How much does life insurance cost in 2024? Average annual price

The pandemic and inflation, which in recent years have swept through our lives, have also had some positive effect. People have become concerned about their personal risk and financial security, which has led to a greater demand for life insurance at an increasingly younger age.

In 2024, interest in life insurance continues to grow considerably. The most widespread doubt among those considering taking out a policy is always the same: What is the price of a life insurance policy?

 

What is the price of life insurance? Determining factors

The truth is that the annual price of life insurance can vary depending on several aspects. In our article on the best life insurance policies in 2024, we already told you which were the best options in terms of value for money.

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If you need to calculate the price of your life insurance, these are the factors you should consider:

The age of the policyholder

When determining the insurance premium, the age of the insured is one of the main points taken into account.

Generally, the younger the policyholder, the lower the risk for the insurer and, therefore, the more affordable the policy. On the other hand, the older you are, the higher the price of your life insurance policy, because the risk of death increases over time.

It is normal to find three different age groups:

  • Under 35 years of age. Premiums are usually lower due to lower health risk.
  • Between 35 and 55 years old. A gradual increase in rates is usually observed.
  • Over 55 years of age. Premiums may increase more markedly due to the increased risk of illness.

Your profession

On a day-to-day basis, an office worker is not at the same risk as, say, a professional skydiver, firefighter or builder, is he?

That’s why insurance companies may set different prices for your life insurance depending on what you do for a living. If it is a risky job, you will probably pay a little more.

Your life expectancy

Factors such as lifestyle and general state of health influence our life expectancy, and this can have a direct impact on the price of life insurance.

For example, if you have serious illnesses (or have had them in the past), you may face higher premiums.

In 2023, however, a recent development was established for people who have suffered from cancer. If more than 5 years have already passed since their recovery, their insurance conditions will not be tightened thanks to the right to oncological oblivion.

The sum insured

Another important factor affecting the price of life insurance is the sum insured or, in other words, the amount of money the company will pay to beneficiaries in the event of death or disability.

Clearly, if the sum insured is 20,000 euros, the policy will be cheaper than if the sum insured is 250,000 euros, right?

To calculate the amount you want to insure you will need to consider factors such as your outstanding debts and loans (for example, if you are paying a mortgage), the income that would be needed to support your family at your current standard of living, or possible future expenses, such as your children’s education costs.

We recommend that you review and adjust the sum insured periodically, especially after significant events in your life, such as the birth of a child, the purchase of a house or important changes in your income.

Coverage

Choosing the right coverages is essential for a life insurance policy that truly protects your needs and those of your loved ones. But of course, this also affects the price. The more comprehensive the coverages, the higher the premium you will pay for your insurance.

Among the most common coverages are:

  • Death coverage. This is the essential coverage of any life insurance policy, which guarantees the payment of the insured capital in the event of the insured’s death. It is the most economical option.
  • Coverage for death and absolute disability. It provides indemnity in the event of absolute disability, i.e., if it is recognized that the illness or injury suffered by the insured person renders him/her unable to perform any work. This guarantee implies an increase in the price of the policy.
  • Coverage for death and professional disability. It insures a payment if the insured, either due to illness or accident, has his current working capacity reduced or annulled, preventing him from continuing to work in his trade. It is a highly recommended option, although its price is somewhat higher, since it is more frequent.

Other additional guarantees that may be included in a life insurance policy are:

  • Protection against accidents of any kind or traffic accidents. This additional coverage provides extra capital in the event of death or disability caused by a traffic or other accident.
  • Supplementary guarantees. Some policies allow the inclusion of additional guarantees at a discount, such as the inclusion of insurance for children, additional capital for serious illnesses…

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We are your life insurance comparator

AXA, Reale, Zurich, Santalucía… At PIB Group Iberia we know how difficult it can be to choose one type of life insurance or another. That is why we act as an insurance comparator, helping you to evaluate different policies and insurers until you find the one that best suits your needs and your budget.

Whether it’s to protect a mortgage, ensure the welfare of a beneficiary or simply to have peace of mind in the event of unforeseen circumstances, we are here to help you find a life insurance policy that suits you.

Remember that your price may vary depending on your personal circumstances and it is vital to consider all factors before making a decision. Contact our team and we will secure you and your family’s future in the most efficient and affordable way.

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