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BLOG 09/14/2018

Your complete guide to life insurance pricing


Life insurance pricing can be confusing. When you’re shopping for a policy, understanding what goes into your insurance quote can help you pick the plan that meets your needs and budget. Here’s an inside look at how it all works.

What is the average life insurance cost per month?

While the total cost depends on factors like age, gender, and other personal information, it’s actually much less expensive than most people think. In fact, millennials overestimate the price of life insurance by as much as five times

Take a look at a few example quotes for term life policies through eFinancial ($250,000 in coverage for 10 years): 

  • Frank, a 31-year-old smoker in good health: $13.91 a month.
  • Janie, a 45-year-old non-smoker in fair health: $21.32 a month. 
  • Britt, a 26-year-old non-smoker in excellent health: $12.18 a month. 

How do life insurance companies price my policy?

Most life insurance companies follow these steps to determine if you’re eligible and how much your life insurance will cost: 

  1. Understanding your needs
  2. Gathering information about you and your lifestyle
  3. Offering you a quote 
  4. Underwriting your policy 
  5. Finalizing the purchase 

Get a closer look at each step in our pricing infographic below. Your family (and your wallet) will thank you.