Coverage amount. More coverage costs more. The relationship is not purely linear — the cost per thousand dollars of coverage typically decreases slightly at higher face amounts. A $1 million policy does not cost exactly twice as much as a $500,000 policy from the same carrier.
Term length. A 30-year term costs more than a 20-year term for identical coverage and applicant. Lincoln Financial charges approximately $52 per month for a 30-year term at $500,000 for a healthy 40-year-old; the same carrier’s 20-year rate is approximately $35–$38 per month. The longer the coverage period, the higher the actuarial risk and the higher the premium.