Most Americans know that life insurance is an important financial tool that can provide economic stability. Yet, only half of Americans have a life insurance policy or they don’t know if they have it or not.

There are several reasons why Americans don’t have life insurance. They don’t fully understand it. They think they don’t need it because they’re younger. They’re also afraid of the extra costs.

Life insurance does have a cost, but it’s well worth it because it can provide so much.

What’s the average life insurance cost per month?

Read on to find out.

The Average Life Insurance Cost Per Month

There isn’t an answer that will fit your situation. Factors like age, sex, health, location, coverage amount, and the type of insurance policy will impact the monthly cost.

One estimate says that the average cost of health insurance is $44 a month. That doesn’t mean that’s what you’ll pay.

If you’re a man in your 50s and you’re overweight, you can expect to pay more. Men have higher life insurance rates than women because they tend to live longer.

A healthy person will pay less than a person with a chronic health condition. That’s because the insurance company is going to have to pay that out more for the person with chronic health conditions.

The policy amount will also affect the price. You should carry anywhere between 6-10 times your salary. If you make more money, expect to pay more for life insurance.

Whole Life Insurance vs. Term Insurance

There are two types of insurance policies that you will have the option to purchase. These are whole life insurance and term life insurance. They have different price points and features that you should know about before you get a policy.

Term life insurance covers you for a specific period of time, called a term. A term can be anywhere from 5-30 years. Your premium stays the same during the term, as does the payout to your beneficiaries.

If you die before the term expires, then your beneficiaries will receive a death benefit. If you don’t die before the term ends, then you lose the premiums you paid into the coverage.

Your policy is likely to have a rider that will allow you to convert your term policy into another policy. This is something that you need to check before you sign up.

Whole life insurance is more expensive than term life, but there’s a good reason for it. Your policy will build cash value, which continues to grow with taxes deferred.

Because your life insurance policy has cash value, you can take out loans against the policy. The other reason why people prefer to have whole life insurance is that the payout benefit doesn’t expire. You can live for another 50 years and still get a death benefit.

This is a great option if you want to build wealth or protect the wealth that you have from estate taxes.  

Benefits of Life Insurance

You have to weigh the costs of life insurance against the benefits of having a policy. If you don’t have a life insurance policy, your family is responsible for your medical bills and burial costs.

This can be a huge financial burden on many families, especially considering that most people live paycheck to paycheck. One study found that about 62% of families without life insurance would face financial issues if the main earner died. This unexpected cost could create a lot of stress when your family is grieving.

This is something that you need to think about now, whether you’re single or you have a young family. You can give your loved ones peace of mind.

You Can Leave an Inheritance

Most families are just getting by financially. That means there are fewer opportunities to pass down generational wealth. You can use life insurance policies to pass money down to your beneficiaries.

This is usually why people will opt to have a whole life insurance policy, rather than term life.

Getting Life Insurance for Expats

There is a growing sector of the population that is moving around and living abroad. It’s estimated that there are close to 9 million expats. They may be digital nomads, retirees, or living abroad for a new adventure.

If you’re in this category, you need to have life insurance. There are many instances where a person dies abroad and they didn’t have life insurance coverage, or they had the wrong kind of coverage.

There are two possibilities to get life insurance. Which option depends largely on your place of residence. Insurance carriers will only cover you in the place where you actually live.

So, if you claim residency in the United States but live in the UK, you’ll need to work with an American company.

If you have a residence in the UK and live there full time, you’ll need to find a company based in the UK. Which is the best life insurance company in UK? It depends on what your needs are.

You Can Bear the Cost of Life Insurance

Going through life without a life insurance policy is a big risk to your family and loved ones after you pass away. You know that life insurance can give your family peace of mind and build wealth. Don’t let the cost of life insurance get in the way.

What’s the average life insurance cost per month? It’s surprisingly affordable. Many people pay less than $50 a month for basic term coverage. You could pay much more depending on the amount of coverage, the type of policy, your age, and your sex.

In the end, a good life insurance policy is well worth the cost. For more great articles and useful tips, visit the Useful Tips section of this site.