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.
Average Cost of Life Insurance in May 2024
The average cost of life insurance in 2024 is $23 per month. Life insurance rates vary based on age, health and policy type. Understanding average costs can help you budget and ensure you're not overpaying for coverage.
Updated: October 30, 2024
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Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes to determine the average cost of life insurance for a variety of needs.
We updated coverage costs and company information for life insurance providers in 2024.
Key Takeaways
A 10-year, $250,000 term life insurance policy can have an average monthly cost between $16 and $273, depending on your age, gender and other factors.
Term life and permanent life are the two main types of life insurance policies. Term life policies expire after a set number of years, while permanent life insurance policies do not.
Permanent life insurance policies are typically more expensive than term life policies because they have a cash value component that provides tax-free investment.
How Much Is Life Insurance?
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.
Average Term Life Insurance Cost by Age
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.
30 | $16 | $20 |
40 | $23 | $29 |
50 | $45 | $64 |
60 | $91 | $164 |
70 | $243 | $752 |
Average Term Life Insurance Cost by Gender
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.
- 30
- 40
- 50
- 60
- 70
Female | $19 | $24 |
Male | $23 | $29 |
Average Term Life Insurance Cost by Coverage Amount
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.
- 30
- 40
- 50
- 60
- 70
$1 Million | $ 53 | $ 83 |
$250K | $ 23 | $ 29 |
$500K | $ 29 | $ 44 |
Average Term Life Insurance Cost by Term Length
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.
- 30
- 40
- 50
- 60
- 70
10-Year Term | $ 23 | $ 29 | $ 53 |
20-Year Term | $ 29 | $ 44 | $ 83 |
Average Term Life Insurance Cost by Health Rating
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.
- 30
- 40
- 50
- 60
- 70
- $1 Million
- $250K
- $500K
Poor | $ 25 | $ 32 |
Excellent | $ 23 | $ 29 |
Average Term Life Insurance Cost by State
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.
- 30
- 40
- 50
- 60
- 70
- $1 Million
- $250K
- $500K
Alabama | $ 16 | $ 21 |
Alaska | $ 20 | $ 23 |
Arizona | $ 30 | $ 39 |
Arkansas | $ 24 | $ 30 |
California | $ 20 | $ 25 |
Colorado | $ 20 | $ 25 |
Connecticut | $ 12 | $ 15 |
Delaware | $ 17 | $ 23 |
Florida | $ 16 | $ 20 |
Georgia | $ 27 | $ 35 |
Hawaii | $ 16 | $ 22 |
Idaho | $ 24 | $ 32 |
Illinois | $ 19 | $ 23 |
Indiana | $ 27 | $ 33 |
Iowa | $ 27 | $ 35 |
Kansas | $ 28 | $ 37 |
Kentucky | $ 14 | $ 18 |
Louisiana | $ 28 | $ 35 |
Maine | $ 15 | $ 19 |
Maryland | $ 12 | $ 14 |
Massachusetts | $ 15 | $ 21 |
Michigan | $ 17 | $ 21 |
Minnesota | $ 18 | $ 22 |
Mississippi | $ 27 | $ 32 |
Missouri | $ 16 | $ 20 |
Montana | $ 15 | $ 19 |
Nebraska | $ 16 | $ 21 |
Nevada | $ 18 | $ 22 |
New Hampshire | $ 11 | $ 13 |
New Jersey | $ 13 | $ 15 |
New Mexico | $ 23 | $ 28 |
New York | $ 11 | $ 13 |
North Carolina | $ 16 | $ 21 |
North Dakota | $ 28 | $ 37 |
Ohio | $ 16 | $ 21 |
Oklahoma | $ 25 | $ 32 |
Oregon | $ 10 | $ 13 |
Pennsylvania | $ 17 | $ 21 |
Rhode Island | $ 9 | $ 11 |
South Carolina | $ 16 | $ 20 |
South Dakota | $ 24 | $ 33 |
Tennessee | $ 17 | $ 21 |
Texas | $ 30 | $ 37 |
Utah | $ 17 | $ 21 |
Vermont | $ 16 | $ 20 |
Virginia | $ 20 | $ 23 |
Washington | $ 22 | $ 27 |
West Virginia | $ 15 | $ 19 |
Wisconsin | $ 17 | $ 22 |
Wyoming | $ 18 | $ 22 |
Permanent Life Insurance 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.
Permanent life insurance may not be a viable choice for everyone. However, if it's feasible for you, given your budget and needs, consider the following reasons why a permanent life insurance policy might be a great choice:
- It provides a tax-free investment feature you can utilize while still alive.
- It offers flexibility, as you can adjust whole life insurance to your current financial situation.
- It lasts throughout your entire life and does not need renewal.
- It offers fixed premiums, which means you only pay one set price throughout your life.
When considering permanent life insurance, we recommend factoring in the total policy cost to ensure suitability with your unique financial goals and situation.
Factors Impacting Life Insurance Rates
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.
