Narrow down life insurance companies by coverage levels, riders offered, medical exam requirements and more to get a quote for a $500,000 life insurance policy.
Before you choose a life insurance policy, take some time to add up your financial obligations — realistically. Do you have dependents that rely on your income? Do you have a large amount of debt that would fall onto someone else if you passed suddenly?
What about funeral costs? Consider all of these and more before choosing the size of your life insurance policy. For many, a $500,000 policy gets the job done at an affordable monthly cost.
What’s more, if you’re earning around $50,000 a year, this policy can protect your income if something happens to you, and at a surprisingly affordable price.
Rates are on the lower end for policies around $500,000, especially if you’re young, healthy and a non-smoker. The average cost of a 20-year term, $500,000 policy for a healthy 30-year-old is $22.54 a month for a man and $19.11 for a woman. Expect your rates to differ based on your gender, age, health, lifestyle, occupation and the policy length you choose.
| Age | Man | Woman |
|---|---|---|
| 18 | $24.20 | $19.31 |
| 20 | $22.83 | $18.42 |
| 25 | $21.96 | $18.49 |
| 30 | $22.54 | $19.11 |
| 35 | $24.34 | $20.81 |
| 40 | $32.36 | $27.91 |
| 45 | $50.25 | $41.30 |
| 50 | $78.14 | $61.46 |
| 55 | $127.51 | $92.66 |
| 60 | $228.63 | $162.88 |
| 65 | $423.78 | $307.44 |
*Rates are provided by Quotacy and valid as of 2021 in all states except Montana
There are two policy options: term and permanent. Term life insurance covers a set period of time, with the most common terms being 10, 15, and 20 years. In some cases, you can choose a five-year term, or even a 30-year term, depending on the insurer.
For lifelong coverage, look into a permanent life insurance policy worth $500,o000 — and your policy will double as an investment product.
Yes — if you can prove you have the income to support that level of coverage. Most insurers will approve you for a policy that’s 10 to 20 times your salary. So if you earn $50,000 a year or more, you’ll likely qualify for a $500,000 policy.
Along with your salary, insurers look at your age when determining your eligibility for a $500,000 policy. The younger you are, the better your position. The insurer assumes your salary and financial responsibilities will increase as you age, and they know your risk of dying during the term of the policy is lower.
If you’re a student, stay-at-home parent, self-employed or unemployed, you may have a harder time securing half a million dollars in coverage — but it’s not impossible.
Yes, you can typically waive the medical exam with a simplified issue or guaranteed issue life insurance policies, but it’s not as common with this much coverage.
The general rule of thumb is to buy a policy that would replace your income — and therefore cover your family’s cost of living — for five to 10 years. If you’re earning around $50,000 a year, you might be a good candidate for a $500,000 policy.
Along with income, consider your financial obligations. To find that figure, think about everything you pay for now and what you’d be expected to pay for in the future. This might include a mortgage, student or car loans, credit card debt, college costs, and business expenses.
When your financial responsibilities hit the $500,000 mark, you’re in the right market for half a million dollars of coverage.
When you’re doing the math, consider:
When your circumstances change, re-evaluate your coverage. If you find that your financial obligations and assets are now over $500,000, it’s worth looking into laddering policies for extra protection.
However, your policy should meet your financial situation and needs, not exceed them. If most of the above points don’t apply to you, you may not need $500,000 of coverage.
Life insurance is personal, so it’s up to you to do the math. If your living expenses and debt come to half a million dollars, it’s worth looking at a $500,000 policy.
Think about your salary, too. For those who take home $50,000 a year, this policy can offer the protection you might need.
If you’re not sure if $500,000 is the right amount of coverage, it never hurts to compare life insurance options until you find the right one for you.
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