Life insurance safeguards your family’s financial stability after your passing, making it a smart addition to your financial planning. For an affordable option, consider term life insurance, which is often less expensive than expected.
We analyzed average life insurance rates based on age, term length, and payout amount. Your exact price will depend on your health and age, among other things, but our review of average life insurance rates will give you an idea of how much you can expect to pay.
How Much Is Life Insurance?
For 30-year-olds: Life insurance for 20 years costs an average of $14 per month ($162 per year), a $250,000 term life insurance policy for a 30-year-old male, and $12 per month for a 30-year-old female ( $143), based on our analysis.
For 40-year-olds: The average cost of a 20-year, $250,000 term life insurance policy is $19 per month ($226 per year) for a 40-year-old and $16 per month ($196) for a 40-year-old. -Old. -year-old female.
For 50-year-olds: The average cost of a 20-year, $250,000 term life insurance policy is $41 per month ($487 per year) for a 50-year-old and $32 per month ($387 per year) for a 50-year-old. Year. -year-old female.
Life insurance prices vary significantly depending on factors such as gender, age, policy type, coverage amount, and length of coverage. Since life insurance rates increase as you age, it is wise to get a policy while you are young.
How Life Insurance Rates Are Determined
Life insurance companies want to determine one important thing: How long are you likely to live?
The information they gather helps you answer this complex question and calculate your life insurance rates.
How much you pay for life insurance depends on what type of life insurance you buy, how much coverage you get, and your age and health, among other factors. Each life insurance company has its policy pricing system, so comparing quotes between multiple companies will help you find the policy that best suits your needs and budget.
Here are 10 factors that typically affect 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, you’re more likely to have to pay an insurer, leading to higher rates.
Credit: Credit is a factor in some risk scores used by life insurers.
Criminal History: Having a felony on your record may affect your ability to get a policy.
Driving record (especially DUI and speeding tickets): Driving drunk and speeding puts you at greater risk and results in a higher rate.
Family health history (biological siblings and parents): If your family medical history shows serious diseases, especially hereditary diseases, you may be affected at higher rates.
Gender: Women have a longer life expectancy and so are generally paid less than men of similar age and health.
Height and weight: If your height and weight are within certain limits, you’ll get better rates than being overweight or underweight, both of which can cause health problems.
History of substance abuse: Drug or alcohol abuse can reduce your life expectancy, resulting in higher life insurance rates.
Nicotine and/or marijuana use: Smokers, other nicotine users (including vaping and patches), and marijuana users often receive higher rates.
Past and present health: How healthy you are significantly affects your rates. Medical problems are taken into account to determine whether they will reduce your life expectancy.
Apart from the above factors, one of the primary factors that affects the payout you make is the type of life insurance policy you choose.
Life insurance comes in two basic types: term life insurance and permanent life insurance. The advantage of permanent life is that it lasts until you die, but it is more expensive than temporary life.
Average Term Life Insurance Rates by Age
It’s wise to buy life insurance while you’re young before rates rise and your policy options dwindle. With each passing year, your life insurance costs will increase, even if you are in excellent health. By waiting to purchase life insurance, you also run the risk of developing a health condition that will result in even higher rates when you purchase the policy.
Term life insurance allows you to lock in a level rate for a fixed period, such as 10, 20, or 30 years.
Here we see that the annual life insurance cost for a 70-year-old senior is 1,000% more than a policy purchased by a 30-year-old. It is also worth noting that the 30-year term is generally not available to those aged 60 years 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 |
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
It is important to know how much life insurance you need. As the amount of the death benefit increases, so will your costs. We analyzed annual rates for different term lengths for policy payouts ranging from $100,000 to $3 million for a 30-year-old.
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 |
Average Cost of Universal Life Insurance by Age
Universal life insurance policies are generally less expensive than whole life insurance policies. Although they lack some 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 |
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 about who is eligible for nontested life insurance, so it’s best for those who are 50 or younger and in good 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 |
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 |
How To Lower Your Life Insurance Premiums
Choose a term life insurance policy: Term life is usually the cheapest life insurance option because it only has fixed rates for a specific period and is whole life insurance coverage, with no cash value.
Buy life insurance while you’re young: Age plays a big role in how much you pay for life insurance. If you buy life insurance when you need it, you can lock in the lowest rates possible before the cost of your life insurance increases due to age and health problems.
Improve your health: Health problems and smoking are two cost factors for life insurance. Improving your health and quitting smoking (and all nicotine products) are two ways to save on life insurance.
Choose riders wisely: Life insurance riders are a way of adding features to a policy. Riders that help you pay for long-term care and other end-of-life benefits can help you later, but riders usually get added to the price of the policy, so choose wisely.
Shop for life insurance: Each life insurance company has its way of calculating quotes. One insurance company may offer you better rates even if you are not in the best condition, while another company may offer better rates for older people. Get life insurance quotes from multiple companies to find the best rates.
Term life insurance rates are for a healthy non-smoker of average height and weight by age, term, and death benefit amount. We averaged the four cheapest quotes we found online, except where noted. Your rates will vary depending on your age, health, driving record, and other factors.