How much does a $500,000 life insurance policy cost? Crucial question. Well, this guide is just for you. It is without a doubt how important life insurance is to an individual or their family. This financial tool gives you the peace of mind you and your loved ones need in the event of your passing away.
Among the different insurance coverage options available and accessible to individuals, a $500,000 life insurance policy is a well-known option for many people who are looking to protect the future of their family against unpredictable situations.
However, keep in mind that the price of purchase of this policy type can differ based on different factors which you will be learning about later in this content.
How Much Does A $500,000 Life Insurance Policy Cost?
As mentioned earlier, many factors affect the cost of a $500,000 life insurance policy. Meanwhile, the average cost of a $500,000 life insurance policy for a 10-year term is $200 per year. While the average cost for a 20-year term is $275 per year.
Here are the responsible factors for the cost of a $500,000 life insurance quote:
- Age.
- Type of policy.
- Gender.
- Health condition.
- Term length.
- Coverage amount.
- Smoking status.
If you are a healthy person within the age range of 30 or 40, you may have to pay around $20 to $50 per month for a 20-year term policy. The underwriting requirements of the insurance provider and the circumstances of a person affect these figures. This is why it is important to compare quotes among companies.
When You Should Buy a $500,000 Life Insurance Policy?
If you are debating on whether or not to get a $500,000 life insurance policyand are having trouble deciding, do not worry. In this section, you will find out the best moment or time to get or purchase this policy type. You can consider buying a $500,000 life insurance quote if:
- You have dependents.
- Looking to cover funeral expenses.
- Have existing debts.
- Need financial stability.
- Have plans to replace income.
- You want to leave an inheritance for your beneficiaries.
When Is Getting Such a Quote a Bad Idea?
Even though getting a $500,000 life insurance policy is helpful in certain situations, there are also specific times when you should not consider getting this type of policy. So, you should not consider a $500,000 life insurance policy if:
- You cannot afford the insurance premiums.
- Have no financial obligations.
- If you have health issues.
- Have no dependents.
- If you have enough investments and savings.
- You do wish to pay for coverage you do not need.
$500,000 Life Insurance Policy Average Cost by Age and Gender
Here is the average cost of a $500,000 life insurance policy based on age and gender, for 10, 15, 20, and 30 years.
Average Costs for a 10-Year, $500,000 Life Insurance Policy Annually
| Age | Male | Female |
| 30 | $216 | $180 |
| 35 | $216 | $192 |
| 40 | $276 | $264 |
| 45 | $372 | $312 |
| 50 | $564 | $432 |
| 55 | $888 | $648 |
| 60 | $1,392 | $948 |
Average Costs for a 15-Year, $500,000 Life Insurance Policy Per Year
| Age | Male | Female |
| 30 | $240 | $216 |
| 35 | $252 | $240 |
| 40 | $348 | $300 |
| 45 | $468 | $372 |
| 50 | $708 | $528 |
| 55 | $1,152 | $768 |
| 60 | $1,824 | $1,260 |
Average Costs for a 20-Year, $500,000 Life Insurance Policy Annually
| Age | Male | Female |
| 30 | $300 | $252 |
| 35 | $312 | $264 |
| 40 | $408 | $336 |
| 45 | $612 | $468 |
| 50 | $936 | $696 |
| 55 | $1,500 | $1,068 |
| 60 | $2,520 | $1,788 |
Average Costs for a 30-Year, $500,000 Life Insurance Policy Per Year
| Age | Male | Female |
| 30 | $444 | $336 |
| 35 | $480 | $384 |
| 40 | $684 | $528 |
| 45 | $1,044 | $768 |
| 50 | $1,680 | $1,200 |
| 55 | $3,084 | $2,160 |
| 60 | Not Applicable | Not Applicable |
Average Annual Cost by Term Length for a $500,000 Life Insurance Policy
Here is the average cost of a $500,000 life insurance policy per year based on the term length:
| Term | Male of Age 30 | Female of Age 30 |
| 10-Year Term | $216 | $180 |
| 15-Year Term | $240 | $216 |
| 20-Year Term | $300 | $252 |
| 30-Year Term | $444 | $336 |
$500,000 Life Insurance Plan Costs by Coverage Amount
Here is the average cost of a $500,000 life insurance policy by coverage amount as the affecting factor:
| Coverage Amount | Male of Age 30 | Female of Age 30 |
| $100,000 | $108 | $108 |
| $250,000 | $192 | $168 |
| $500,000 | $300 | $252 |
| $750,000 | $396 | $288 |
| $1 Million | $480 | $348 |
| $2 Million | $876 | $624 |
Tips for Buying A $500,000 Life Insurance
Before purchasing a $500,000 life insurance policy, especially as a newbie, here are some tips you can implement or use to get a good option:
- Evaluate your coverage needs.
- Get familiar with the types of life insurance.
- Compare policies from different insurance providers.
- Consider your age and health.
- Choose a sufficient term length.
- Review the financial stability of insurance providers.
- Consider policy options and riders.
- Analyze policy terms and conditions.
- Be transparent.
- Ask a financial advisor for assistance.
Asking an insurance agent or a financial advisor for help can help you evaluate your needs and help you with the application process to meet your needs.
