The insurance company pays if certain conditions are met (which, in the case of life insurance, means you pass away). You pay a premium based on the amount of coverage you buy and other factors. If you have a good understanding of how car, renters, or homeowners insurance works, then term life insurance should be pretty easy to grasp. That’s not a typo! Term life insurance often costs just a fraction of whole life insurance. Another June 2023 study by Policygenius shows that the average cost of whole life insurance for the same healthy 35-year-old ranges to $571 per month. According to a June 2023 study by Policygenius, the average term life insurance cost is approximately $30 per month for a healthy 35-year old seeking $500,000 in coverage and a 20-year term.
Term life insurance is often dramatically cheaper than whole life insurance. Term life insurance benefits Significantly cheaper Beneficiary usually does not receive the cash value.
