How Much Does A $5000 Life Insurance Policy Cost?
Many people choose $5,000 life insurance policies to relieve their families from worrying about funeral and burial expenses. These policies are budget-friendly and help cover important final costs.
Thanks to their lower premiums and easier approval processes, these smaller policies are perfect for those not in great health or looking to keep expenses low.
If you’re looking to decide on $5K of coverage, this guide will show you:
- What your options are
- How much you’ll pay
- Which companies are best
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Types Of $5,000 Life Insurance Policies
When looking into getting $5K in life insurance coverage, you have a couple of good options:
- Simplified Issue Whole Life Insurance
- Guaranteed Issue Whole Life Insurance
Simplified Issue Whole Life Insurance
Simplified issue whole life insurance provides coverage that lasts your entire life, with no medical exam needed. This coverage builds cash value over time.
Pros: No medical exam required, fixed premiums, and strong cash value growth over time.
Cons: On a coverage per dollar basis, you would pay less if you got higher amounts of coverage
Guaranteed Whole Life Insurance
Guaranteed Issue Whole Life Insurance offers a $5,000 death benefit to anyone who’s eligible by age and state of residence. This option is your safety net when other policies seem out of reach. It doesn’t ask you to pass a medical exam or complete lengthy health questionnaires.
Pros: No health check whatsoever; allows those who cannot qualify for traditional policies to cover their families
Cons: High premiums, two-year waiting period.
How Do Life Insurance Companies Decide Your Cost?
Life insurance companies want you to live a long time.
Why? So they don’t have to pay out a big lump sum of cash!
People who make them pay out cash soon (i.e., pass away soon) get declined or get higher rates. And if they get to keep their money for years (i.e., you live a long life), they can’t wait to have you, and will charge you a low rate to win you over.
Factors Affecting Life Insurance Costs
| Factor | Impact on Cost |
| Age | Younger applicants pay less because they have more years ahead to contribute premiums. |
| Health | Good health means longer life expectancies and qualifies you for lower rates. |
| Gender | Women statistically live longer and enjoy lower rates than men. |
| Lifestyle | Hazardous habits like smoking can drive up your premiums. |
| Occupation | Working in high-risk environments will result in higher rates. |
| Policy Type | Whole life insurance policies have higher prices due to their indefinite coverage period. |
| Length of Term | The longer the term of the policy, the higher the premiums you pay. |
Check Out: How much is $25,000 of life insurance?
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How Much Does A $5K Policy Cost?
Curious about the cost of a $5,000 life insurance policy?
The important thing is that you are getting the facts – surveys suggest that most individuals overestimate the cost of life insurance by several hundred percent.
The Cost of a $5,000 Simplified Issue Whole Life Insurance Policy
How much is a $5k simplified issue whole life insurance policy?
The tables below show an age-by-age breakdown of the cost of 5000 of whole life insurance for individuals between the ages of 45 and 89.
How Much Is $5000 of Life Insurance For Men?
For male non-smokers, premiums rise gently from age 45 to 70, starting from a lower base. You might see costs beginning around $16 monthly at age 45, gradually increasing as you age. The climb in rates becomes steeper for those in their later years, underscoring the increased risk and costs for insurance companies to provide coverage as clients age, with cost reaching $172 at age 89
| Men | Male (Smoker) | |
| Age 45 | $14.62 | $18.70 |
| Age 46 | $15.41 | $19.95 |
| Age 47 | $16.20 | $21.20 |
| Age 48 | $16.99 | $22.45 |
| Age 49 | $17.78 | $23.70 |
| Age 50 | $18.53 | $24.99 |
| Age 51 | $19.28 | $25.49 |
| Age 52 | $20.03 | $25.99 |
| Age 53 | $20.78 | $26.49 |
| Age 54 | $21.53 | $26.99 |
| Age 55 | $22.32 | $27.49 |
| Age 56 | $23.20 | $28.82 |
| Age 57 | $24.07 | $30.15 |
| Age 58 | $24.95 | $31.49 |
| Age 59 | $25.82 | $32.82 |
| Age 60 | $26.74 | $34.15 |
| Age 61 | $27.32 | $35.57 |
| Age 62 | $27.91 | $36.99 |
| Age 63 | $28.49 | $38.40 |
| Age 64 | $29.07 | $39.82 |
| Age 65 | $29.57 | $41.23 |
| Age 66 | $30.99 | $43.98 |
| Age 67 | $32.40 | $46.73 |
| Age 68 | $33.82 | $49.48 |
| Age 69 | $35.24 | $52.23 |
| Age 70 | $36.65 | $54.98 |
| Age 71 | $39.40 | $59.39 |
| Age 72 | $42.15 | $63.81 |
| Age 73 | $44.90 | $68.22 |
| Age 74 | $47.65 | $72.64 |
| Age 75 | $50.40 | $77.05 |
| Age 76 | $54.06 | $83.97 |
| Age 77 | $57.73 | $90.88 |
| Age 78 | $61.39 | $97.79 |
| Age 79 | $65.06 | $104.71 |
| Age 80 | $68.72 | $111.62 |
| Age 81 | $74.05 | $121.78 |
| Age 82 | $79.38 | $131.95 |
| Age 83 | $84.72 | $142.11 |
| Age 84 | $90.05 | $152.27 |
| Age 85 | $95.38 | $162.44 |
| Age 86 | $114.54 | $190.42 |
| Age 87 | $133.70 | $218.41 |
| Age 88 | $152.86 | $246.40 |
| Age 89 | $172.01 | $274.39 |
What about smokers looking for a $5,000 policy? Male smokers can expect to start with slightly higher premiums of $18 at age 45. The rate of increase over time is sharper, reflecting the higher health risks associated with smoking reaching $274 at age 89.
