Everyone knows that insurance can be expensive, but the coverage is generally well worth the price. When talking about life insurance, the price that you pay is buying you the peace of mind that your family will be taken care of when you're gone. While the average life insurance policy provides around $100,000 worth of coverage, the cost that people pay for that coverage can vary greatly from one insurance provider to the next. The national average price of a term life insurance policy is $500 per year, but the actual amount that you pay depends on several factors.

Obviously, the amount that you will pay will depend on the amount of coverage that you seek to buy. Insurers may also look at your overall health, age, gender, and your occupation (though as competition rises many insurers are beginning to offer coverage with no initial medical examination.) The more coverage you wish to buy or the more risk you have in your everyday life, the higher your average insurance quote will be.

Another major factor in what you'll be paying for insurance is whether you are looking to buy whole life or term life insurance. Term life policies, which pay out if the insured passes away before a pre-set date, are on average significantly less expensive than whole life policies for a similar amount of coverage. Whole life policies cost more because they cover your entire life, while term life insurance policies are designed to provide you with insurance for just the specified period of time that you need it.

The average amount that you'll find quoted from insurance providers in your area may also differ from the national average depending on where you live. Areas with a higher cost of living rate will also tend to have higher average insurance rates, while insurance agencies in locations with a much lower cost of living also generally charge a bit less. Larger cities with more competing agencies may have a number of lower-cost options as well due to each agency trying to bring in more business by offering low rates.

Because there are so many things which can cause the amount that you pay for coverage to deviate from the national average, it's important that you take the time to shop around. Compare quotes from different life insurance providers in order to find the best rate on the coverage you buy.