Last Updated: September 2019
Life insurance cost will vary widely based on the type of policy you’re considering, your age & health, and even the company you purchase from.
However, below we will explain the average life insurance cost based on all of these factors and more so that you can get an idea of what rates you might pay for life insurance.
- How is Life Insurance Cost Determined?
- How Much Does Life Insurance Cost on Average? [See Rate Charts Here]
- How Can I Find Low-Cost Life Insurance?
- FAQ’s About Life Insurance Cost
- Find Out How Much Your Life Insurance Will Cost
No matter what your age, health, or lifestyle may be, purchasing a life insurance policy is something that may certainly be in the best interest of you and your family.
With a quality life insurance policy, you can gain access to the long-term financial protection you need. Because of this, and the high costs associated with life insurance, it is considered to be a significant investment.
How is Life Insurance Cost Determined?
The cost of a life insurance policy is determined in the underwriting process.
Underwriting is the process of determining risk. Life insurance companies use an applicant’s overall risk to then determine life insurance premiums.
With seemingly countless different life insurance providers to choose from, and every person is different, there will naturally be a significant amount of variation between any two life insurance companies when it comes to price.
How Underwriting Affects Life Insurance Cost
The underwriting process is incredibly complex and can take anywhere from a few hours to several weeks in order to be fully completed.
If a life insurance policy is advertised as offering “guaranteed” or “immediate” coverage, the underwriting process will obviously require significantly less time. However, these policies usually come at a higher cost.
Though the approach to underwriting will vary significantly between potential insurance providers and potential policy types, there are still many variables that will quite frequently be accounted for.
- Your age at the time of application
- Your health (medical conditions, medical history, etc.)
- Your gender (women will typically pay less for life insurance)
- Your lifestyle (high-risk occupations, smoking, etc.)
- The amount of coverage you are applying for
- Relevant riders
- Variables that are specific to the company itself
Generally speaking, anything that indicates the insurance provider may need to pay out the policy sooner will increase the amount that they ask you to pay each month (premiums).
How Much Does Life Insurance Cost on Average?
In order to better understand the underwriting process, it can be incredibly helpful to compare different life insurance costs.
Below are some charts that show sample life insurance rates some common scenarios. Each of them shows rates for men and women, in different age groups.
Average Life Insurance Cost for Healthy People
Below are some of the best term and whole life insurance rates on the market for males and females, who are in excellent health.
Note: all term and whole life policies are for $500,000 of life insurance coverage.
| Age | Policy | Male | Female |
|---|---|---|---|
| 23 | 10 Year Term | $13/mo. | $10/mo. |
| 20 Year Term | $19/mo. | $16/mo. | |
| 30 Year Term | $31/mo. | $24/mo. | |
| Whole Life | $152/mo. | $128/mo. | |
| 33 | 10 Year Term | $13/mo. | $12/mo. |
| 20 Year Term | $20/mo. | $17/mo. | |
| 30 Year Term | $35/mo. | $29/mo. | |
| Whole Life | $160/mo. | $136/mo. | |
| 43 | 10 Year Term | $23/mo. | $21/mo. |
| 20 Year Term | $39/mo. | $32/mo. | |
| 30 Year Term | $68/mo. | $53/mo. | |
| Whole Life | $312/mo. | $256/mo. | |
| 53 | 10 Year Term | $57/mo. | $41/mo. |
| 20 Year Term | $99/mo. | $73/mo. | |
| 30 Year Term | $190/mo. | $141/mo. | |
| Whole Life | $814/mo. | $561/mo. | |
| 63 | 10 Year Term | $157/mo. | $102/mo. |
| 20 Year Term | $304/mo. | $203/mo. | |
| Whole Life | $1,884/mo. | $1,224/mo. | |
| 73 | 10 Year Term | $500/mo. | $324/mo. |
| Whole Life | N/A | N/A |
Average Life Insurance Cost for Smokers
Below are some of the best term and whole life insurance rates on the market for males and females, who are smokers, but in otherwise good health.
