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.
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 Life Insurance Rates per Year for a 30-Year-Old Female
Term Life Insurance Rates per Year for a 40-Year-Old Male
Term Life Insurance Rates per Year for a 40-Year-Old Female
Term Life Insurance Rates per Year for a 50-Year-Old Male
Term Life Insurance Rates per Year for a 50-Year-Old Female
Term Life Insurance Rates per Year for a 60-Year-Old Male
Term Life Insurance Rates per Year for a 60-Year-Old Female
Term Life Insurance Rates per Year for a 70-Year-Old Male
Term Life Insurance Rates per Year for a 70-Year-Old Female
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
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.
Average Whole Life Insurance Cost per Year for a $250,000 Policy
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
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
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
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
