Updated: October 7, 2025
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Life insurance protects your family financially, but compare the pros and cons for your situation before buying a policy.
Alternatives like investments or self-funding provide similar benefits without ongoing premiums.
Ensure you are getting the best rate for your insurance. Compare quotes from the top insurance companies.
If you have financial dependents or long-term obligations, life insurance protects them. It covers expenses like debts, funeral costs and lost income. Already met your financial responsibilities and your loved ones don't need your income? Skip it.
Compare premiums to benefits and pick term or permanent based on your budget.
Life insurance pays your family's bills after you're gone. It replaces your paycheck, covers your mortgage and funds your kids' education.
Your financial responsibilities and dependents determine whether you need coverage. Here's when you do — and when you don't.
Buy coverage during major life changes — marriage, having kids, buying a house or taking on debt. These situations mean people depend on your income.
If your spouse depends on your paycheck, get coverage. Without you, they'll need money for bills.
Buy coverage when you have kids. They'll need money for food, housing and school.
Got a mortgage? Your family still owes that money even after you're gone.
Support aging parents or siblings? They lose your financial support when you're gone.
Life insurance costs money. Skip it in these situations:
No spouse or kids? Life insurance pays other people, not you. Nobody needs your money.
Tight budget with no dependents? Put that money toward rent or groceries.
Nobody relies on your income? You don't need it.
Premiums get expensive as you age. Seniors should check if the death benefit justifies the monthly cost.
Don't need coverage? Put that money toward retirement or emergency savings instead. Still want purchasing a life insurance policy anyway? That's your call, but consider whether those dollars work harder elsewhere first.
Life insurance pays your family after you're gone, not you while you're alive. Want money now? Open a savings account or investment fund.
Only 51% of Americans have life insurance, according to LIMRA's 2025 research. Why? Most people think it costs more than it does, or they're spending money on other things first.
Knowing the advantages and disadvantages of life insurance helps you figure out what works for you and determine whether life insurance benefits align with your financial goals and personal circumstances.
You pay life insurance premiums. The insurer pays your family when you're gone. They use that money for debts, living expenses and bills.
Policy loans reduce your death benefit. Lie on your application? The insurer won't pay if you die within two years.
Learning how life insurance works works helps you determine its value in your financial plan.
Multiple factors determine the cost of life insurance. We gathered quotes from major insurers for healthy, nonsmoking adults to create the table below, showing average costs by age for a $500,000 life insurance policy.
| 10 years | $31 | $369 |
| 15 years | $38 | $452 |
| 20 years | $46 | $551 |
| 25 years | $69 | $826 |
| 30 years | $79 | $946 |
| 35 years | $121 | $1,451 |
| 40 years | $183 | $2,199 |
| Female | $605 | $7,257 |
| Male | $667 | $8,009 |
| Female | $254 | $3,049 |
| Male | $294 | $3,528 |
*All life insurance costs above are based on quotes for nonsmokers with average weight and health ratings. Actual rates will differ based on coverage amounts, policy type and your personal situation.
Finding out if life insurance is worth the cost depends on how much coverage you get for your budget. Comparing personalized quotes shows you real numbers for different policy types, term lengths and coverage amounts.
Use the calculator below to estimate your monthly premiums and evaluate how well different options fit your financial goals.
We’ll give you a suggested amount of cover to buy in just 3 easy steps. — it's free, no personal information required, no spam.
Rates updated:
Oct 14, 2025
Deciding whether life insurance is worth it and what type of policy to get involves considering various factors. These are key to understanding the importance of life insurance and its role in securing your family's financial future.
Younger buyers pay less.
Most insurers require a medical exam. Pre-existing conditions raise your rate or disqualify you.
Add up your debts, mortgage and other bills. Life insurance pays these off so your family doesn't inherit your debt.
Family depends on your paycheck? They'll need it replaced.
Want to use life insurance as an investment? Pick permanent coverage. It builds cash value.
Life insurance comes in many types, but the two main categories are term and permanent. Each serves distinct needs and offers unique features and limitations.
Term life insurance is straightforward but provides no cash value, while permanent life insurance offers a death benefit and functions as an investment tool.
Term life insurance lasts 10, 20 or 30 years. It costs less than permanent insurance but expires at the end. Want to continue? Buy a new policy.
Best for:
Not for:
Term coverage is straightforward and cheap. Die during the term? Your family gets paid. Outlive it? Coverage ends and you buy a new policy.
Many insurers allow converting a term life insurance policy to permanent coverage.
Permanent insurance (whole life and universal life insurance) lasts your entire life if you pay premiums. It includes cash value that grows over time, basically a savings account attached to insurance.
Best for:
Not for:
Permanent insurance includes investment features, but that's not why you buy it. Buy it for lifetime coverage, not returns.
Whole and universal life policies include investment components. They provide a death benefit and build cash value over time — good for long-term financial planning. The catch? Higher premiums than term life insurance. Make sure the investment benefits match your financial goals before buying.Retry
Life insurance isn't the only way to protect your family financially. Here are alternatives based on your needs and goals. Each has trade-offs. Talk to a financial advisor about what fits your situation.
