How Much Does Life Insurance Cost? Rates by Age and Policy Type

Insurance providers evaluate a range of factors to determine premiums on life insurance. Common factors they consider include:

Given each person's situation, reviewing personal needs and comparing multiple life insurance quotes is important to secure the best possible rates.

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.

Term life insurance is the lowest-cost life insurance policy type available. Here's why:

• Temporary coverage - Protects for a specific period (10, 20, or 30 years) rather than lifetime
• No cash value - Provides pure death benefit (a payment when you die for the coverage amount)without expensive investment components with whole life.
• Lower risk to insurers - Most policyholders outlive their terms, reducing company payouts

The benefits to buyers are: 

• Affordability: Significantly lower premiums than whole or universal life policies, allowing you to secure substantial coverage on a budget.  See our ranking of the cheapest life insurance companies or get cost estimates with our quote calculator.
• High coverage amounts - Typically provides 10× your annual income at affordable rates. See how much life insurance you need.
• Ideal timing - Perfect for young families needing maximum protection during financially vulnerable years with mortgages and childcare expenses
• Level premiums: Most term policies lock in your rate for the entire term, making budgeting predictable.
• Tax advantages: Death benefits are generally income tax-free to beneficiaries.

Age significantly influences rates for term life insurance cost.  Older individuals are a higher risk to insurers, resulting in increased coverage costs. 

For a 10-year term policy with $250,000 in coverage, a 30-year-old man would pay an average monthly life insurance cost of $14. In contrast, a 60-year-old man would pay $76 per month, amounting to $744 more per year than a 30-year-old would pay for the same life insurance policy. A 70-year-old man would face an even higher premium of $204 per month, or $2,448 per year.

You should 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.

Insurance companies charge men more for life insurance because of statistical life expectancy differences. Men typically have shorter lifespans than women, which insurers consider a higher risk factor. 

For example, a 50-year-old woman would pay approximately $31 monthly for a $250,000, 10-year term policy, while a man of the same age would pay about $37 for identical coverage—roughly 19% more.

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

Smoking significantly impacts term life insurance costs due to the health risks associated with tobacco use. Insurers classify smokers as higher-risk applicants because smoking increases the likelihood of developing various health issues, such as heart disease, lung cancer and other serious illnesses.

As a result, smokers face considerably higher life insurance premiums than nonsmokers. Depending on other factors, term insurance rates can be double or even triple that of nonsmokers. For example, the average cost of term life insurance for 40-year-old smokers is $41. Meanwhile, the average life insurance premium for a 40-year-old nonsmoker is only $18. This price adjustment reflects the increased risk and potential for earlier claims that insurers must account for when underwriting policies for smokers.

The term life insurance rate chart by age below shows the typical life insurance rates for smokers across different ages and coverage amounts.

Your health rating provides a snapshot of your overall well-being and potential risk to the insurer. Excellent health often translates to lower risk and lower life insurance premiums. Conversely, poor health indicates higher risk, leading to higher life insurance rates.

For example, a 40-year-old man seeking a $250,000 10-year term life policy would pay an average monthly premium of $20 if he is in poor health, compared to $18 for the same individual in excellent health. This comparison highlights the financial benefit of maintaining good health when it comes to life insurance costs.

Navigate the term life insurance rates chart below to see the average term life insurance rates by age for individuals with poor health.

The term 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.

Use the term insurance rates chart below to compare 10-year term life insurance rates and 20-year term life insurance rates by age.

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 $18. 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.

Refer to the term life insurance rates chart below to compare the average monthly cost of term life insurance for different coverage amounts for various ages.

We found that state regulations can impact what you pay for life insurance. While your health and age primarily determine your rates, each state has unique insurance rules that affect pricing.

We discovered that different states impose varying taxes on premiums and have distinct regulatory requirements for insurers. For instance, California has specific rules about HIV testing during the application process, which can influence how policies are underwritten.

Our research also shows that administrative costs and market competition in each state contribute to these price differences also

Below, we've compiled the average monthly term life insurance costs by state to help you understand how your location might affect what you pay.

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 typically cost 5-15 times more than term life for the same death benefit amount. This significant price difference reflects:

• Permanent protection - Coverage never expires as long as premiums are paid
• Cash value growth - Part of your premium builds tax-advantaged savings
• Policy guarantees - Fixed premiums, guaranteed death benefits, and minimum cash value growth rates
• Potential dividends - Many whole life policies are eligible for company dividends, though these aren't guaranteed

To learn more see our resources to help you compare life insurance companies, costs, and policy types.  Also  see our comparison of policy types to understand the difference between whole and term life.

Determining the right amount of life insurance coverage depends on several financial factors specific to each individual or family. Here are essential considerations to help you decide:

• Debt: Add up outstanding debts, like a mortgage, car loans and credit card balances. Covering these amounts with life insurance ensures that family members won’t inherit these financial obligations.
• Income Replacement: Many financial advisors suggest getting enough coverage to replace income. A general guideline suggests around 10 to 15 times your annual income.
• Education Costs: If you have children, include future education expenses, such as college tuition, to help secure their educational goals.

Using a life insurance needs calculator will allow you to get the right coverage at an affordable cost.

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.