Note: All term and whole life policies are for $500,000 of life insurance coverage.
| Age | Policy | Male | Female |
|---|---|---|---|
| 23 | 10 Year Term | $50/mo. | $38/mo. |
| 20 Year Term | $65/mo. | $49/mo. | |
| 30 Year Term | $96/mo. | $66/mo. | |
| Whole Life | $520/mo. | $392/mo. | |
| 33 | 10 Year Term | $54/mo. | $44/mo. |
| 20 Year Term | $81/mo. | $65/mo. | |
| 30 Year Term | $133/mo. | $97/mo. | |
| Whole Life | $648/mo. | $520/mo. | |
| 43 | 10 Year Term | $99/mo. | $81/mo. |
| 20 Year Term | $172/mo. | $126/mo. | |
| 30 Year Term | $285/mo. | $198/mo. | |
| Whole Life | $1,376/mo. | $1,008/mo. | |
| 53 | 10 Year Term | $237/mo. | $169/mo. |
| 20 Year Term | $398/mo. | $282/mo. | |
| 30 Year Term | $649/mo. | $410/mo. | |
| Whole Life | $3,267/mo. | $2,530/mo. | |
| 63 | 10 Year Term | $578/mo. | $382/mo. |
| 20 Year Term | $873/mo. | $694/mo. | |
| Whole Life | $6,936/mo. | $4,584/mo. | |
| 73 | 10 Year Term | $1,651/mo. | $872/mo. |
| Whole Life | N/A | N/A |
Average Cost for No Medical Exam Life Insurance
Below are some of the best no medical exam life insurance rates on the market for males and females.
Note: all policies are seeking $25,000 of life insurance coverage.
| Age | Policy | Male | Female |
|---|---|---|---|
| 23 | 10 Year Term | $8/mo. | $7/mo. |
| 20 Year Term | $8/mo. | $8/mo. | |
| 30 Year Term | $9/mo. | $9/mo. | |
| Whole Life | $11/mo. | $9/mo. | |
| 33 | 10 Year Term | $9/mo. | $8/mo. |
| 20 Year Term | $10/mo. | $9/mo. | |
| 30 Year Term | $11/mo. | $11/mo. | |
| Whole Life | $16/mo. | $13/mo. | |
| 43 | 10 Year Term | $12/mo. | $10/mo. |
| 20 Year Term | $13/mo. | $13/mo. | |
| 30 Year Term | $14/mo. | $14/mo. | |
| Whole Life | $21/mo. | $20/mo. | |
| 53 | 10 Year Term | $20/mo. | $16/mo. |
| 20 Year Term | $25/mo. | $20/mo. | |
| 30 Year Term | $43/mo. | $35/mo. | |
| Whole Life | $34/mo. | $30/mo. | |
| 63 | 10 Year Term | $40/mo. | $30/mo. |
| 20 Year Term | $70/mo. | $57/mo. | |
| Whole Life | $57/mo. | $47/mo. | |
| 73 | 10 Year Term | $116/mo. | $95/mo. |
| Whole Life | N/A | N/A |
How Can I Find Low-Cost Life Insurance?
The most important part of lowering your cost for life insurance is to get quotes from multiple companies and compare.
Working with an independent agency or website can make it significantly easier to compare multiple different options at once, to find the best life insurance rates for you. Independent agents who work with multiple carriers can get you quotes from the best life insurance companies.
You also need to make sure you choose the right type of life insurance so that you only buy what you need. Many agents will try to sell you more than you need, so educating yourself is a way to avoid overpaying.
First, let’s take a look at the two main types of life insurance policies offered on the market.
The Most Common Types of Life Insurance Policies
Unsurprisingly, one of the biggest influencers of the cost of a life insurance policy is the specific type of policy you are applying for.
Naturally, if you only want a small amount of coverage for a limited amount of time, your policy will cost less. Wanting more extensive coverage and things such as riders, cash value, and convertibility options can often make a life insurance policy cost more.
Term Life Insurance Policies
Term life insurance offers coverage that will last for a specific “term.” Usually, this term will be for 10, 20, or 30 years, though there is a significant amount of variation throughout the industry.
