It is one of the most common doubts: how much does life insurance cost? There are several factors that determine the price, so it varies according to each person. Of course, it is much less money than you imagine and we will tell you why.
The function of risk life insurance is to protect us against any unforeseen event. If something happens to us, our beneficiaries (or ourselves) will receive compensation to cover the expenses that arise. It is a very useful product for anyone: if you live alone, if you have a family, if you have a mortgage... But how much does life insurance cost?
Factors that influence the price
Two people will pay different prices for the same policy. Insurers take into account various aspects to establish the exact premium. Therefore, to know how much life insurance costs, you have to consider these aspects:
-
Your age
The chances of something happening to us grow with the years. That's why younger people pay less for their policies: they're less likely to need them.
The price goes up a little every year
Since age is one of the factors that determine the price, the premium adapts over time. This happens with renewable temporary life insurance, that is, those that are updated and paid year after year.
To give you an idea, a 30-year-old man has a probability of dying of 0.3 per 1,000, according to the National Statistics Institute (INE). In other words, less than one man out of 30 out of every 1,000 in Spain dies. In contrast, for someone 45 years old, the probability is 0.8 in 1,000, almost three times more. Obviously, it is still a very small risk, which is why the price of the premium will remain low.
-
The capital you want to insure
The more money you want your beneficiaries to receive if something happens to you, the more fee you will have to pay. Therefore, it is cheaper to take out insurance for 60,000 euros than one for 250,000.
Keep in mind that the cost of living grows as time goes by: 20 years ago, more things were bought with 100 euros than now, right? For this reason, it is important to update the capital of the policy from time to time. That, therefore, will also drive up the price.
-
The coverages that you add to the policy
You can take out traditional life insurance, which compensates the beneficiaries only if you die. But you can add other coverage, such as coverage in case of disability or dependency, including the option of receiving double money in the event of an accident... The more complete the product, the more the price will rise.
Likewise, you can change the coverage of the policy whenever you want. If you decide to extend them, the price will be adjusted to include those new services.
-
Other factors that increase the risk of death
Law 50/1980 establishes that the insurer must know all the circumstances that affect the risk. Therefore, they will ask you some questions about your health and if you do any extreme sports or have a risky profession. You should always answer truthfully; If something happens to you for any of these reasons and you lied, the company can deny you compensation.
Taking out life insurance is cheaper than ever
We have never lived as many years as now. The average life expectancy of Spaniards is 83 years, the best figure in history. In turn, the risk of dying unexpectedly has been greatly reduced over the years. For example, in 2018 insurers fixed more than 4 million vehicles (according to Unespa); instead, only 60,000 families need to collect life insurance each year.
These data have made policies much cheaper: it is unlikely to need them. Although they protect us from a great risk, the cost for a family is very low.
Protect yourself for less than the cost of a dinner
If you wonder how much life insurance costs, the simplest thing is to do a simulation on our comparator. You just have to insert your age and the capital you want to hire. The platform will show you the best prices of the main insurers so you can get a rough idea.
For example, a 30-year-old person who wants to insure 100,000 euros can do so from 46 euros a year. Less than it costs to go out to dinner with the family! If you prefer 250,000 euros, the price goes up from 110 euros per year. A 50-year-old person will be able to insure the same capital from 250 and 614 euros per year.
Remember that adding other coverages will change the price; In our comparator you can see at a glance the difference between contracting disability, double capital for an accident or triple for a traffic accident. For example, a 30-year-old will be able to add disability to their €100,000 insurance for just €24 more.
No comments yet