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Life insurance can safeguard your family’s quality of life if you pass away, so it’s wise to have it as part of your larger financial plan. If you’re worried that you can’t afford life insurance, check out actual quotes. The cost of term life insurance might be much lower than you guess.
We analyzed average life insurance rates based on age, term length and payout amount. Your exact cost will depend on your health and age, among other things, but our overview of average life insurance rates will give you an idea of what you can expect to pay.
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How Much Is Life Insurance?
For 30-year-olds: Life insurance costs an average of $14 a month ($162 a year) for a 20-year, $250,000 term life insurance policy for a man age 30 and $12 a month ($143 a year) for a woman age 30, based on our analysis.
For 40-year-olds: The average cost for a 20-year, $250,000 term life insurance policy is $19 a month ($226 a year) for a 40-year-old man and $16 a month ($196 a year) for a 40-year-old woman.
For 50-year-olds: The average cost for a 20-year, $250,000 term life insurance policy is $41 a month ($487 a year) for a 50-year-old man and $32 a month ($387 a year) for a 50-year-old woman.
Life insurance costs vary significantly based on factors such as gender, age, type of policy, coverage amount and length of coverage. Because life insurance rates increase as you age, it’s wise to get a policy when you’re younger.
How Life Insurance Rates Are Determined
Life insurance companies want to determine one main thing: How long are you likely to live?
The information they gather helps to estimate an answer to that complicated question and to calculate your life insurance quotes.
What you pay for life insurance depends on the type of life insurance you buy, how much coverage you get, and your age and health, among other factors. Every life insurance company has its own system for pricing a policy, so comparing quotes among multiple companies will help you find the best fit for your needs and budget.
Here are 10 factors that typically influence your ability to get coverage and the life insurance rates you’ll be offered:
- Age. One of the most important factors in calculating rates. As you age, the probability that the insurer will have to pay out goes up, leading to higher quotes.
- Credit. Credit is a factor in some risk scores that life insurers use.
- Criminal history. Having a felony on your record can impact your ability to get a policy.
- Driving record (particularly DUIs and speeding tickets). Driving under the influence and driving at high rates of speed make you a higher risk and result in higher quotes.
- Family health history (biological siblings and parents). If your family medical history shows serious illnesses, especially hereditary diseases, you could be saddled with higher quotes.
- Gender. Females have a longer life expectancy so typically will pay less than males of the same age and health.
- Height and weight. If your height and weight are within the certain limits, you’ll receive better rates than if you’re deemed overweight or underweight, both of which could cause health problems.
- History of substance abuse. Abusing drugs or alcohol can lower your life expectancy, resulting in higher life insurance rates.
- Nicotine and/or marijuana use. Smokers, other nicotine users (including vaping and the patch) and marijuana users often get higher quotes.
- Past and current health. How healthy you are significantly affects your rates. Medical issues are taken into account to determine if they will decrease your life expectancy.
In addition to the above factors, a primary factor influencing what you’ll pay is the type of life insurance policy you choose.
Life insurance comes in two primary types: term life insurance and permanent life insurance. Permanent life has the advantage of lasting until you die, but is more expensive than term life.
Average Term Life Insurance Rates by Age
It’s wise to buy life insurance when you’re younger before rates increase and your policy options decline. With every year that passes, your life insurance quotes will go up, even if you’re in excellent health. By waiting to buy life insurance, you also run the risk that you’ll develop a health condition that will cause an even higher rate when you buy a policy.
Term life insurance allows you to lock in level rates for a set period, such as 10, 20 or 30 years.
We see here how annual term life insurance rates for seniors age 70 cost over 1,000% more than a policy purchased by a 30-year-old. Also of note, a term of 30 years is not generally available to those age 60 and above.
