If you’re looking for Best Life insurance policy, there are dozens of companies, term lengths and coverage amounts to choose from.
Price will no doubt factor into your decision and may even determine what type of policy you choose. For a snapshot of those prices, NerdWallet compared average life insurance rates for men and women at different ages and health tiers, across multiple coverage options.
How much is life insurance?
The average cost of life insurance policy is $26 a month. This is based on data provided by Quotacy for a 40-year-old buying a 20-year, $500,000 term life policy, which is the most common term length and amount sold. But life insurance rates can vary dramatically among applicants.
How life insurance rates are determined
life insurance premiums are based primarily on life expectancy. In general, the younger and healthier you are, the cheaper your premiums.
Each insurer has its own evaluation process known as life insurance underwriting and weighs factors differently. That’s why it’s a good idea to compare quotes from multiple insurers.
These are the main things insurers assess when setting your rate:
- Your age. Generally, younger people pay less for life insurance. This is because as you age, your life expectancy goes down, and the likelihood of your insurer having to pay out your policy goes up. That’s why it’s wise to buy life insurance as early as possible; the longer you wait, the more your rates will increase based solely on age.
- Your gender. Because women have longer life expectancies, women will almost always pay less than men of the same age and health. Life expectancy in the U.S. is 79.3 years for women and 73.5 years for men, according to the latest data from the Centers for Disease Control and Prevention[1].
- Your smoking status. Since smokers are at a higher risk of developing health issues such as respiratory disease.
- Your health. This includes any pre-existing conditions, as well as your blood pressure and cholesterol levels. Insurers will also look at your height and weight.
- Your family medical history. Your insurer may ask if you have a family history of serious health conditions such as heart disease, cancer or diabetes.
- Your driving record. If you have DUIs, DWIs and major traffic violations on your record, your insurer might consider you a High risk life insurance applicant and charge higher rates.
- Your occupation and lifestyle. If you have a hazardous or high-risk job, such as a police officer working on the bomb squad or a race car driver, you can expect to pay more than someone with a desk job. Similarly, if you participate in risky activities like skydiving, you might be charged a higher premium.
What doesn’t impact your life insurance premium
These factors have no effect on the rate you’re offered:
- Your ethnicity, race and sexual orientation. While insurers assess your age and gender, they can’t discriminate based on these elements of diversity.
- Your credit score. Although your credit score won’t affect your life insurance premium, you can expect your insurer to look at your credit history going back seven years. If you have a bankruptcy on your record, you might be deemed to have a higher risk of mortality, which may affect premiums.
- Your marital status. Unlike many auto insurance companies, life insurers don’t have different rates for married applicants.
- The number of life insurance policies you have. Just know that you need to justify purchasing large amounts of coverage across multiple policies.
- The number of beneficiaries you name. Whether you have one life insurance beneficiary or five, this won’t impact your rate.
Average cost of term life insurance by age
These annual life insurance rates are based on a $500,000, 20-year term life insurance policy for preferred applicants in good health.
Term life insurance rates for nonsmokers
| Age | Average cost per year for men | Average cost per year for women |
|---|---|---|
| 20 | $221 | $181 |
| 30 | $225 | $190 |
| 40 | $340 | $288 |
| 50 | $834 | $655 |
| 60 | $4,575 | $3,187 |
| Source: Quotacy. Lowest three rates for each age averaged. Rates reflect premiums paid monthly for one year. Data valid as of March 20, 2024. | ||
Average cost of whole life insurance by age
These annual life insurance rates are based on a $500,000 policy for preferred applicants in good health.
Whole life insurance rates for nonsmokers
| Age | Average cost per year for men | Average cost per year for women |
|---|---|---|
| 20 | $2,284 | $2,025 |
| 30 | $3,310 | $2,903 |
| 40 | $4,471 | $4,123 |
| 50 | $6,531 | $5,831 |
| 60 | $10,113 | $9,149 |
| Source: Quotacy. Lowest three rates for each age averaged. Rates reflect premiums paid monthly for one year. Data valid as of March 20, 2024. | ||
Term life insurance rates for smokers
| Age | Average cost per year for men | Average cost per year for women |
|---|---|---|
| 20 | $775 | $557 |
| 30 | $815 | $670 |
| 40 | $1,497 | $1,163 |
| 50 | $3,526 | $2,565 |
| 60 | $8,773 | $6,155 |
| Source: Quotacy. Lowest three rates for each age averaged. Rates reflect premiums paid monthly for one year. Data valid as of March 20, 2024. | ||
Whole life insurance rates for smokers
| Age | Average cost per year for men | Average cost per year for women |
|---|---|---|
| 20 | $3,856 | $2,948 |
| 30 | $6,315 | $4,999 |
| 40 | $9,246 | $7,791 |
| 50 | $12,400 | $9,935 |
| 60 | $19,341 | $15,602 |
| Source: Quotacy. Lowest three rates for each age averaged. Rates reflect premiums paid monthly for one year. Data valid as of March 20, 2024. | ||
Cost of life insurance without a medical exam
If you want to skip the life insurance medical exam, here’s what you can expect to pay annually for a $500,000, 20-year, no-exam term life policy.
No-exam life insurance rates for nonsmokers
| Age | Average cost per year for men | Average cost per year for women |
|---|---|---|
| 30 | $232 | $192 |
| 40 | $375 | $321 |
| 50 | $838 | $658 |
| Source: Quotacy. Sample rates from SBLI, as of March 20, 2024. Rates reflect premiums paid monthly for one year. The insurer notes some applicants might be required to take a medical exam. | ||
No-exam life insurance rates for smokers
| Age | Average cost per year for men | Average cost per year for women |
|---|---|---|
| 30 | $927 | $721 |
| 40 | $1,581 | $1,251 |
| 50 | $3,898 | $2,791 |
| Source: Quotacy. Sample rates from SBLI, as of March 20, 2024. Rates reflect premiums paid monthly for one year. The insurer notes some applicants might be required to take a medical exam. | ||
Average cost of life insurance by term length
These annual life insurance rates are based on a $500,000 term life policy for a nonsmoking 40-year-old applicant in good health.
| Term length | Average cost per year for men | Average cost per year for women |
|---|---|---|
| 10 years | $208 | $183 |
| 20 years | $288 | $340 |
| 30 years | $590 | $469 |
| Source: Quotacy. Lowest three rates for each age averaged. Rates reflect premiums paid monthly for one year. Data valid as of March 20, 2024. | ||
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