Life Insurance Alternative | Description |
|---|---|
Life Insurance vs. Investing | Stock market investing or mutual funds often return more than life insurance cash value. The downside? You could lose money. |
Health Insurance | Some health insurance policies include living benefits that pay out for chronic or terminal illnesses. Health insurance complements or replaces life insurance. |
Self-Funding | Building a strong savings account or emergency fund sometimes makes life insurance unnecessary. This requires disciplined saving and substantial income to accumulate enough funds to support your family. |
Real Estate | Rental property generates monthly income. Property values go up over time, building wealth. |
Annuities | Annuities pay monthly income, usually after retirement. Your spouse or kids get steady payments after you're gone. |
Life insurance offers tax benefits and guaranteed payouts to dependents, advantages stocks and bonds don't provide. Investments grow wealth but don't guarantee your family gets anything.
Understanding this difference helps you decide if life insurance fits your financial strategy for estate planning or protecting your family's future.
Get life insurance if someone depends on your paycheck — a spouse, kid or aging parent. The death benefit pays debts, living expenses and long-term costs like college or housing.
Young and healthy? Term coverage gives you protection without breaking the bank. Financially independent with no dependents? You don't need it. Look at your situation before buying, or talk to a financial advisor.
Life insurance raises a lot of questions. Here are answers to the most common ones.
Depends. Do people rely on your paycheck? Then it’s worth considering.
Term coverage lasts 10 to 30 years and is a cost-effective choice compared to permanent insurance. It's perfect for temporary needs like a mortgage or paying for kids' college. Compare the premium to your budget and coverage needs.Retry
Permanent insurance offers long-term security and additional financial benefits. It lasts your entire life and builds cash value. Borrow against that cash or use it for premiums. Planning long-term? It builds wealth alongside the death benefit.Retry
Universal life lets you adjust premiums and benefits as your life changes, perfect if your income fluctuates.
Life insurance pays your family's bills after you're gone — mortgage, college tuition, groceries. Without it, your loved ones face financial hardship.
They want their family to have money for bills and debts after they're gone.
The decision to get life insurance depends on your situation. Do you have dependents, a mortgage, debts or family relying on your income? Get coverage. Factor in your age, health and goals.
No. Life insurance protects your family, it doesn't grow wealth like stocks. Some policies (whole life, universal life) build cash value, but they cost more and return less than mutual funds or index funds.
Buying life insurance at 30 makes sense if you're starting a family or have debts. You'll lock in lower premiums, a major advantage of buying young.
Life insurance after 50 makes sense for managing estate taxes, covering final expenses and providing for dependents. It secures your beneficiaries' financial future.
No, unless you have big debts or want to leave money to charity or family. It also covers funeral and burial costs — about $10,000 on average.
Determining the right coverage amount depends on your financial obligations, your dependents' future needs and your income. Buy 10 to 12 times your annual salary. Earn $50,000? Get $500,000 to $600,000 in coverage. This pays your mortgage, covers living expenses and funds college tuition.
Coverage duration depends on the type of policy. Term life insurance covers a set period like 10, 20 or 30 years, while permanent life insurance provides lifelong coverage.
Cancel when nobody depends on your income anymore, or when you've saved enough to cover your family's needs without the death benefit.
Yes, if losing one paycheck hurts financially. Most two-income families need both salaries for bills and savings goals.
Yes, your spouse relies entirely on your income, making life insurance essential to replace those earnings if you die.
Not if your spouse has enough retirement income and savings. Some retirees keep coverage to leave money to kids or cover estate taxes.
Anyone with financial dependents or big debts.
Parents, married couples, homeowners with mortgages and people supporting aging parents need it most.
Business owners and people with estate planning needs should get it too. No dependents? You only need it for big debts, funeral costs or leaving an inheritance.
Life insurance pricing varies dramatically based on your personal profile, making generic industry averages useless when you're trying to budget for coverage.
We collected real quotes across different ages, health profiles and coverage types so you can see what you'd actually pay—not what some statistical average might suggest.
Our Research Approach
We gathered 248,399 life insurance quotes to show realistic pricing for different situations. Our quotes come from major insurers and reflect what actual applicants see when they apply for coverage.
Sample Customer Profile
We used standard profiles to obtain quotes:
These profiles represent typical applicants and help you estimate where your own rates might fall.
Coverage Types and Terms
We collected quotes for the policies people actually buy:
This comparison shows how much permanent policies cost versus term coverage, helping you decide whether cash value features justify the higher premiums.
What the Data Shows
Beyond individual quotes, we identified pricing patterns across demographics. These trends reveal how rates shift based on age, health status and coverage amount—information that helps you understand your own likely costs.
Why This Methodology Works for You
Your life insurance rate depends heavily on personal factors like age, health and gender. By analyzing quotes across multiple profiles, we provide realistic rate expectations rather than oversimplified averages. You can see how someone similar to you would be quoted and budget accordingly.
Data Recency
All pricing and company information was last updated in 2025, ensuring current market rates inform our analysis and recommendations.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
