Is Life Insurance Expensive?
Jason Stolz CLTC, CRPC
Is life insurance expensive? For most people—absolutely not. The truth is that life insurance is often one of the most affordable financial tools available, offering substantial protection for your family at a surprisingly low monthly cost. At Diversified Insurance Brokers, we help clients compare policies across more than 100 top-rated carriers to find the best coverage and price for every situation.
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What Affects the Cost of Life Insurance?
Life insurance premiums are based on several key factors, most of which are within your control. Here’s what determines your rate:
- Age: The younger you are, the lower your rate. Buying early locks in long-term savings.
- Health history: Carriers evaluate your overall health, weight, and family history. If you have medical conditions, we specialize in life insurance with pre-existing conditions.
- Type of policy: Term life is generally less expensive than permanent coverage. We help you compare both.
- Coverage amount and term length: Longer terms and higher death benefits cost more but provide stronger protection for your family.
- Lifestyle factors: Tobacco use, high-risk occupations, or hazardous hobbies can affect rates—but affordable options still exist.
How Affordable Is Life Insurance Really?
Most healthy individuals can secure $250,000–$500,000 in coverage for under $1 a day. Even larger policies are often much cheaper than expected. For instance, a healthy 35-year-old non-smoker might pay less than $30 per month for a 20-year term plan.
At Diversified Insurance Brokers, our advisors shop across dozens of carriers to find the most competitive rate for your specific profile—often saving clients 20–40% compared to going direct to a single company.
Types of Affordable Life Insurance
- Term Life Insurance: Simple, low-cost protection for a set period (10–30 years). Great for families, mortgages, or income replacement.
- Whole Life Insurance: Permanent coverage that builds cash value. Ideal for estate planning or long-term financial goals.
- Guaranteed Universal Life (GUL): Combines the lifetime coverage of whole life with flexible payment options and lower premiums.
Strategies to Lower Your Premiums
- Apply while you’re young and healthy.
- Choose a policy that matches your actual needs—don’t overbuy coverage.
- Bundle with other protection products, like disability insurance or long-term care insurance.
- Work with an independent broker who can compare quotes across multiple carriers instead of being limited to one company.
Example: Comparing Costs by Age
| Age | Coverage | Term | Estimated Monthly Premium* |
|---|---|---|---|
| 25 | $250,000 | 20 years | $14–$18 |
| 35 | $500,000 | 20 years | $25–$30 |
| 45 | $500,000 | 20 years | $45–$55 |
| 55 | $250,000 | 15 years | $60–$80 |
*Estimates for non-smokers in good health. Actual rates vary by carrier and underwriting class.
Is Life Insurance Worth It?
When you compare the peace of mind it offers to the cost, life insurance is one of the most valuable—and least expensive—ways to protect your family. It replaces lost income, covers debts, funds college, and preserves your legacy. The key is finding the right policy for your goals and budget.
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FAQs: Is Life Insurance Expensive?
What makes life insurance expensive or cheap?
Main drivers are age, health, tobacco status, coverage amount, and policy type. Term life is usually the lowest-cost option, while permanent policies cost more but last for life and can build cash value.
How much does $500,000 of term life typically cost?
For a healthy non-smoker in their 30s, many quotes fall in the $20–$35/month range for a 20-year term. Your exact price depends on underwriting class and the carrier.
Can I still get affordable coverage with health conditions?
Often yes. Carriers rate conditions differently, so shopping the market matters. We specialize in matching applicants to companies that price their health profile competitively.
Is whole life always too expensive?
Not necessarily. Whole life and guaranteed universal life cost more than term, but they provide lifetime coverage and may fit goals like estate planning or legacy needs.
How can I lower my premium?
Apply while younger, choose the right term length and coverage, improve health habits, and use an independent broker to compare multiple carriers side-by-side.
Will I need a medical exam?
Some applicants qualify for no-exam or accelerated underwriting. For larger face amounts or certain health histories, a brief exam and labs may be required.
What’s better—term or permanent life insurance?
Term is typically best for the lowest cost per dollar of coverage during working years. Permanent coverage suits lifetime needs, legacy planning, or situations where you want coverage that never expires.
About the Author:
Jason Stolz, CLTC, CRPC, is a senior insurance and retirement professional with more than two decades of real-world experience helping individuals, families, and business owners protect their income, assets, and long-term financial stability. As a long-time partner of the nationally licensed independent agency Diversified Insurance Brokers, Jason provides trusted guidance across multiple specialties—including fixed and indexed annuities, long-term care planning, personal and business disability insurance, life insurance solutions, and short-term health coverage. Diversified Insurance Brokers maintains active contracts with over 100 highly rated insurance carriers, ensuring clients have access to a broad and competitive marketplace.
His practical, education-first approach has earned recognition in publications such as VoyageATL, highlighting his commitment to financial clarity and client-focused planning. Drawing on deep product knowledge and years of hands-on field experience, Jason helps clients evaluate carriers, compare strategies, and build retirement and protection plans that are both secure and cost-efficient.
