How Much Should I Be Paying For Life Insurance? 
The amount that someone should be paying for life insurance depends on a multitude of factors . Some of those factors are : 1 -RRB- The length of the policy . Generally speaking , the longer your premium is locked in , the higher your term life insurance premium will be . Also , permanent policies usually cost more than term policies . However , getting a new policy every 10 years can end up costing more than locking in one policy for 30 + years . So you have to look at the big picture and the purpose of your life insurance in order to determine which is more cost effective for you . 2 -RRB- Your age . Premiums go up with age . 3 -RRB- Your health and other risk factors . Having a health condition , family history of early heart disease , dangerous hobbies , and other risk factors can all affect the price of your life insurance . 4 -RRB- The type of policy you get . If you want to build up cash value in your policy -LRB- such as Whole Life or Indexed Universal Life -RRB- it will cost more than a Term policy that has no cash value . However , even policies of exactly the same type will vary in price depending on the carrier you buy them from or whether or not you get an exam -LRB- generally , but not always , No Exam policies cost more than those requiring full medical underwriting -RRB- . It is important to shop with an ethical broker who can find you the lowest price but also the type of policy that works best for your needs . 5 -RRB- Your financial situation . Persons with higher incomes and estate values may want to spend more on their life insurance coverage than those struggling to have a good quality of life on a low income . Insurance calculators can help you determine how much insurance you need , which will in turn help you arrive at an affordable price 