Term Life Insurance Rates per Year for a 30-Year-Old Male
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $131 | $175 | $261 |
20-year term | $162 | $250 | $407 |
30-year term | $238 | $396 | $681 |
Term Life Insurance Rates per Year for a 30-Year-Old Female
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $117 | $149 | $223 |
20-year term | $143 | $207 | $324 |
30-year term | $203 | $321 | $538 |
Term Life Insurance Rates per Year for a 40-Year-Old Male
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $162 | $237 | $370 |
20-year term | $225 | $365 | $638 |
30-year term | $362 | $633 | $1,175 |
Term Life Insurance Rates per Year for a 40-Year-Old Female
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $147 | $204 | $320 |
20-year term | $197 | $309 | $526 |
30-year term | $300 | $507 | $927 |
Term Life Insurance Rates per Year for a 50-Year-Old Male
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $303 | $505 | $904 |
20-year term | $485 | $882 | $1,670 |
30-year term | $864 | $1,590 | $3,066 |
Term Life Insurance Rates per Year for a 50-Year-Old Female
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $258 | $419 | $732 |
20-year term | $386 | $678 | $1,228 |
30-year term | $657 | $1,180 | $2,233 |
Term Life Insurance Rates per Year for a 60-Year-Old Male
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $816 | $1,463 | $2,717 |
20-year term | $1,510 | $2,742 | $5,239 |
30-year term | Not available | Not available | Not available |
Term Life Insurance Rates per Year for a 60-Year-Old Female
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $585 | $1,012 | $1,831 |
20-year term | $1,040 | $1,923 | $3,679 |
30-year term | Not available | Not available | Not available |
Term Life Insurance Rates per Year for a 70-Year-Old Male
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $2,382 | $4,327 | $8,274 |
20-year term | $6,189 | $10,181 | $19,919 |
30-year term | Not available | Not available | Not available |
Term Life Insurance Rates per Year for a 70-Year-Old Female
| Term length | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
10-year term | $1,613 | $2,858 | $5,261 |
20-year term | $5,357 | $8,486 | $15,621 |
30-year term | Not available | Not available | Not available |
Get A Term Life Insurance Quote
1
Ladder
Maximum no-exam coverage
While medical exams may not be required, certain health information is required as part of the application to determine eligibility for coverage
$3 million
Eligible ages
20-60
Term lengths available
10, 15, 20, 25 or 30 years
Term Life Insurance Costs by Term Length
We looked at average annual rates for 30-year-old males and females buying a policy with level term lengths of 10, 20 and 30 years.
Average Annual Term Life Insurance Rates for a 10-Year Policy
| Policy amount | Male buyer | Female buyer |
|---|---|---|
$250,000 | $131 | $117 |
$500,000 | $175 | $149 |
$1 Million | $261 | $223 |
Average Annual Term Life Insurance Rates for a 20-Year Policy
| Policy amount | Male buyer | Female buyer |
|---|---|---|
$250,000 | $162 | $143 |
$500,000 | $250 | $207 |
$1 Million | $409 | $324 |
Average Annual Term Life Insurance Rates for a 30-Year Policy
| Policy amount | Male buyer | Female buyer |
|---|---|---|
$250,000 | $238 | $203 |
$500,000 | $396 | $321 |
$1 Million | $681 | $538 |
Average Term Life Insurance Rates by Payout Amount
Knowing how much life insurance you need is essential. As the amount of the death benefit rises, so will your costs. We analyzed annual rates for a 30-year-old at varying term lengths for policy payouts from $100,000 up to $3 million.
10-Year Term Life Insurance Annual Rates
| Policy amount | Male buyer | Female buyer |
|---|---|---|
$250,000 | $131 | $117 |
$500,000 | $175 | $149 |
$1 Million | $261 | $223 |
$2 Million | $465 | $372 |
20-Year Term Life Insurance Annual Rates
| Policy amount | Male buyer | Female buyer |
|---|---|---|
$250,000 | $162 | $143 |
$500,000 | $250 | $207 |
$1 Million | $407 | $324 |
$2 Million | $748 | $588 |
30-Year Term Life Insurance Annual Rates
| Policy amount | Male buyer | Female buyer |
|---|---|---|
$250,000 | $238 | $203 |
$500,000 | $396 | $321 |
$1 Million | $681 | $538 |
$2 Million | $1,298 | $994 |
Average Cost of Permanent Life Insurance
Permanent life insurance policies provide coverage for a lifetime, as well as the opportunity to accumulate cash value. There are two main types of permanent life insurance, with different features and costs: whole life insurance and universal life insurance.
