What Factors Determine Your Mortgage Life Insurance Cost Per Month?
Age at application. Life insurance actuaries calculate your premium primarily on your age at the time of application. A 30-year-old and a 50-year-old applying for identical coverage on the same day will pay dramatically different premiums. A 30-year-old male pays approximately $23 per month for $500,000 in 20-year term coverage; the same coverage at age 50 costs approximately $69–$91 per month. Every year you delay application, your premium for the same coverage rises. Applying the day you close on your home is the single most cost-effective timing decision.