And one of the most important points that must be evaluated has to do with the money essential to hire a trusted insurance company. That is why we have investigated some figures that could give you an estimate of how much life insurance costs in the United States , and we will show them to you below.

What is a insurance of life?

As its name suggests, life insurance is a type of plan that seeks to protect the insured’s relatives when he dies, as well as covering funeral expenses and debts left behind (if applicable).

Likewise, life insurance has the capacity to generate interest that can be collected in cash by the beneficiary , money that can be used to acquire other policies in the chosen company or, on the contrary, simply use it for common expenses.

Exactly, the payment of homes or investments for the expenses of the children are some of the most frequent options in which the insured spend the money received.

Obviously, life insurance can have different options, so it is entirely possible to choose between programs designed for a single person or for an entire family group.

Regarding the operation of life insurance, you should know that it is almost always a contract with clauses that specify the advantages , the premiums that the insured must pay and the beneficiaries of said program.

In addition, the document details the way in which the plan coverage will be paid and, of course, the way in which the rest of the family will benefit in the event of death.

Types of life insurance in the USA

Another aspect that you should know about life insurance in the United States is its types, and although it is likely that the companies that provide these services have their own categories, this time we will focus on the most used and popular ones throughout the country.

In this sense, it is also essential to highlight that the categories that we will explain are specific for people who opt for individual insurance , since the programs designed for family groups may have other divisions.

That said, we invite you to carefully read the types of plans that we will explain below.

term life insurance

Also known as term life insurance, policies of this type are usually cheaper and easier to acquire than those that we will detail in the next section. It consists, then, in choosing a plan for a certain number of years , and only if death occurs within that period is the insurer able to respond.

Depending on the chosen company, this type of life insurance can be valid from one to 30 years , and the conditions that characterize it can also vary depending on the beneficiary’s budget.

Also, you should know that the design of these types of plans is usually more limited and with few benefits.

permanent life insurance

Also known as whole or whole life insurance, these policies are often much more comprehensive than the alternative just mentioned , but they are also likely to be more expensive.

As its name indicates, it is an option that covers the beneficiary for life , so it does not have an expiration date once the insurance is taken out. In addition, it is important to note that this option has numerous and varied benefits that can be fully exploited by the insured.

But before naming some of the most outstanding benefits of this type of insurance, we want you to know that, in turn, these programs are usually divided into other categories , each with its own characteristics.

Among the best known of them we can mention universal, traditional, variable and universal variable life insurance . Returning to the benefits that you can enjoy by having permanent life insurance, we can detail some such as:

• Loan application.
• Remuneration of cash values.
• Accompaniment of relatives after the death of the insured.
• Financial support for the education of children until their majority.
• Discounts on the acquisition of policies that insure other assets of the person who contracted the service.

What influences the prices?

Now focused on the issue of life insurance costs in the United States, you should bear in mind that there are a number of parameters that companies take into account before designing the most effective plan for their clients.

And although it is possible that they include other studies, below we will talk about the most frequent and decisive ones.

• Age : The first thing you should know is that insurance companies charge the lowest rates for younger people, and this is because older adults tend to experience more risks and, therefore, are likely to need more care and support in case of death.
• Health status : if you have previously searched for the procedure to obtain a life policy in the USA, you will surely have noticed that medical examinations are an important part when making the application. This is because companies have to know the state of health of each applicant to, in turn, determine what are the possible risks that they could face (and that, obviously, the company would have to cover). In this sense, people with chronic diseases tend to have higher premiums when taking out health insurance.
• Gender : companies of this type ensure that women are likely to live longer, and therefore tend to pay less in life policies.
• Job title : In addition to determining what type of insurance each person can afford, knowing the job the prospective client has also influences the coverage they will need. This is because, specifically, there are jobs with higher risks (such as firefighters or police officers ), which need a program adapted to their requirements.
• Habits : smoking, for example, is one of the aspects that directly influences the determination of insurance prices. Like this lifestyle, there are many others that are just as important (because of their risks) when studying premium rates.

Costs of life insurance in the USA

Once all the aspects that we have just mentioned are thoroughly evaluated, insurance companies will be ready to set the total cost of life policies in the United States.

However, you must bear in mind that explaining the prices in each case could be a challenge , precisely because of the variables that influence them. To all of the ones that we explain, we must also add that the plans can change in price depending on the exact characteristics of each one of them.

Even so, we dare to leave you some cost ranges for these programs in the United States , which, as we already explained, may be lower or higher depending on the context. To detail it more easily, below we leave you some annual costs of term life insurance divided by categories.

According to age

non smoking

• 25 years: starting at $300.
• 30 years: starting at $400.
• 35 years: starting at $450.
• 40 years: starting at $600.
• 45 years: from 900.
• 50 years: starting at $1,400.
• 55 years: starting at $2,200.
• 60 years: starting at $3,800.
• 65 years: from $7,000.

smokers

• 25 years: from $1,000.
• 30 years: from $1,200.
• 35 years: from $1,400.
• 40 years: from $2,100.
• 45 years: from $3,300.
• 50 years: from $5,200.
• 55 years: from $7,900.
• 60 years: from $12,000.
• 65 years: from $18,000.

according to gender

Men

• From $350 to more than $8,300 depending on age.

Women

• From $312 to over $7,200 depending on age.

Depending on the amount of the policy

• $100,000 coverage: from $220.
• $250,000 coverage: from $400.
• $500,000 coverage: from $700.
• Coverage of $1,000,000: from $1,500.