Average Cost of Life Insurance in May 2024

The average cost of life insurance in the United States for a 10-year, $250,000 term life insurance policy for a healthy 40-year-old man is $23 per month. Factors like age, health and lifestyle significantly influence life insurance costs. For example, a 50-year-old with the same profile and policy would pay a monthly premium of $45. Understanding how personal characteristics can affect the cost of life insurance can help you make more informed decisions as you plan for your future.

The average cost of life insurance for a 40-year-old man who is a nonsmoker in excellent health and seeking a $250,000 10-year term policy is $23 per month. In comparison, a woman of the same age and health profile would pay around $19 monthly for the same policy. Life insurance pricing varies significantly based on individual circumstances, including gender, with women generally paying less due to longer life expectancy.

Policy type and coverage amount are also significant factors in determining cost. Term life insurance policies, which last for a specific period, are typically more affordable than the cost of whole life insurance policies that provide lifelong coverage. The amount of coverage you choose influences the premium, with higher coverage amounts resulting in higher rates.

To find the best premiums tailored to your needs, consider comparing life insurance quotes from several insurance providers. This can help you compare costs and get a comprehensive view of the available options.

Age significantly influences life insurance rates, as older individuals present a higher risk to insurers, resulting in increased coverage costs. The probability of health issues, which escalates with age, further amplifies this risk.

For a 10-year term policy with $250,000 in coverage, a 30-year-old man would pay an average monthly cost of $16. In contrast, a 60-year-old man would pay $91 per month, amounting to $900 more per year than a 30-year-old would for the same life insurance policy. A 70-year-old man would face an even higher premium of $243 per month, or $2,916 per year.

The age-related increase in premiums underscores why you may want to consider buying life insurance at a younger age, when life insurance prices are generally more affordable, and you can lock in the coverage at a lower rate.

Refer to our chart below for a detailed look at the average monthly costs by age for term life insurance.

Gender plays a role in determining life insurance premiums, often resulting in men paying more than women. This difference is primarily due to actuarial life expectancies; on average, women tend to live longer than men.

Insurance companies use this data to assess risk. Since men have shorter life expectancies, insurers view them as higher risk, leading to higher life insurance rates. To illustrate this impact, consider a 10-year term policy with $250,000 in coverage: a 50-year-old woman would face an average monthly life insurance cost of $31, while a 50-year-old man would pay $37.

This gender-based pricing reflects the insurer's risk assessment, considering the average lifespan and health profiles of men and women. It underscores the importance of understanding how various factors, including gender, can influence the cost of life insurance.

The table below shows the average monthly life insurance policy cost for female and male policyholders.

Coverage amounts directly correlate with life insurance costs. Typically, the more coverage you seek, the higher the life insurance price. This association is because the insurance company's potential payout increases with the coverage amount, as does the risk they assume.

For example, a 40-year-old man opting for a 10-year term policy with $250,000 life insurance coverage would pay a monthly average of $23. If he chooses $500,000 in life insurance coverage, the term life insurance cost increases to $29; for $1 million in life insurance coverage, it jumps to $53 per month. These figures illustrate how the coverage amount can impact the cost, helping you understand the financial implications of your selected coverage level.

Use our table below to compare the average monthly cost of term life insurance for different coverage amounts for various ages.

The term length of the policy plays a significant role in the life insurance rates. For instance, for a 60-year-old man seeking a 10-year term life insurance policy with $250,000 in coverage, the average monthly life insurance cost would be $76. If he opts for a 20-year term life insurance policy with the same coverage amount, the monthly premium increases to $150.

This increase shows how the length of coverage can substantially affect the cost. A longer-term policy means the insurance company is committing to a rate for an extended period, during which health risks may increase. The insurer charges more to offset this additional risk.

The term insurance rates chart below demonstrates the average monthly costs of 10-year and 20-year term life insurance policies.

Your health rating provides a snapshot of your overall well-being and potential risk to the insurer. A 50-year-old man with excellent health would pay an average monthly life insurance cost of $37 for a 10-year term policy with $250,000 in coverage. However, if the same man has a poor health rating, the premium would increase to $41 for the same policy.

This change in cost reflects the insurer's assessment of the likelihood of health-related issues arising during the policy term. Excellent health often translates to lower risk and lower premiums. Conversely, poor health indicates higher risk, leading to higher life insurance rates.

Navigate the table below to see the average monthly cost of term life insurance by health rating. You can also check average life insurance costs for different coverage amounts.

The state you live in can significantly impact your life insurance premiums. Different states have varying regulations, costs of living and mortality rates, all of which can influence your life insurance rates. For example, a state with higher medical costs might increase premiums as the insurer anticipates higher expenses.

Additionally, some states have specific regulations that impact how insurers can calculate premiums, leading to variations in cost across state lines. In California, for instance, regulations govern the use of HIV testing in the underwriting process for life insurance, requiring insurers to obtain written informed consent before administering the test. This focus on consent and the limitations placed on how insurers can use policyholder information can impact the underwriting process and, consequently, the premiums for life insurance policies.

Understanding how your location plays a role in determining your life insurance premiums can provide insight into the pricing and help you make a more informed decision when selecting a policy.

The table below includes each state's average monthly cost of term life insurance, reflecting how regional factors can influence rates.

Permanent life insurance typically costs more than term life insurance due to its lifelong coverage and additional features. While term life insurance provides coverage for a specific period, permanent life insurance offers coverage for the insured's entire life, along with a cash value component that can grow over time. The same factors determine permanent life insurance costs as term policies, but the additional feature of cash value accumulation further increases premiums.

The main types of permanent life insurance are whole life and universal life. Whole life insurance ensures fixed premiums and guaranteed growth in cash value, whereas universal life insurance allows for greater flexibility in premiums and investment choices.

The costs of both term and permanent life insurance policies can vary due to factors such as age, gender, health and more. Because everyone is different, no two policies will be the same. For instance, your friend of the same age with the same coverage may pay more or less in premiums.

While many personal characteristics influence the cost of life insurance, several factors typically do not impact premiums. Among these non-influential factors are:

Understanding what does not affect life insurance premiums can allow you to focus on the factors that do matter, such as age, health, lifestyle, coverage amount and policy type.

To help you better understand the average cost of life insurance, here are some commonly asked questions that shed light on how insurers determine these costs and what you might expect to pay.