There are very few types of insurance that are universally recommended for everyone. After all, not everyone owns a home or a car, much less a business. However, there is one type of insurance policy that every individual should have: life insurance.
Yet nearly 100 million Americans still don’t have coverage, and many say the cost of life insurance is the reason why.
You might be wondering, “How much is life insurance really?” The average life insurance rates are often far less than people expect, especially for younger, healthy individuals.
Let’s look at the key factors that affect your monthly cost and how to find the right amount of coverage for your needs.
How Much Is Life Insurance In 2026?
Life insurance is much more affordable than the typical auto or home insurance policy. In fact, you’re probably paying more for your favorite streaming services!
On average, a $500,000, 20-year term life insurance policy for a healthy 30-year-old non-smoker costs less than $250 per year (or under $20/month). That’s the average life insurance cost, but your monthly premiums may increase if you choose a large policy amount or have certain health issues.
The best way to find out how much life insurance costs for you is by getting a personalized quote through an independent insurance agent. Because independent agents aren’t tied to one company, they can compare rates from multiple carriers to help you find the best value.
What Factors Affect Your Life Insurance Cost?
Like any other type of insurance, life insurance rates are based on specific factors.
- Age – The younger you are when you purchase a life insurance policy, the lower your rates tend to be.
- Gender – Because women tend to live longer than men, their life insurance rates tend to be lower.
- Health – Because your medical history affects your lifespan, healthier individuals tend to receive lower rates, while those with pre-existing conditions may pay more.
- Smoking Habits – Smokers should expect to pay considerably more for life insurance than non-smokers.
- Type of Life Insurance – Which type of life insurance you purchase will have a huge impact on your premium amount. For example, term life insurance rates are often lower than permanent life insurance, since it only lasts for a certain period of time.
- Coverage Amount – Finally, a higher death benefit amount will often result in higher premiums.
Your life insurance company uses these factors to help them determine 1) how long you are expected to live and 2) how much they will have to pay your beneficiaries.
However, each insurer will weigh these factors differently, which is why it’s important to get life insurance quotes based on your own data (not that of your family or friends).
How Much Life Insurance Do I Need?
Purchasing the right amount of coverage is the key to making sure your loved ones are financially protected after you’re gone. The best policy amount depends on your unique situation.
Start by thinking about the expenses your family would face without your income. Would they need help paying the mortgage, everyday bills, or education costs? Would they need funds to cover your final expenses like funeral or medical bills?
Keep in mind that these contributions aren’t always financial. If a stay-at-home spouse passes away, you will have to start paying for childcare, housekeeping, and other expenses.
It’s also important to think about your life insurance coverage in terms of time. If you’re still raising children or have a mortgage, a 20-year term life insurance policy can provide long-term protection through those crucial years. Others may prefer a permanent life insurance option that lasts for life and includes a cash value component.
If you’re not sure how much to buy, a good starting point is to multiply your annual income by 10. That’s often enough to replace your income and help your family maintain financial stability while they adjust.
Working with an independent agent makes it easy to buy life insurance that matches both your goals and your budget without paying for more coverage than you need.
How To Save On Life Insurance
The good news is that there are plenty of ways to make life insurance coverage more affordable, no matter your age or financial situation. A few smart choices can reduce your monthly cost and help you get the protection your family needs at a price that fits your budget.
- Apply early. Your age and health are two of the biggest factors in your life insurance rates. The longer you wait, the more your monthly premiums will rise—especially if new health issues appear over time.
- Choose a term policy. Term life insurance is generally cheaper than permanent policies. If you only need coverage for a specific number of years, such as while paying off a mortgage or raising kids, a 20-year term life insurance plan can save you hundreds over its lifespan.
- Stay healthy. Maintaining good habits like exercising regularly, avoiding smoking, and getting preventive checkups can help you qualify for lower rates instead of being placed in a higher premium category.
- Compare multiple quotes. Not all life insurance companies use the same underwriting guidelines. Getting several life insurance quotes helps you find the best rate for your situation.
- Work with an independent agent. Independent agencies like Darr Schackow Insurance compare policies from multiple carriers, saving you time and ensuring you get the most competitive price available.
A few proactive steps today can lead to long-term savings and lasting peace of mind knowing your family’s financial future is protected.
Life Insurance Is Worth It
When you add up the numbers, it’s clear that life insurance coverage doesn’t have to break your budget. For most people, the monthly cost of life insurance is well worth the premiums—especially compared to the peace of mind it brings.
The smartest time to buy life insurance is always now. Rates increase with age, and waiting even a few years can mean paying a much higher premium later.
At Darr Schackow Insurance, our independent agents work with trusted life insurance companies to find the best options for your goals, lifestyle, and budget. Whether you need a short-term policy or long-term protection, we’ll help you compare life insurance quotes and choose coverage that makes sense for your family.
Ready to see how affordable your policy could be? Contact DSI today to get a personalized quote and start protecting what matters most.