How much does life insurance cost?

Life insurance can provide financial assistance to your loved ones after you pass. This can help pay for funeral expenses or compensate the beneficiaries for income loss due to the death.

There are many types of life insurance. The most common is term life insurance. This policy allows you to pay a fixed monthly or annual premium for a certain amount of coverage such as $500,000. The coverage is only valid for a set period and then expires. You can choose to have coverage for as little as 10 years, or as long as you want it to be.

Another option is whole life insurance. Whole life insurance is permanent, unlike term life insurance which has an expiration date. You will have coverage throughout your life as long as your premium payments are made on time. In most cases, whole life insurance is more expensive than term insurance. When you shop for life insurance or switch companies, costs will play a large role in determining which provider and plan you use.

What is the cost of life insurance?

You may be interested in finding out “how much life insurance costs” as part of your financial strategy. These numbers were provided by S&P Global Market Intelligence. They show an example of term insurance prices for policyholders who are healthy and non-smokers.

Age-based average cost of life insurance

S&P Global Market Intelligence also provides rates by age for healthy, male and female policy shoppers seeking $250,000 of term life coverage at various ages:

Important to remember is that life insurance costs increase most after the age of 45. Those who wait until they reach middle or retirement age to purchase coverage will typically pay much more for it than if they had taken out a policy when they were younger.

Gender-based average cost of life insurance

The following policyholders, who are both 35 years old, are looking for a 30-year policy with a $250,000. death benefit.

You can see that life insurance costs for men are about $2.80 higher than those of women. This amounts to just over $1,000 for a 30-year policy. Rates are similar, regardless of the size of the insurance company.

State-specific life insurance rates

Like other types of insurances, your life insurance cost can be affected by unique factors. The cost of life insurance is not affected by geographical factors such as where you live. The average cost of life insurance in the United States may be slightly different. Although regulations can vary from one state to the next, there may be slight differences in life insurance rates across the United States.

Cost of term life insurance varies by state

S&P Global Market Intelligence published a table showing the average cost of term life insurance per household for every state in the U.S., broken down as follows:

Factors that affect your life insurance costs

When determining your eligibility and pricing of your premium, there are many factors that life insurance companies consider. These costs can be better understood if you think about them from the perspective insurance providers. This will help you understand how rates are determined based on risk.


The average life expectancy of women is longer than that of men, so if your male gender is involved, it means you pose a greater risk to insurance companies. This means that life insurance is more expensive for males than it is for females of the same age.


The insurance company will likely pay the benefit if you are older when you apply for a policy.

Death benefit amount

The amount of coverage you require is another factor that influences the price of life insurance. A policy that provides financial support to a loved person (think $50,000) will cost you less than a policy with a $1,000,000 death benefit.

Types of life insurance

Term life insurance rates can be cheaper than whole-life insurance rates. Term life insurance only lasts for a limited time. Whole life insurance is permanent. You can cancel the policy at any time. Term life insurance provides a death benefit amount that you choose. Whole life insurance includes a cash value that you can access while you are alive.


The amount you pay for life insurance will depend on what you do for a living. You could be exposed to greater risks if you work in dangerous occupations such as law enforcement, war reporting, or construction. Life insurance might cost you a bit more because of the increased risk.


How much you pay also depends on your health. Your premium will be higher if you smoke or use tobacco products. Before approving you for any life insurance policy, many companies will require you to complete a questionnaire about your health and a physical exam.

An approved nurse from the company will visit you at your home to collect information about you and your family, and also check your blood pressure, resting pulse rate, and other health metrics. In some cases, a sample of your blood may be taken. The amount you pay will depend on your current health and the risk factors in your family.


The last thing is how you live. You will pay more for life insurance if you are a regular drinker of alcohol or engage in high-risk activities like cliff diving.

Questions frequently asked

What amount should you spend on life assurance?

It all depends on your financial situation and the needs of your family. It is a good idea to determine how much coverage you need for your beneficiaries in case of your death. These could include your final expenses, income replacement costs, the cost of your children’s education, and your debts. Once you’ve determined how much you want to leave your family, it is possible to shop around for the best rates.

Are you liable for taxes on your life insurance policy?

It depends on the details of your life insurance policy. A life insurance death benefit does not usually attract taxes. Cash value policies have a tax-deferred growth rate. Any loan taken from this amount is also tax-free. Cash value life insurance policies are exempt from income tax unless you cash out your policy and receive more than you have paid over the policy’s life. This would be considered taxable income.

How do I buy life insurance?

You can get life insurance quotes by visiting a few companies’ websites. While some policies can be purchased online, others require you to complete a questionnaire about your medical history and health. Some companies will ask you to have a physical to assess your health. Some policies can be purchased immediately, while other companies may take several weeks to provide coverage. Many people have access to discounted or free life insurance through their employer’s group plans. You might want to talk to your HR representative to see if this option is available to you.