How Much Does Life Insurance Cost?

It’s a universal fact: everyone needs life insurance. 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 cost is often the top reason holding 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.

Just like with 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, 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 coverage amounts range from $10,000 up 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 ERIE offers the Guaranteed Insurability Option (GIO) rider for added peace of mind. It locks in your good health and great rate at the time 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, and an overall $1million cumulatively.

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.

If you’re looking for an easier, more simple way to obtain a life insurance coverage, consider an ERIExpress Life policy. An ERIExpress Life policy gives you the protection you need through a simple application process, no physical medical exam and a faster approval time.

To help you figure out how much coverage you might need, use ERIE’s life insurance calculator.

Protection for your life and loved ones

Life insurance doesn’t have to be super costly. What you pay will depend on a variety of factors including how much and what length of coverage you want. A discussion with an ERIE agent 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.