How Much Does a $500,000 Life Insurance Policy Cost? - PolicyAdvisor
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How much does a $500,000 life insurance policy cost?

SUMMARY

The cost of a $500,000 life insurance policy varies from person to person. Factors like age, gender, health, and lifestyle all influence how much you pay for your policy. The type of policy also matters, with term life insurance costing less than a whole life insurance policy. Find out how much you’re likely to pay for a $500,000 life insurance policy based on age, gender, and policy type.

By Mark Cluett
Director of Content
4 min read
IN THIS ARTICLE

Finding out how much $500,000 of life insurance costs is not a one-size-fits-all answer. Multiple factors determine the cost of coverage, including your age, health, and sex, as well as the type of coverage you take. With that said, half a million dollars worth of coverage may not cost as much as you think. 

If you want to find out immediately how much $500,000 of life insurance would cost for you, go ahead and get a free online quote from us. For more details on pricing and how it’s determined – read on.

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How much does $500,000 of term life insurance cost?

Term life insurance is coverage that lasts for a specific period of time known as – you guessed it – term. That term can be a fixed number of years or until you reach a certain age (e.g. age 65). You pay premiums to your life insurance provider until the expiry of the term.

In return, your beneficiaries will receive a tax-free death benefit if you die within the term of the policy. Once the term ends, your coverage also expires, and you can stop paying premiums.

Term life insurance pricing is based on the length of term, health, age, smoking status, and the amount of the death benefit. For our purposes, we are looking at a death benefit of $500,000.

Learn more about term life insurance.

Term life insurance costs – Male, $500,000 Coverage

Age Non-Smoker Smoker
30 $22.32 $42.30
35 $22.50 $46.80
40 $28.80 $67.95
45 $43.20 $113.40
50 $66.60 $202.05
55 $115.20 $336.15
60 $199.77 $494.55
65 $355.50 $856.80

Term life insurance costs – Female, $500,000 Coverage

Age Non-Smoker Smoker
30 $16.20 $26.55
35 $17.10 $34.65
40 $20.52 $54.00
45 $29.25 $81.45
50 $46.80 $126.62
55 $80.10 $189.86
60 $140.85 $305.20
65 $233.54 $463.25

How much does $500,000 of whole life insurance cost?

Whole life insurance is a form of permanent life insurance that gives a policyholder with coverage from the day their policy is enacted until they pass away; in other words – their whole life. As long as one keeps the policy’s premiums in good standing, the coverage does not expire.

Furthermore, whole life insurance combines this financial protection with investing. Whole life insurance policies have an associated cash value. As one pays into their whole life policy a portion of the premiums are invested and generate cash value.

This cash value is accessible while the policyholder is still living. They can either withdraw from the cash value or borrow against it. Because the coverage lasts one’s entire life and they retain the value put into it, whole life insurance has higher premiums.

Similarly to term  life insurance, whole life insurance pricing is based on the health, age, smoking status, the death benefit, and the added expense of insuring someone’s life for such an extended period of time and potentially their riskiest years.

Learn more about whole life insurance here.

Non-Participating Whole life insurance – $500,000 Coverage

Age Non-Smoker Smoker
30 $257.40 $257.40
35 $322.20 $322.20
40 $391.05 $391.05
45 $522.00 $522.00
50 $631.35 $631.35
55 $832.95 $832.95

Participating Whole life insurance – $500,000 Coverage

Age Non-Smoker Smoker
30 $232.15 $280.93
35 $311.14 $358.93
40 $393.24 $494.11
45 $513.36 $648.07
50 $679.49 $858.35
55 $830.06 $1,037.40
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Why do I need $500,000 of life insurance coverage?

Different personal financial situations dictate someone’s needs for a substantial benefit. While your needs will be unique to yourself and those you are aiming to protect financially, some reasons to contemplate $500,000 of life insurance include:

  • Covering an outstanding mortgage debt, credit cards, or joint lines of credit
  • Cost of living for a partner or dependents left behind
  • Education costs for grown children
  • Covering business partners

If you are not sure if $500,000 life insurance is the right amount for you, there’s an easy way to double check. Head to our life insurance calculator; it takes less than 5 minutes to answer a few simple questions and find out exactly how much coverage you need.

How do I get the best quotes for $500,000 of life insurance coverage?

At PolicyAdvisor, we have helped Canadians compare quotes from 17 of the country’s best life insurance companies and find the right fit for their coverage needs. Book some time with our licensed advisors and find out how easy it is to get the right amount of coverage – from the comfort of your own home.

Need help?
Call us at 1-888-601-9980 or book time with our licensed experts.
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KEY TAKEAWAYS

  • A $500,000 life insurance policy will vary in cost depending on the insured’s age, gender, health, smoking status, and policy type.
  • A term life insurance policy worth $500,000 will generally cost less than a whole insurance policy worth the same amount.
  • A 40-year-old non-smoking male can pay less than $50/month for a 20-year term life insurance policy with a death benefit of $500,000. A whole life insurance policy can cost closer to $400/month.

By Mark Cluett
Director of Content
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