How Much Is $5000 of Life Insurance For Women?
| Female | Female (Smoker) | |
| Age 45 | $13.41 | $18.24 |
| Age 46 | $13.74 | $18.95 |
| Age 47 | $14.08 | $19.66 |
| Age 48 | $14.41 | $20.37 |
| Age 49 | $14.74 | $21.07 |
| Age 50 | $14.99 | $21.87 |
| Age 51 | $15.54 | $22.03 |
| Age 52 | $16.08 | $22.20 |
| Age 53 | $16.62 | $22.37 |
| Age 54 | $17.16 | $22.53 |
| Age 55 | $17.78 | $22.74 |
| Age 56 | $18.53 | $23.53 |
| Age 57 | $19.28 | $24.32 |
| Age 58 | $20.03 | $25.11 |
| Age 59 | $20.78 | $25.91 |
| Age 60 | $21.45 | $26.66 |
| Age 61 | $22.07 | $27.57 |
| Age 62 | $22.70 | $28.49 |
| Age 63 | $23.32 | $29.40 |
| Age 64 | $23.95 | $30.32 |
| Age 65 | $24.57 | $31.24 |
| Age 66 | $25.57 | $32.90 |
| Age 67 | $26.57 | $34.57 |
| Age 68 | $27.57 | $36.24 |
| Age 69 | $28.57 | $37.90 |
| Age 70 | $29.57 | $39.57 |
| Age 71 | $31.24 | $42.07 |
| Age 72 | $32.90 | $44.57 |
| Age 73 | $34.57 | $47.06 |
| Age 74 | $36.24 | $49.56 |
| Age 75 | $37.90 | $52.06 |
| Age 76 | $40.40 | $57.14 |
| Age 77 | $42.90 | $62.23 |
| Age 78 | $45.40 | $67.31 |
| Age 79 | $47.90 | $72.39 |
| Age 80 | $50.40 | $77.47 |
| Age 81 | $53.81 | $83.13 |
| Age 82 | $57.23 | $88.80 |
| Age 83 | $60.64 | $94.46 |
| Age 84 | $64.06 | $100.13 |
| Age 85 | $67.47 | $105.79 |
| Age 86 | $83.80 | $125.53 |
| Age 87 | $100.13 | $145.28 |
| Age 88 | $116.45 | $165.02 |
| Age 89 | $132.78 | $184.76 |
Simplified Issue Whole Life Insurance Policy for women aged 45-89, with separate rates for smokers and non-smokers. Premiums start at $13 for a 45-year-old non-smoker, gradually increasing with age, and for smokers, reaching $184 for an 89-year-old smoker.
The Cost of a $5,000 Guaranteed Issue Whole Life Insurance Policy
Let’s explore the cost of a $5,000 guaranteed issue whole life insurance policy.
