How Much is the Average Whole Life Insurance Cost?

Life insurance has different types so before deciding what is best for you, you must learn to understand it first. You must also know why you need a life insurance plan as well as its advantages and disadvantages. Basically, the purpose of life insurance is to replace the salary of a loved one. This plan will provide financial needs for the family that relies on that salary.

Of course, you do not want to leave your family burdened under thousands of dollars of debt. Getting a life insurance plan makes your mind at peace. Knowing that your family will be taken care of in case something happened to you.

We have personally talked to multiple families who are getting life insurance after they lost a family member. These applicants have experience how difficult it is when someone passed away without getting a life insurance plan. You might as well, not wait to lose a loved one before getting a life insurance plan. After all, it is never too early nor too late to get started.

There are many options for you when it comes to finding the right life insurance policy. We have whole life insurance and term life insurance plans that financially protect your loved ones when you die. In this article, we are going to specifically discuss what whole life insurance is and its rates/costs. 


What Is Whole Life Insurance?

Whole life insurance is a type of permanent life insurance plan. It lasts your entire life even though you only pay premiums until a certain age or certain years. It is a plan wherein you pay for your entire life, so when you die, your beneficiaries get the benefits. Since the policy is permanent, its premium plans are typically more expensive than term life. The difference is anywhere from 5 to 7 times more premium. However, the reason for this significant difference is that you can get a payout eventually, no matter what.

Additionally, whole life insurance has a component called “cash value”. This cash value is similar to a savings account that you can access in times of need. The cash value account that the whole life insurance offer makes a smart way to save money for your family.


Factors Affecting the Cost of Whole Life Insurance

When getting your life insurance plan, its cost and rates may differ from person to person. Aside from the cost itself, there are a lot more factors needed to consider before getting the right rates for you. Below are some of the factors that may affect the rates and cost of your whole life insurance plan.

Type of life insurance policy

Whole life insurance is permanent, so it costs six to ten times more than the term life insurance policy. Since a whole life insurance plan offers lifelong coverage, it has a savings component that becomes a cash asset over time.

Amount of coverage

This also affects the costs, a $1 million life plan policy is more expensive than a $250,000 or $500,000 policy, and so on.


When it comes to age factor, the older you are, the lower your life expectancy as well. The main reason why insurers reserve their best rates for young applicants.


Gender also affects the rates as studies show that women tend to live longer than men. For that reason, insurers charge women a lower premium. 

Your lifestyle

Underwriters assess your lifestyle. They will asses your driving record, alcohol and drug use. Also, dangerous hobbies, such as skydiving, scuba diving etc., will put you in a lower life insurance plan. Applicants who have safe lifestyles are rewarded with better premiums. 

Your occupation

If your work or profession puts you in dangerous situations you are most likely to pay more than someone with an office job. 

Health condition

Your insurer will look at preexisting health conditions and will determine your health status. Any medical conditions, surgeries, prescriptions, diagnoses, or mental illness will be evaluated to determine your level of risk.

If you are a smoker

Smoking is always linked to a host of health issues, so smokers always pay more for the coverage.


Most of the life insurers charge a fee to add optional extras to your policy. For example, you are a rider, you can get a waiver of premium or accelerated death benefit.


What is the Average Cost of Whole Insurance?

“How much does a life insurance policy cost per month?” the first question every applicant ask before getting life insurance. Most people are worried to pay too much for their life insurance coverage plan. 

Typically whole life insurance costs more than the term life insurance policy.  The average life insurance rates are always greater on whole life insurance policies. Simply because whole life insurance has some type of cash value buildup. Whereas traditional term life insurance policies do not have.

To give you an idea the average life insurance costs is ranging between $500 and $1,500 every year. If it’s a monthly premium, the estimated cost will be around $40 to $150, still depends on the type. Whereas the payment for a whole life policy plan is usually between $100,000 and $5 million. This cost may change depending on your financial needs and other factors, mentioned above.


Key Takeaways

There are many life insurance companies out there that provide whole life insurance. However, it is always important to be careful about choosing where to get your life insurance. Do not be fooled by those whole life insurance costs, that they show. As we have mentioned earlier, cost itself is not always the main factor to consider when getting life insurance. Price is not everything when it comes to whole life insurance. If you want to get good assets, consider the factors we have mentioned above.

In Life Insurance Direct, we provide insurance brokers support available 24 hours a day, 7 days a week. We are knowledgeable enough to keep you covered for your entire life and ensure a bright future for your family. 

You can contact our expert insurance brokers today to get a quote for whole life insurance or you can use our free online quote calculator on our website. 

Related article: How Much is the Cost of Life Insurance?

Leave Comment