Depending on whether you choose term or permanent life insurance, your premiums can vary widely because of different policy features and coverage durations. The sections compare the average life insurance cost by type of life insurance:
How Much Does Life Insurance Cost? 2025 Average Rates
Average life insurance cost varies by age, health and policy type. For a 20-year term policy with $500,000 coverage, the average cost is $55 per month.
Find out if you're overpaying for life insurance below.
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Updated: November 5, 2025
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Key Takeaways
The average life insurance cost for a healthy 40-year-old nonsmoker is $55 per month for a 20-year, $500,000 term life policy. Whole life insurance averages $667 per month, while universal life insurance costs about $294 per month.
Permanent life insurance costs more than term life because it provides lifelong coverage, cash value growth and guaranteed death benefits. Term policies are temporary and usually more affordable.
Health and lifestyle can also affect life insurance premiums. Smokers and people with medical conditions pay higher rates than nonsmokers and those in good health.
How Much is Life Insurance?
Term | $55 | $657 |
Universal | $294 | $3,528 |
Whole | $667 | $8,009 |
*The rates above are averages for our base profile: 40-year-old male nonsmoker with average weight and health level, and a $500,000 policy. For term life insurance, we used 20-year term length quotes. Actual life insurance prices vary depending on the applicant's profile and the insurance company.
Average Cost of Term Life Insurance
Term life insurance rates depend on four key factors: coverage amount, age, gender and policy term length. Age and coverage amount can have the largest impacts to your rate, with rates growing as you get older and seek greater coverage. Your health status and smoking habits can also affect your rates. Consider buying life insurance at a younger age when prices are more affordable to lock in lower rates.
Term Life Insurance Rates By Age
The monthly rates shown here are for 20-year term life insurance policies at $500,000 coverage for different ages of people at average health, height, and weight.
25 | $28 | $34 | $88 | $107 |
30 | $29 | $36 | $92 | $111 |
35 | $34 | $40 | $106 | $122 |
40 | $46 | $55 | $143 | $170 |
45 | $66 | $84 | $209 | $264 |
50 | $95 | $128 | $303 | $407 |
55 | $143 | $201 | $457 | $645 |
60 | $250 | $254 | $815 | $1,146 |
Term Life Insurance Rates By Coverage Level
The monthly rates shown here are for 20-year term life insurance policies for 40-year-olds of average health, height, and weight.
$100,000 | $16 | $19 | $51 | $60 |
$250,000 | $27 | $32 | $84 | $100 |
$500,000 | $46 | $55 | $143 | $170 |
$1,000,000 | $84 | $99 | $273 | $322 |
$1,500,000 | $124 | $147 | $403 | $475 |
$2,000,000 | $156 | $190 | $498 | $604 |
$3,000,000 | $226 | $280 | $721 | $892 |
Average No-Exam Life Insurance Costs
No-exam life insurance policies allow you to bypass medical exams when securing coverage. These are good options for people who want faster approval or have health concerns. No-exam policies cost more than standard policies, as insurance companies take on more risk.
No-Exam Life Insurance Rates By Age
These are monthly rates for 20-year term no-exam policies at $500,000 coverage for different ages. We organized rates by preferred and standard risk classes.
25 | $22 | $28 | $28 | $36 |
30 | $23 | $29 | $29 | $37 |
35 | $28 | $32 | $35 | $40 |
40 | $40 | $45 | $50 | $54 |
45 | $55 | $68 | $69 | $86 |
50 | $80 | $105 | $100 | $132 |
55 | $125 | $176 | $157 | $223 |
60 | $231 | $324 | $291 | $408 |
No-Exam Life Insurance Rates By Coverage Level
These are monthly rates for 20-year term no-exam policies at $500,000 coverage for 40-year-olds at different coverage levels. We organized rates by preferred and standard risk classes.
$100,000 | $14 | $16 | $18 | $20 |
$250,000 | $24 | $27 | $30 | $33 |
$500,000 | $40 | $45 | $50 | $54 |
$1,000,000 | $67 | $83 | $85 | $105 |
$1,500,000 | $106 | $134 | $137 | $173 |
$2,000,000 | $143 | $183 | $188 | $241 |
$3,000,000 | $212 | $271 | $280 | $359 |
Average Whole Life Insurance Costs
Whole life insurance provides lifetime coverage with a cash value component that grows over time, unlike term life which only covers a specific period with no investment element. Whole life policies cost more than term life due to permanent coverage, cash value accumulation, guaranteed benefits with fixed premiums, and potential dividends.
Whole Life Insurance Rates By Age
Here are average monthly rates for $500,000 whole life insurance policies for people of average health, height and weight at different ages.
25 | $310 | $364 | $568 | $664 |
30 | $399 | $444 | $733 | $811 |
35 | $490 | $545 | $896 | $992 |
40 | $605 | $667 | $1,103 | $1,216 |
45 | $767 | $856 | $1,396 | $1,557 |
50 | $1,025 | $1,146 | $1,863 | $2,085 |
55 | $1,322 | $1,505 | $2,404 | $2,736 |
60 | $1,738 | $2,052 | $3,157 | $3,728 |
Whole Life Insurance Rates By Coverage Level
Here are average monthly rates for whole life insurance policies at different coverage levels for 40-year-olds of average health, height and weight.
$100,000 | $121 | $133 | $221 | $243 |
$250,000 | $302 | $334 | $551 | $608 |
$500,000 | $605 | $667 | $1,103 | $1,216 |
$1,000,000 | $1,209 | $1,335 | $2,205 | $2,432 |
$1,500,000 | $1,814 | $2,002 | $3,308 | $3,649 |
$2,500,000 | $3,024 | $3,337 | $5,513 | $6,081 |
Average Universal Life Insurance Costs
Universal life insurance offers flexible premiums and an adjustable death benefit, making it more adaptable than traditional whole life. It also includes a cash value component that grows tax-deferred.