Average Cost of Whole Life Insurance by Age
A whole life insurance policy is intended to last your lifetime. It builds cash value at a steady rate of return.
Average Whole Life Insurance Cost per Year for a $250,000 Policy
| Age | Male buyer | Female buyer |
|---|---|---|
Age 30 | $2,218 | $2,003 |
Age 40 | $3,318 | $3,090 |
Age 50 | $5,125 | $4,880 |
Source: Forbes Advisor research. Average is based on the three lowest quotes we found online for nonsmokers of average height and weight.
Average Cost of Universal Life Insurance by Age
Universal life insurance policies are usually less expensive than whole life insurance policies. Though they lack some of the guarantees, they can offer more flexibility with adjustable premium payments.
Average Universal Life Insurance Cost per Year for a $250,000 Policy
| Age | Male buyer | Female buyer |
|---|---|---|
Age 30 | $1,371 | $1,225 |
Age 40 | $1,846 | $1,755 |
Age 50 | $2,528 | $2,284 |
Source: Forbes Advisor research. Average is based on the three lowest quotes we found online for nonsmokers of average height and weight.
Cost of Life Insurance Without a Medical Exam
If you don’t want the hassle of a life insurance medical exam, a no-exam term life insurance policy may be an option. There are strict guidelines on who qualifies for no-exam life insurance, so it’s best suited for those younger (in their 50s or below) and in excellent health.
Average Annual No-Exam Term Life Insurance Rates for a 20-Year $500,000 Policy
| Age | Male buyer | Female buyer |
|---|---|---|
30 | $275 | $231 |
40 | $426 | $280 |
50 | $1,032 | $642 |
Source: Policygenius, Ladder, Forbes Advisor research.
Whole life insurance policies also may not require a life insurance medical exam.
Average Annual Rates for No-Exam $250,000 Whole Life Insurance
| Age | Male | Female |
|---|---|---|
30 | $2,576 | $2,329 |
40 | $3,390 | $3,314 |
50 | $5,569 | $4,811 |
Source: Forbes Advisor research. Average is based on rate quotes for no-exam whole life insurance policies.
Life Insurance Calculator
Determining how much life insurance coverage you need is one of the first steps in buying a policy. Your coverage amount, or death benefit needs to be enough to provide funds for anything your family may need after you die.
To find out how much life insurance you may need, enter your annual income, how many years your dependents will need financial support, your debt, future college costs, estimated funeral costs, savings and any current life insurance coverage
FEATURED PARTNER OFFER
Ladder
Maximum no-exam coverage
While medical exams may not be required, certain health information is required as part of the application to determine eligibility for coverage
$3 million
Eligible ages
20-60
Term lengths available
10, 15, 20, 25 or 30 years
On Ladder's Website
While medical exams may not be required, certain health information is required as part of the application to determine eligibility for coverage
$3 million
20-60
10, 15, 20, 25 or 30 years
How To Lower Your Life Insurance Premiums
- Choose a term life insurance policy. Term life is typically the cheapest life insurance option because it has fixed rates for only a specific period of time and it is purely life insurance coverage, with no cash value.
- Buy life insurance while you’re young. Age plays a crucial role in how much you pay for life insurance. If you buy life insurance as soon as you need it, you can lock in the lowest rates possible before age and health issues cause your life insurance quotes to be high.
- Improve your health. Health issues and smoking are two cost drivers for life insurance. Improving your health and giving up smoking (and all nicotine products) are two ways to save on life insurance.
- Choose riders wisely. Life insurance riders are a way to add features to a policy. Riders to help you pay for long-term care and other living benefits can help you later, but riders usually add to the cost of a policy, so choose wisely.
- Shop around for life insurance. Each life insurance company has its own way of calculating quotes . One insurance company may offer you better rates even though you’re not in the best shape, while another might provide excellent rates for older people. Get life insurance quotes from multiple companies to find the best prices.
Key Takeaways for Life Insurance Rates
- Life insurance is not one-size-fits-all. Rates vary based on a variety of factors, including the policy type, length and death benefit you choose—plus personal information you supply and that is gathered from third-party sources by the insurer.