Given that guaranteed issue policies do not factor in health status or smoking habits, the age-associated premium variations in simplified issue policies are less dramatic here. However, age still influences the premium cost.
| Age | Male |
| Age 50 | $22.50 |
| Age 51 | $24.14 |
| Age 52 | $25.66 |
| Age 53 | $27.08 |
| Age 54 | $28.31 |
| Age 55 | $29.41 |
| Age 56 | $30.24 |
| Age 57 | $30.97 |
| Age 58 | $31.61 |
| Age 59 | $32.07 |
| Age 60 | $32.39 |
| Age 61 | $34.73 |
| Age 62 | $36.93 |
| Age 63 | $39.03 |
| Age 64 | $41.05 |
| Age 65 | $43.02 |
| Age 66 | $44.76 |
| Age 67 | $46.27 |
| Age 68 | $47.69 |
| Age 69 | $48.93 |
| Age 70 | $50.03 |
| Age 71 | $54.52 |
| Age 72 | $58.92 |
| Age 73 | $63.04 |
| Age 74 | $66.89 |
| Age 75 | $70.19 |
| Age 76 | $81.87 |
| Age 77 | $93.10 |
| Age 78 | $103.86 |
| Age 79 | $114.17 |
| Age 80 | $124.07 |
The table for male policyholders aged 50-80 shows premiums starting at $22.50 for a 50-year-old and rising gradually, reaching $124.07 for an 80-year-old. Although not influenced by health or smoking factors, the premiums for guaranteed issue policies for men increase with age, making age a key determinant in the cost of coverage.
| Age | Female |
| Age 50 | $17.68 |
| Age 51 | $18.92 |
| Age 52 | $19.98 |
| Age 53 | $20.94 |
| Age 54 | $21.81 |
| Age 55 | $22.59 |
| Age 56 | $23.46 |
| Age 57 | $24.14 |
| Age 58 | $24.83 |
| Age 59 | $25.47 |
| Age 60 | $25.98 |
| Age 61 | $27.49 |
| Age 62 | $28.86 |
| Age 63 | $30.05 |
| Age 64 | $30.97 |
| Age 65 | $31.75 |
| Age 66 | $33.35 |
| Age 67 | $34.68 |
| Age 68 | $35.92 |
| Age 69 | $37.11 |
| Age 70 | $38.21 |
| Age 71 | $41.87 |
| Age 72 | $45.36 |
| Age 73 | $48.70 |
| Age 74 | $51.77 |
| Age 75 | $54.52 |
| Age 76 | $62.31 |
| Age 77 | $69.6 |
| Age 78 | $76.51 |
| Age 79 | $82.93 |
| Age 80 | $88.61 |
For female policyholders aged 50-80 in guaranteed issue policies, where health and smoking habits are not considered, age continues to influence premium costs. Premiums for a $15,000 Guaranteed Issue Whole Life Insurance Policy start at $17 for a 50-year-old and gradually increase, reaching $88 for an 80-year-old. The impact of age on premium costs for female policyholders highlights the role of age as a key factor in determining the overall cost of coverage in these types of policies.
Best Companies For A $5,000 Life Insurance Policy
We’ve explored a network of life insurance carriers to bring you our top picks for a $5,000 life insurance policy.
Simplified Issue Whole Life Insurance: Mutual of Omaha
United of Omaha offers simplified issue whole life insurance through their Living Promise Whole Life Insurance. This includes both their Level Benefit Plan and Graded Benefit Plan. These policies suit those seeking affordable $2,000-$50,000 permanent life insurance coverage.
- No medical exam
- Flat rates
- Death benefits that are income-tax-free for beneficiaries
- Cash value that grows over time and is yours to use at any point, for anything
- Accelerated death benefits for terminal illness or nursing home confinement
Company Highlights:
- Part of Mutual of Omaha, a top insurer with a reputation of over 75 years
- A+ financial strength rating from A.M. Best
United of Omaha’s Living Promise products provide whole life coverage through simplified underwriting. It makes them a good choice for an affordable policy to cover final expense and burial costs.
Guaranteed Issue Whole Life Insurance: Gerber Life
Gerber Life offers life insurance to Americans 50+ through their Guaranteed Issue policy. This provides up to $25,000 of permanent coverage for final expenses through a straightforward application process.
- Guaranteed acceptance regardless of health
- Rates never increase
- Benefit payout is tax-free to beneficiaries
- Cash value grows tax-deferred at a guaranteed interest rate; policy loans available with no credit check
Company Highlights:
- Well-known brand for 90+ years
- Rated A (Excellent) by A.M. Best for financial stability and strength
Faith Boluwatife
Faith is an enthusiastic medical copywriter who is passionate about creating educational content especially around healthy living and Medicare. She holds a Master in Public Health and functions as a regular contributor for a number of health blogs where she writes valuable pieces to educate individuals.
