Life insurance often raises the question—what’s it really for? Here’s how I look at it as someone who helps clients in Austin find coverage that fits. For a healthy 30-year-old non-smoker, a 20-year term policy at $500,000 typically costs between $25 and $40 per month. The biggest factor in your premium is age: at 40, you’re likely paying about double what you would at 30. Smokers, on the other hand, can expect rates two to three times higher. Term life insurance is designed to keep your costs straightforward, while permanent policies build cash value but come with higher fees, front-loaded commissions, and early surrender charges. They offer lifelong coverage, but at a much steeper price. The most cost-effective approach I see for many families is to maximize term coverage when your financial responsibilities are at their peak, then reduce coverage as debts are paid off and children become independent. It’s smart to review your coverage every five years to make sure it still fits your needs. Ultimately, life insurance is about risk transfer—not investing. Your premiums provide certainty for your loved ones while supporting the claims process, operating costs, and the company’s financial reserves.
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