Term Life Insurance Rates by Age
Like we said, age plays a huge role in pricing for term life policies. If you’re wondering why, it’s simply because your probability of dying goes up as you age. Fun thoughts.
Of course, there are other factors as well. A few more things insurance companies look at to calculate a term life rate include:
- Whether you use tobacco: Rates are higher—sometimes double—for smokers.
- Your health: Eat those peas!
- Your gender: Men have shorter life expectancies because they tend to take risks and work more dangerous jobs, so their rates are higher in general, regardless of age.
We used our Term Life Estimator to find the average rates for term life policies based on age. Let’s look at how much you’d pay per month as a nonsmoker for a $1 million policy in several different yearly coverage terms.
Term Life Insurance Rates by Age and Term Length for Men*
Age
Monthly Rates for a 10-Year Term
Monthly Rates for a 15-Year Term
Monthly Rates for a 20-Year Term
Monthly Rates for a 25-Year Term
20
$30.50
$35.50
$44.50
$58
22
$28.50
$35
$44.50
$58
24
$27.50
$35
$44.50
$58
26
$27.50
$35
$44.50
$58
28
$27.50
$35
$44.50
$58
30
$27.50
$35.50
$47
$58.50
32
$27.50
$36.50
$47.50
$61.50
34
$28.50
$46.50
$47.50
$61.50
36
$31
$42
$55
$72.50
38
$36.50
$48
$62
$83
40
$42
$55.50
$72
$97.50
42
$48.50
$66
$87
$116
44
$59.50
$78
$106
$141
46
$74
$92.50
$126
$169
48
$88
$111.50
$150.50
$202.50
50
$105
$135.50
$183
$242
52
$124.50
$166.50
$218
$302
54
$148
$208.50
$267
$380
56
$179
$252
$328
$460.50
58
$223
$305.50
$411.50
$611.50
60
$274.50
$376
$527
$801.50
62
$336
$477
$692
$1,066
64
$426.50
$601.50
$885
n/a
66
$547.50
$791
$1,159.50
n/a
68
$691.50
$1,006.50
$1,527.50
n/a
70
$876
$1,233.50
$1,884
n/a
72
$1,096.50
$1,780.50
n/a
n/a
74
$1,448.50
$2,380.50
n/a
n/a
76
$2,069.50
n/a
n/a
n/a
78
$2,625
n/a
n/a
n/a
80
$3,466
n/a
n/a
n/a
*Monthly rates reflect the average price of $1 million in coverage for nonsmokers. Data is based on a 5’9”, 150 lb. male with a January 1 birthday. Data assumes health rating of good. Actual prices may vary based on health class.
Term Life Insurance Rates by Age and Term Length for Women*
Age
Monthly Rates for a 10-Year Term
Monthly Rates for a 15-Year Term
Monthly Rates for a 20-Year Term
Monthly Rates for a 25-Year Term
20
$22.50
$28.50
$34.50
$42
22
$22.50
$28.50
$34.50
$42
24
$22.50
$28.50
$34.50
$42
26
$22.50
$29
$35
$43.50
28
$23
$29
$35.50
$45
30
$23
$30
$36.50
$47.50
32
$23
$30.50
$38
$50
34
$23.50
$32
$40.50
$53.50
36
$25.50
$36
$45
$59
38
$29.50
$41
$52
$67.50
40
$34.50
$46.50
$59.50
$78.50
42
$42
$54.50
$69
$91.50
44
$49
$64.50
$80.50
$107.5
46
$61.50
$74.50
$94.50
$125.50
48
$73.50
$88.50
$112.50
$151.50
50
$85.50
$105.50
$134
$180.50
52
$101.50
$124.50
$160
$217
54
$118.50
$146
$192
$270
56
$136.50
$175
$234
$316
58
$162.50
$210
$289
$414.50
60
$195
$262.50
$367.50
$540
62
$221
$324
$478
$755
64
$273
$404
$616.50
n/a
66
$341
$504
$811.50
n/a
68
$419
$627
$1,043.50
n/a
70
$616
$775
$1,343
n/a
72
$756.50
$1,126.50
n/a
n/a
74
$933
$1,478.50
n/a
n/a
76
$1,312
n/a
n/a
n/a
78
$1,775
n/a
n/a
n/a
80
$2,379
n/a
n/a
n/a
*Monthly rates reflect the average price of $1 million in coverage for nonsmokers. Data is based on a 5’4″, 125-lb. female with a January 1 birthday. Data assumes health rating of good. Actual prices may vary based on health class.
As you can see, there’s no time like the present to get a good term life insurance rate locked in. In fact, with each passing year, the cost of getting a new policy rises just a bit. And then it really shoots up in your 50s!
Check out how much a 20-year-old can expect to pay for a new policy of any length and compare those numbers to the average rates for a 50-year-old. Depending on the term, you’re talking about double, triple or even quadruple the monthly payment. Ouch.
On the other hand, if a 30-year-old guy—let’s call him Jesse—gets his policy in place today, and opts for a 25-year term, he’ll pay $58.50 a month for coverage . . . and that price will be the same when he’s 45! And if Jesse waits to buy until he’s 48? The same term of coverage will cost him a whopping $202.50 a month. (By the way, that number will actually be even higher because that’s the number he’d pay if he was 48 now. In 18 years, inflation will have pushed prices up even more.) It really does pay to buy now.
What about a 40-year-old woman—let’s call her Jesse—shopping for 25-year term life insurance rates? Although she could have gotten in on cheaper rates when she was newly married 20 years ago—and we all wish she had—she still has time to get a pretty good deal at $78.50 a month for coverage that will last her into retirement. But compare that to the same policy value purchased at 60—the average monthly cost shoots up to $540! Let’s hope Jesse’s already self-insured by that point because not many people can afford to pay thousands a year for life insurance.
The beauty of term life coverage is that so long as you keep up with the premium payments, the price is locked in for the life of the policy. That’s why time is of the essence.