Factors That Don't Impact Life Insurance Rates
While many personal characteristics influence the cost of life insurance, several factors typically do not impact premiums. Among these non-influential factors are:
Marital Status
Whether you are single, married, divorced or widowed usually has no bearing on the cost of your life insurance policy.
Income Level
Your earnings or income bracket generally don't affect the premiums, as life insurance is more concerned with covering financial obligations rather than replacing income.
Children
Insurers usually don't consider the number of children you have when determining your premiums.
Education Level
Your educational background or degrees are not factors that insurers consider when calculating costs.
Race or Ethnicity
Insurers in the United States are prohibited from using race or ethnicity to determine premiums.
Location Within a State
While state regulations can affect premiums, your specific location within a state, such as your city or neighborhood, typically doesn't impact the cost.
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.
How to Lower Life Insurance Premiums
It may seem like life insurance premiums are set by factors you can’t control, but there are ways you can lower your costs. Follow these tips before applying for life insurance to secure a more affordable policy.
Don’t Rush Your Decision
Take your time choosing a life insurance policy. It's a long-term commitment that should align with your future needs. Carefully assess your current situation and future goals, considering factors like family, financial obligations and retirement planning. A well-thought-out decision ensures that you select coverage that provides peace of mind for years to come.
Make Sure You’re Getting the Right Type of Coverage
Evaluate both term and permanent life insurance options, as each serves a different purpose. Term life insurance costs may be lower initially, but permanent coverage offers lifelong protection and a cash value feature that may better align with long-term financial goals. Understanding the features and benefits of each type helps you select the one that best fits your needs.
Shop Around
Don't settle for the first policy offered. Different insurers may weigh your age, gender and health differently, leading to variations in rates. Compare quotes from multiple providers, considering the cost, the insurer's reputation, financial stability and customer service. This approach will help you find a policy that offers the best value.
Get Professional Assistance
If you're uncertain about the type of coverage or insurer to choose, consider seeking professional assistance. Independent agents, who aren't tied to a single company, can provide unbiased advice on numerous providers, coverage amounts and policy types. Their expertise can guide you through the landscape of life insurance, helping you make an informed decision. You can also go to an agent that exclusively represents a life insurance company to seek advice and further information on what life insurance policy may suit you.
Buy Your Policy as Early as Possible
While it's wise not to rush the process, purchasing life insurance as early as possible can lead to lower premiums. Since age is a significant factor in determining life insurance rates, securing a policy when you’re younger is generally less costly. Balancing the need for careful consideration with the benefits of early purchase can result in substantial savings over the policy's life.
FAQ About the Average Cost of Life Insurance
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.
The average cost of term life insurance is $23 monthly for a 10-year, $250,000 policy for a healthy 40-year-old man. This cost could vary based on factors such as health condition, lifestyle choices like smoking, occupation, gender and the insurer's specific underwriting guidelines.
The coverage amount and individual profile affect 20-year term life insurance rates. For example, the average cost of life insurance per month for a healthy 40-year-old is:
- $29 for a $250,000 coverage amount
- $44 for a $500,000 coverage amount
- $83 for a $1 million coverage amount
The cost of whole life insurance per month can vary widely but typically starts higher than term policies due to its lifetime coverage and cash value accumulation.
The state with the lowest average life insurance rate is New Hampshire, where a 10-year term policy costs an average of $9 per month for $250,000 in coverage for a healthy 40-year-old man.
Life insurance premiums can change as you age. For example, take a look at the cost of a 10-year term policy with $250,000 in coverage for a healthy man of various ages:
- 30-year-old: $14 per month on average
- 40-year-old: $18 per month on average
- 50-year-old: $37 per month on average
- 60-year-old: $76 per month on average
- 70-year-old: $204 per month on average
Typically, your life insurance premiums increase with age.
The cost of life insurance is influenced by several factors, including the individual's age, health condition, gender, lifestyle choices, occupation and the type and amount of coverage selected. Additionally, the length of the policy term and specific state regulations can affect premiums. Insurers assess these factors to determine the risk and calculate the appropriate premium.
Yes, you can potentially get lower life insurance rates by maintaining a healthy lifestyle, choosing the right type and amount of coverage, shopping around for competitive quotes, buying a policy at a younger age and consulting with independent or exclusive agents to find the best fit for your needs and budget.
Most life insurer health questionnaires will include a few COVID-19 questions during the application process. According to the Insurance Information Institute, having previously had COVID should not impact your ability to purchase new life insurance coverage. However, if you are experiencing long-term COVID symptoms, that may be considered a chronic condition and could affect your rates.
About Melissa Wylie
Melissa Wylie is the Content and SEO Manager at MoneyGeek, with nearly a decade of editorial experience and six years of work in financial content focused on small businesses. She previously held SEO positions at Bankrate and LendingTree, with bylines on ValuePenguin and MagnifyMoney.
Wylie has a journalism degree from the University of North Texas. Her strong foundation in journalism helps her craft content that simplifies complex financial topics to help everyone feel confident when making decisions with their money.