What is the average monthly life insurance payment in the US?

Answer 1

This is a very difficult question to answer. Life insurance premiums are calculated on three main factors, they are:

1. Mortality factor: the Death Rate in a given population of the area in which an applicant lives. Companies use these mortality tables to help predict life expectancy and probability of death in any given group.

2.

Interest factor: insurance companies' like their premiums paid annually, so they may invest that premium in an attempt to earn interest. (this interest is one of the ways an insured may lower his/her premium rate)

3.

Expense factor: insurance companies are like any other business, they have operating costs which NEED to be factored in when determining a premium for an applicant. An example of making your premium higher: say instead of the standard annual payment you choose to pay quarterly. The company will then need to pay more people and receive additional charges and bills for collecting your four payments. So in simpler terms, the higher frequency of payments = a higher premium.

There are also smaller factors that are involved in determining a person's premium. These include but may not be limited to:

1.

Age- the older the person, the higher probability of death or disability

2.

Sex/gender- women tend to live longer than men, so their premiums are usually lower

3.

Health- poor health means high chance of death or disability

4.

Occupation- a hazardous job increases the risk of a potential loss

5.

Hobbies- high risk hobbies also increases risk of loss (example: base jumping, gear free mountain climbing, even traveling to dangerous places like Uganda or an uncharted part of the rain forest)

6.

Habits- the classic habit: smoking cigarettes. Habits that can shorten your life span or are dangerous for your health play a big role in premium calculations.

These are just basic factors in determining an applicant's premium there are many more though. I hoped I helped answer your question.