Universal Life Insurance Rates By Age
Here are average monthly rates for $500,000 universal life insurance policies for people of average health, height and weight at different ages.
25 | $151 | $171 | $277 | $312 |
30 | $184 | $203 | $338 | $370 |
35 | $216 | $241 | $395 | $439 |
40 | $254 | $294 | $463 | $536 |
45 | $312 | $355 | $567 | $646 |
50 | $393 | $448 | $714 | $815 |
55 | $493 | $566 | $897 | $1,028 |
60 | $627 | $736 | $1,140 | $1,336 |
Universal Life Insurance Rates By Coverage Level
Here are average monthly rates for universal life insurance policies at different coverage levels for 40-year-olds of average health, height and weight.
$100,000 | $51 | $59 | $93 | $107 |
$250,000 | $127 | $147 | $232 | $268 |
$500,000 | $254 | $294 | $463 | $536 |
$1,000,000 | $508 | $588 | $927 | $1,072 |
$1,500,000 | $762 | $882 | $1,390 | $1,607 |
$2,500,000 | $1,270 | $1,470 | $2,317 | $2,679 |
What Factors Affect the Cost of Life Insurance?
Insurance providers evaluate a range of factors to determine premiums on life insurance. Common factors they consider include:
Age
Younger applicants typically receive lower rates due to a lower risk profile.
Health
Those with good health records will have lower life insurance costs. Factors like BMI, blood pressure, and history of disease will impact your cost.
Lifestyle
Choices such as smoking or engaging in high-risk hobbies can lead to increased life insurance costs.
Coverage Amount
Higher life insurance policy amounts tend to come with higher premiums.
Term Length
Longer terms can increase costs by extending the period during which the insurer is at risk.
Type of Policy
Whether term or permanent, the type of life insurance policy significantly influences the pricing.
While gender may also impact life insurance rates, some states restrict or prohibit the use of gender in life insurance pricing. Rates in your state may vary based on local regulations.
Given each person's situation, reviewing personal needs and comparing multiple life insurance quotes is important to secure the best possible rates.
How to Lower Life Insurance Costs
Life insurance premiums reflect controllable and uncontrollable factors. You can lower your life insurance costs by following these strategies before applying for coverage:
- 1Evaluate Policy Types
Term policies are the lowest-cost and most flexible option. Whole life is an investment account with death benefits, but it's much more expensive.
- 2Buy early
Get a policy when you're younger to lock in lower rates before health conditions develop or age increases premiums by 8-10% annually.
- 3Right-size your coverage
Calculate only what you need based on income replacement, debts and future expenses to avoid paying for unnecessary protection.
- 4Improve health metrics
To qualify for better rate classifications, quit smoking, maintain a healthy weight and lower cholesterol/blood pressure.
- 5Compare multiple quotes
Get quotes from at least 3-5 insurance companies using independent agents or online comparison tools to find the best rates.
Life Insurance Cost: FAQ
We have answered some frequently asked questions about the average life insurance cost to give you an idea of how much your life insurance would cost and how insurers calculate premiums.
How much is life insurance per year?
Annual life insurance costs vary by policy type and applicant profile. A 20-year term policy with $500,000 coverage costs an average of $657 annually for healthy 40-year-old nonsmokers. Whole life insurance policies for identical profiles cost around $8,009 annually.
Do life insurance premiums increase with age?
Yes. Life insurance costs are based on your age when you buy. Younger buyers get lower rates because they pose less risk.
Term life premiums stay the same during the policy term, but any new or renewed coverage will cost more at an older age. Whole life premiums never change once issued.
How can I get the best life insurance rates?
You can get the best life insurance rates by comparing quotes from multiple providers, considering both cost and coverage options. MoneyGeek's tools help you compare life insurance costs based on your needs and budget.
How much life insurance do I need?
The common rule of thumb to assess your life insurance need is to muliply your income by 10-12 times. This is enough for most people to cover lost earnings and major expenses like mortgages, debts, education, and living expenses. Use our life insurance calculator to quickly determine your coverage needs and get instant quotes.
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Our Methodology
Your age, health, lifestyle, gender and coverage needs all influence your premium, so we collected quotes across multiple demographic profiles to show you realistic pricing for different situations.
Our Research Approach
We gathered thousands of quotes across multiple demographics to calculate average life insurance costs. We collected quotes from major insurers to show what you'd pay based on your profile and coverage needs.
Sample Customer Profile
MoneyGeek used a standard profile to obtain life insurance quotes:
- 40-year-old man
- Nonsmoker
- 5 feet 9 inches tall and 160 pounds
- Average health rating
For quotes for women, we used a 5'4" and 120-pound profile to reflect realistic demographic differences in pricing.
Coverage Types and Terms
We collected quotes for the most popular life insurance options:
- Term life insurance with varying term lengths and coverage amounts
- Whole life insurance quotes for different coverage levels
- Universal life insurance across multiple policy amounts
This approach shows you the real cost differences between temporary coverage (term) and permanent policies that build cash value.
Data Analysis
Beyond collecting individual quotes, we identified pricing trends across our dataset. These patterns allowed us to calculate projections and extend our analysis beyond the original quotes, giving you a fuller picture of how rates change across different demographics and coverage amounts.
Why This Methodology Works for You
Life insurance pricing depends heavily on personal factors, so generic industry averages don't help when budgeting for coverage. Our multi-demographic approach shows you realistic rate expectations.
Data Recency
All pricing and company data were last updated in 2025, ensuring current market rates inform our recommendations and comparisons.
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About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.