Life insurance costs an average of $12 a month ($144 a year) to $14 a month ($162 a year) for a 20-year, $250,000 term life insurance policy for a healthy 30-year-old buyer, based on our analysis.
The same policy costs $16 a month ($197 a year) to $19 a month ($227 a year) for a healthy 40-year-old, and $32 a month ($386 a year) to $40 a month ($485 a year) for a healthy 50-year-old buyer.
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Average Life Insurance Rates
Life insurance costs vary significantly based on factors such as gender, age, type of policy, coverage amount and length of coverage.
- 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 male buyer age 30 and $12 a month ($144 a year) for a female 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 ($227 a year) for a 40-year-old male buyer and $16 a month ($197 a year) for a 40-year-old female.
- For 50-year-olds: The average cost for a 20-year, $250,000 term life insurance policy is $40 a month ($485 a year) for a 50-year-old male buyer and $32 a month ($386 a year) for a 50-year-old female.
Term Life Insurance Rates by Age and Gender
It’s wise to buy life insurance when you’re younger before rates are increasing significantly for buyers 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 on a 20-year policy for senior buyers age 70 cost over 1,000% more than the same 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.
Average 20-Year Term Life Insurance Rates per Year for Males
| Age | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
| 30 | $162 | $250 | $261 |
| 40 | $227 | $365 | $638 |
| 50 | $485 | $882 | $1,670 |
| 60 | $1,510 | $2,742 | $5,239 |
| 70 | $6,189 | $10,181 | $19,919 |
Average 20-Year Term Life Insurance Rates per Year for Females
| Age | $250,000 in coverage | $500,000 in coverage | $1 million in coverage |
|---|---|---|---|
| 30 | $144 | $207 | $324 |
| 40 | $197 | $309 | $526 |
| 50 | $386 | $678 | $1,228 |
| 60 | $1,040 | $1,923 | $3,679 |
| 70 | $5,357 | $8,486 | $15,621 |
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Ladder
$3 million
20-60
10, 15, 20, 25 or 30 years
Term Life Insurance Rates 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
Average Annual Term Life Insurance Rates for a 20-Year Policy
Average Annual Term Life Insurance Rates for a 30-Year Policy
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
20-Year Term Life Insurance Annual Rates
30-Year Term Life Insurance Annual Rates
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. These are average whole life insurance rates 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 |
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. These are average universal life insurance rates 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 |
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 |
Whole life insurance policies also may not require a life insurance medical exam.
Average Annual No-Exam Whole Life Insurance Rates for a $250,000 Policy
| Age | Male | Female |
|---|---|---|
| 30 | $2,576 | $2,329 |
| 40 | $3,390 | $3,314 |
| 50 | $5,569 | $4,811 |
What Factors Impact Your Life Insurance Cost?
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.
Here are factors that affect term life insurance rates.
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.
Calculate How Much Life Insurance You Need
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.
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Maximum no-exam coverage
$3 million
Eligible ages
20-60
Term lengths available
10, 15, 20, 25 or 30 years
$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.
Methodology
To find the average cost of life insurance, we collected quotes online and averaged the lowest three or four, depending on availability. All rates are based on healthy non-smoking buyers of average height and weight.
Your own rates will be different depending on your age, health and other factors.
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How Much Is Life Insurance 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.
Does your credit affect life insurance rates?
Life insurance companies might perform a soft credit check when you apply 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.
Also, some companies use credit scores, or elements of credit reports and other reports, to predict “mortality” life expectancy. 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) will lock you in at a lower 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 cost 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 is likely worth the cost if you have loved ones who rely on you financially or you are a caregiver whose services would need to be replaced by hired help.
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.
