellent health, you may not qualify.
Finally, check the financial strength ratings of the life insurance companies you’re considering. Rating agencies like AM Best and Standard and Poor’s analyze a company’s finances and create financial strength ratings that indicate an insurer’s ability to pay its claims. Because life insurance may not pay out for decades after you buy it, a company’s financial strength is especially important.
We looked at term life insurance rates for healthy non-smokers of average height and weight. we averaged the four cheapest quotes we found online. Your own rates will be different based on your age, health, driving history, and other factors.