- A term life insurance premium stays the same every year during the level term period, such as 20 years, so you can count on it to be a fixed expense in your budget.
- Age and gender are two critical factors that influence life insurance rates.
- Waiting to buy life insurance, whether it’s term life or a permanent life policy, can lead to higher life insurance costs, so it’s smart to buy a policy as soon as you need one.
- Choosing a longer term will lead to higher term life insurance costs.
- Term life insurance is typically the most affordable coverage.
Methodology
Term life insurance rates by age, term and death benefit amount are for healthy non-smokers of average height and weight. We averaged the four cheapest quotes we found online, except where noted. Your own rates will be different depending on your age, health, driving record and other factors.
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Average Life Insurance Rates Frequently Asked Questions (FAQs)
Which factors won’t affect your life insurance rates?
Race, ethnicity, religion, sexual orientation or marital status don’t impact life insurance rates.
Your rate won’t be affected by the number of life insurance beneficiaries you choose. It doesn’t matter to the insurance company if you split up your death benefits between one or five individuals. Also, your life insurance quote isn’t impacted if you already have another life insurance policy in place, such as a group life policy from work.
Life insurance companies focus on factors that help them determine your life expectancy, such as your age, gender, medical history, if you smoke or if you have a risky occupation or hobbies.
Who pays more for life insurance, males or females?
If all other factors are equal, males generally pay more for life insurance due to a shorter life expectancy than females. We found that on average, 30-year-old men pay about 20% more than women for a 20-year $500,000 term life insurance policy. For the same policy at age 50, males pay 30% more than females.
There’s an exception in Montana, which requires gender-neutral life insurance rates.
Does your credit affect life insurance rates?
Expect insurance companies to possibly perform a soft credit check to review details of your credit report for anything that may give them pause. For instance, if you have a bankruptcy, this can make you a higher risk and affect your life insurance quotes. The score itself may or may not be used, it depends on the life insurance company’s rating system.
Also, some companies use credit scores, or elements of credit reports and other reports, to predict “mortality” life expectancy and they sell this information to life insurance companies. For example, LexisNexis, an analytics company, offers its Risk Classifier score, and TransUnion, an information and insights company, has TrueRisk.
At what age should you shop for term life insurance?
There is no perfect age to shop for life insurance, but a good rule of thumb is to buy life insurance as soon as possible when you have a need for it.
Buying term life insurance while younger (and healthier) can lock you in on a reasonable cost for the length of your policy. If you discover you need more life insurance as you age, you can always buy additional coverage or try laddering life insurance.
Should I pick the policy with the cheapest life insurance rates?
Term life insurance shoppers should focus on rates when comparing policies. In addition, consider the company’s financial strength ratings, such as ratings from AM Best.
Comparing rates is more complicated if you’re buying a permanent life insurance policy such as whole life or universal life insurance. The monthly or yearly premium you’re quoted does not reflect the total “cost” of the policy. High internal policy charges will eat into your cash value, leaving you less money if you want to do a life insurance policy loan or withdrawal. Work with an experienced financial advisor or life insurance agent to understand the true costs of a policy.
Can my life insurance premiums be higher than the quotes I received?
Yes, your final life insurance premiums can be higher than the first life insurance quote. Quotes are only an initial estimate of what the insurer thinks it will charge you based on factors like your age, gender, height and weight, and smoking status.
Life insurance companies generally require an underwriting process, which may include a medical exam. During the underwriting process, the life insurance company reviews your health history and usually looks at other factors, including your driving record and any dangerous hobbies, such as scuba diving.
Once the life insurance company has assessed all the data, it will decide whether to approve you for a policy and how much you will pay.
When is life insurance worth the cost?
Life insurance likely is worth the cost if you have loved ones who rely on you financially or as a caregiver.
To decide if life insurance is worth the cost for your specific situation, evaluate what financial obligations a policy could help with in the event of an unexpected death. Life insurance death benefits can:
- Cover funeral costs.
- Provide income replacement when your family no longer has your paycheck.
- Pay off a mortgage, car loans or other outstanding debts.
- Pay for a child’s college education.
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