How much is a $500,000 life insurance policy?

Mom happily snuggles with her two young daughters

Most things that are worth $500,000 cost $500,000, but that’s not the case with term life insurance. A policy worth half a million bucks doesn’t cost anywhere near that much – wouldn’t it be great if we could say that about more things?

As for what it does cost, there are two definitive answers to the question: the first is, “It depends, but it’s easy to find out.”

The second: “a lot less than you probably think.”

The easiest way to get an idea of how much a $500,000 life insurance policy costs is to use a free online quote tool. But, we’re also here to provide you with some useful pointers in your quest for coverage.

Who really needs a $500,000 life insurance policy?

Before getting into the price, it’s worth asking who actually needs a $500,000 policy. A common rule of thumb is to have coverage that’s 5 to 10 times your annual salary. That would suggest that a $500,000 policy could be right for someone who earns between $50,000 and $100,000 a year. The reason for the broad range is that your exact policy needs depend on the age and quantity of your dependents, as well as other factors, like what debts you have and your partner’s income.

Nonetheless, for many people, the rule of thumb is a useful starting point. If you’re the type who likes your life insurance needs a bit more personalized to you (most people do), you can also use an online life insurance calculator. It’ll take into consideration your family structure and financial situation to provide a recommendation for face amount and term length.

Factors that impact the price of a $500,000 policy

The price you pay for life insurance is affected by several different factors, some of which you can’t control (women generally pay less than men), and some of which you can. Three key factors are your health, your age, and the length of the term:

Term length

The longer you want coverage for, the more it costs. A 35-year man in good health, non-smoker, looking for $500,000 of coverage will pay:

  • Approximately $24 a month for a 15-year policy
  • Around $32 a month for a 20-year policy
  • Approximately $49 a month for a 30-year policy

So does this mean you should get a 10-year policy instead of a 20-year policy and save yourself some cash? Almost certainly not. The length of your term should be based on the amount of time your dependents will need coverage. If you have young children and want to make sure they’re looked after financially if you die unexpectedly, that means you’ll need a longer policy than if you just have a few lingering debts that you expect to pay off in the next ten years.

Additionally, this is when the discussion of term versus whole life insurance comes into consideration. Permanent policies (like whole and universal life) offer coverage that lasts a lifetime as well as a cash value component that can grow over time. However, these policies can be cost prohibitive compared to term policies.

A 30-year-old woman in excellent health would pay about $37 per month for a 30-year, $500,000 Haven Term policy issued by MassMutual. A $500,000 whole life insurance policy for that same woman would be about $411 per month [Source: State Farm].

We have your back (and MassMutual has ours)

The Haven Term policy is issued by MassMutual, an industry leader with over 160 years of experience.

Why Haven Life


The bottom line is… the better your health, the less you pay. Take the example of a 35-year-old woman looking for a 20-year, $500,000 policy:

  • With excellent health, she pays around $20 a month.
  • With average health, she pays approximately $44 per month

In life insurance (as in life itself), smoking has an impact. If that same woman smokes:

  • With good health, she pays around $77 a month
  • With average health, she pays approximately $105 a month


The younger you are, the less you’ll pay for life insurance, which is a strong argument for getting it sooner, rather than later. The price of a policy goes up for every year that your age increases. For example, a man in excellent health, non-smoker, looking for a 20-year, $500,000 policy:

  •    If he’s 35, he’ll pay around $24 a month
  •    If he’s 45, he’ll pay approximately $56 a month.

As for the amount of coverage you should get: even though $500,000 sounds like a lot of money, you may well find that you need that much. The price for a policy will vary according to your individual circumstances, but it’s easy to find out that number, and one of the great things about life insurance is that you don’t get what you pay for – you get more by way of peace of mind.

Why Haven Life?

The answer to that question is easy (which is exactly how Haven Life makes applying for term life insurance)

Learn more

Michael Davis is a freelance writer and editor who has covered everything from fashion and music to parenting, work, and finance. He has been a chef, restaurateur and record label owner.

Haven Term is a Term Life Insurance Policy (DTC 042017 [OK1] and ICC17DTC in certain states, including NC) issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001 and offered exclusively through Haven Life Insurance Agency, LLC. Policy and rider form numbers and features may vary by state and may not be available in all states. In NY, Haven Term is DTC-NY 1017. In CA, Haven Term is DTC-CA 042017. Our Agency license number in California is OK71922 and in Arkansas, 100139527.

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