These policies are the most popular due to their relative affordability. Some term life insurance policies will cost less than $10 per month.
Permanent Life Insurance
On the other hand, will provide you with coverage that lasts for your entire life. Additionally, many of these policies will also include a “cash value” which is a tangible financial asset that can be accessed while you are still alive.
Due to the increased length and depth of these policies, permanent life insurance coverage will often cost more.
How Much Life Insurance Should I Get?
The amount of coverage you are applying for, which can vary anywhere from $1,000 to even $5,000,000, will also have a significant impact on your monthly premiums.
Though a $5,000,000 policy will not cost 1,000 times as much as a $5,000 policy, the cost of the larger policy will be significantly greater.
Other policy variables that affect the cost of a life insurance policy include add-ons frequently referred to as riders. Life insurance policy riders include things such as disability insurance, other types of insurance, and the incorporation of additional financial assets.
Riders, by definition, are optional. If you choose to add any riders to a policy, the monthly cost of that policy will naturally increase.
FAQ’s About Life Insurance Cost
Below are common questions people ask about the cost of life insurance.
How Much Does Health Affect the Cost of Life Insurance?
Health is among the most important variables that will be considered during the underwriting process.
Because there are a wide variety of common health issues that can decrease your life expectancy (and thus change the projected payout for the insurance provider), many life insurance policies will require a thorough medical exam and questionnaire before offering you a final quote.
Some of the most common medical conditions that can affect the cost of a policy are:
Additionally, because smoking statistically decreases your life expectancy, this is also something that will often be considered.
Smokers receive some of the highest risk classifications, other than people with terminal illnesses, which can cause life insurance rates for smokers to be 2-5 times more expensive than non-smokers.
If you are able to quit smoking, lose weight, or overcome a disease, many life insurance providers will be willing to adjust your rates downward in the future.
What if I Can’t Afford Life Insurance?
Occasionally, people become very ill and need life insurance coverage for their families.
In this case, or in the case of someone who is a high-risk individual who cannot afford traditional life insurance options, no medical exam life insurance might be for you.
There are a few types of no medical exam life insurance available.
Guaranteed Issue Life Insurance
Guaranteed acceptance life insurance is exactly what it sounds like. In this type of policy, coverage is guaranteed for the whole life of the person. Almost anyone can be approved for this type of policy.
As a result, policy coverage is low, usually only going up to $50,000, with a few coverage options stretching to $100,000. Also, rates are higher than traditional life insurance policies.
Simplified Issue Life Insurance
Simplified issue life insurance policies also have no medical exam, but do ask a few questions about your health history and family history, and sometimes can ask more questions.
These policies do not provide coverage as quickly as guaranteed issue, but provide life insurance coverage at a cheaper rate.
How Much Does Age Affect Life Insurance Cost?
Age will also have a significant impact on the cost of a life insurance policy. This is particularly true for term policies.
When all else is equal, the older you are, the closer you will be to passing away. Because such a fact of life is simply unavoidable, age will often have a greater impact on the underwriting process than any other variable.
However, just because being older will increase your monthly premiums, that does not mean you should dismiss the possibility of securing a reasonably priced policy.
How Does Gender Affect the Price of Life Insurance?
Of the different variables that have been mentioned in this article, gender probably has the least amount of impact on the cost of a policy.
Women will typically pay less per month for life insurance coverage, but the increase in cost for men will not be nearly as great as it would be if they were smokers, had serious medical conditions, or were even just five years older.
Find Out How Much Your Life Insurance Will Cost
Life insurance is a valuable component of your financial portfolio that can have a major impact on your family’s financial security. Applying for a life insurance policy is a conservative investment that will frequently pay off over time.
Depending on your age, health, lifestyle, career, and family history, you can experience a large variation for life insurance cost.
However, after reading this article, you should have a good idea of how much life insurance costs for you.
In order to find the best life insurance coverage for your specific situation, use our quoting engine, or give us a call today!
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