Average Life Insurance Rates

There are many companies that offer life insurance. You can choose from a variety of terms and coverage amounts.

Your decision will be influenced by price and could even influence the type of policy you choose. NerdWallet provided a quick snapshot of these prices. It compared the average life insurance rates for men & women at various ages and health levels across multiple coverage options.

What is the cost of life insurance?

Life insurance costs an average of $26 per month. Quotacy data shows that a 40-year old buying a 20 year term life policy is most popular. Life insurance rates can differ greatly between applicants, insurers, and policies.

How are life insurance rates determined?

Life insurance premiums are based primarily on life expectancy, so many factors help determine rates, including gender, age, health and whether you smoke.

The general rule is that the more healthy you are, the lower your premiums will be. Insurers typically class applicants using terms like super preferred, preferred and standard, with super preferred being the healthiest category. Your risk class is then used by insurers to calculate your premium.

The type of life insurance you choose also affects your rates:

  • Term life insurance is the least expensive because it lasts a set number of years and all you’re getting is insurance.
  • Permanent life insurance lasts a lifetime and includes an investment portion that can be used later in life. Permanent policies will cost you significantly more than term life policies because of the cash component.

The life insurance cost calculator will help you calculate how much a term policy of life insurance could cost based on national averages. For permanent policies such as whole life insurance, contact an independent financial advisor.

Premium costs can be affected by your age. Life insurers consider you a greater risk if you get older. It’s important to get life insurance as soon as you can. The longer you wait, your rates will rise solely based on your age.

There will be differences in pricing depending on gender. However, these are often a reflection of age. Women will pay almost always less than men due to their longer life expectancies. The Centers for Disease Control and Prevention estimates that life expectancy in the United States is 81.2 years for females and 76.2 for men.

It will always cost more to wait before purchasing a policy. Consider a 30-year old who is unable to purchase a policy.

  • At age 40, a 20-year, $500,000 term life insurance policy will cost about $100 more per year.
  • Annual rates for a 20 year, $500,000 term policy will triple by age 50