HOW MUCH IS THE AVERAGE LIFE INSURANCE PER MONTH?

Life insurance provides a financial safety net that you’ll potentially be paying premiums for decades. That’s why it’s important to understand the cost of your coverage. A lot of Filipinos don’t have life insurance even though they need it.

Life insurance is one type of insurance that will certainly pay off if you keep it long enough. Life insurance is surprisingly affordable, but the cost varies based on the specific type of life insurance. The average per month cost for a single policy per month ranges from P2,000 to P5,000 for a universal life policy. 

But, life insurance isn’t one-size-fits-all. While an average per month amount can give you an idea of what you’ll pay, there are many factors that go into life insurance on top of the type of coverage, like age, where you live, and other personal factors. Life insurance rates can vary dramatically among applicants, insurers, and policy types. Here are some factors on what life insurance companies look at to determine your life insurance average per month.

Your Health

Our best bet to lock in cheaper rates is to purchase a term life insurance policy, where the premiums remain the same throughout the entirety of the policy, while you’re young and in good health.

In general, the healthier you are, the cheaper your premiums. Insurers typically class applicants using terms like super preferred,standard, with super, preferred being the healthiest category. Insurers then calculate premiums based on your risk class.

Your Age

Your age can also significantly affect premium costs. The older you are, the more likely you are to die soon, which means life insurers view you as a bigger risk. That’s why it’s wise to buy life insurance as early as possible; the longer you wait, the more your rates will increase based solely on age.

The term life insurance quotes below are for a 20-year term life insurance policy with a death benefit of P1,000,000. Through this, you can see that the increase in monthly premiums as you age is much smaller if you are young, compared to when you are older. For example, the average life insurance quote only increases by 4% between ages 25 and 30, but it jumps much higher between ages 60 and 65 — an average increase of 86%.

Your Gender

You’ll also find differences in pricing based on gender, though these are often reflections of age. Because they have longer life expectancies, women will almost always pay less than men of the same age and health. According to the Centers for Disease Control and Prevention, life expectancy in the Philippines is 81.2 years for women and 76.2 years for men.

If you’re looking for life insurance,there are dozens of companies, term length and coverage amounts to choose from. Price will no doubt factor into your decision and may even determine what type of policy you choose. For a snapshot of prices, visit the Manila Bankers Life Insurance website and look for the life coverage that best suits you.