A $500,000 term policy is one of the most common amounts families choose, and it is often more affordable than people expect. The price is personal, though — here is what sets it.
What sets your price
- Age — the younger you are when you buy, the lower the premium.
- Health — medical history, build, blood pressure, and whether you use tobacco.
- Term length — a 30-year term costs more per month than a 10-year term.
- Gender and, at some insurers, occupation and hobbies.
Why it is often cheaper than expected
Term life covers a set number of years and has no cash value, which keeps the cost down. Healthy applicants in their 30s and 40s are often surprised at how affordable substantial coverage can be. Prices rise with age, so waiting usually costs more.
Level premiums
Most term policies lock in your premium for the full term. The price you start at is the price you keep, even if your health changes later.
Getting a real number
Online estimates are rough. A real quote reflects your health class, which is set after the insurer reviews your application — sometimes with a short medical exam, sometimes without one. Comparing quotes from more than one insurer is worth the few extra minutes.
The bottom line
The cost of $500,000 in term coverage is personal and usually reasonable, especially when you are younger and healthy. A real quote takes minutes and locks in today's age and health.
Learn about term lifeThis article is for educational purposes only and is not tax, legal, or investment advice. Insurance and annuity products are not deposits, not FDIC insured, and not guaranteed by any bank. Guarantees are backed solely by the financial strength and claims-paying ability of the issuing insurer. Product features vary by insurer and state.
