Updated: May 24, 2025
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A 15-year term life insurance policy offers fixed premiums and guaranteed coverage for 15 years, making it a good fit for mid-term financial needs like mortgage payments, education costs, or debt payoff.
Transamerica, MassMutual and Nationwide are among the most affordable providers for 15-year term policies, offering competitive rates for a wide range of applicants, including smokers and older buyers.
Policy rates vary based on age, health, lifestyle, and coverage amount, with average monthly costs for a healthy 40-year-old starting at around $22.65 for $250,000 in coverage.
A 15-year term life insurance policy provides financial protection for a fixed period of 15 years. If you pass away during the term, your beneficiaries receive a tax-free death benefit. This type of policy is ideal for those seeking affordable, straightforward coverage without lifelong commitment. It’s one of the most popular term lengths, offering a balance between cost and coverage for people in key life stages like parenthood or early mortgage repayment.
On average, a term life policy with $250,000 worth of coverage can cost between $17.85 and $44.37 per month, depending on your age. For smokers, a 15-year term life policy may cost between a monthly average of $76.22 and $259.18, while people in poor health pay between $35.40 and $106.92 monthly, on average. If you have a high BMI, a term life policy would cost an average of between $32.53–93.61. The cost increases with your age and the coverage amount (as shown below).
Policyholder Age | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
30-Year-Old | $17.85 | $22.31 | $38.79 |
40-Year-Old | $22.65 | $30.01 | $54.70 |
50-Year-Old | $44.37 | $66.89 | $120.41 |
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Rates updated:
Jun 06, 2025
When you purchase a 15-year term policy, you agree to pay monthly or annual premiums to keep the policy active for the entire term. If you die within that period, your chosen beneficiaries will receive the policy’s death benefit, which they can use to cover funeral costs, living expenses, mortgage payments, outstanding debts, or educational needs. After 15 years, the policy expires, and no benefit is paid if you outlive the term—unless you convert it or renew it.
A 15-year term life insurance policy is best suited for individuals with financial responsibilities expected to last around 15 years. It's a strong fit for:
Parents with young children who want to fund their upbringing and education
Homeowners with a 10–15 year mortgage
People nearing retirement who want to protect their spouse financially
Young adults looking to shield their family from student loan debt
Whether you’re in your 20s planning ahead or in your 40s managing family obligations, a 15-year term can provide flexible and timely protection.
A 15-year term life insurance policy offers several benefits, but it may not be the right fit for everyone. Here’s a quick look at the pros and cons.
Lower premiums compared to permanent life insurance
Tax-free death benefit for beneficiaries
Option to convert to a whole life policy with some providers
No cash value or savings component
Must meet health qualifications in most cases
The cost of a 15-year term life insurance policy isn’t one-size-fits-all. According to MoneyGeek’s research, your premium is influenced by several key factors, including your age, health, lifestyle habits, and the amount of coverage you choose. Understanding how these elements impact your rate can help you find the most affordable policy for your needs.
Younger people usually get more affordable life insurance quotes because insurers consider them less risky.
Statistically, females have a longer lifespan than men. Therefore, they pose less risk and typically pay less for a term life insurance policy.
Insurance companies usually look at your height and weight, medical records and your family’s medical history to determine if you have or may develop a health condition that can shorten your life.
Lifestyle factors like your smoking habits and criminal record play a significant role in determining your policy’s cost.
Since people who smoke or have poor overall health are more likely to develop serious medical conditions, insurance companies consider them risky to cover. This perception is why these individuals often receive expensive life insurance quotes. MoneyGeek analyzed the cost of life insurance for people who smoke or are in poor health.
Policyholder Age | Smoker | Poor Health | High BMI |
|---|---|---|---|
30-Year-Old | $76.22 | $35.40 | $32.53 |
40-Year-Old | $114.13 | $49.64 | $44.61 |
50-Year-Old | $259.18 | $106.92 | $93.61 |
MoneyGeek analyzed the cost of a term life insurance policy by company and coverage amount to help you save time and money. Our analysis shows that Transamerica usually offers the most affordable life insurance policies with 15-year term lengths for all coverage amounts.
Company | $250,000 | $500,000 | $1,000,000 | |
|---|---|---|---|---|
1. | Transamerica | $11.71 | $16.13 | $22.89 |
2. | Mass Mutual | $13.43 | $18.88 | $28.96 |
3. | Nationwide | $14.29 | $19.06 | $28.06 |
4. | Mutual of Omaha | $14.57 | $19.52 | $32.49 |
5. | AAA | $16.24 | $22.36 | $36.20 |
6. | Progressive | $19.48 | $28.42 | $77.38 |
7. | Prudential | $35.59 | $33.57 | $65.32 |
MoneyGeek's research shows that Transamerica offers the cheapest life insurance policies for smokers, which can cost between an average of $35.13 and $103.02 per month, depending on the coverage amount.
Company | $250,000 | $500,000 | $1,000,000 | |
|---|---|---|---|---|
1. | Transamerica | $35.13 | $60.35 | $103.02 |
2. | Mass Mutual | $40.54 | $72.65 | $119.49 |
3. | Progressive | $44.21 | $77.38 | $180.54 |
4. | Nationwide | $46.32 | $128.11 | $232.39 |
5. | Mutual of Omaha | $48.13 | $87.68 | $168.67 |
6. | AAA | $48.71 | $89.98 | $151.20 |
7. | Prudential | $62.54 | $94.55 | $187.27 |
MoneyGeek's data shows that Mutual of Omaha typically offers the cheapest 15-year term life insurance policies for people who have poor health. On average, its policies cost between $14.57 and $32.49 monthly, depending on the coverage amount.
Company | $250,000 | $500,000 | $1,000,000 | |
|---|---|---|---|---|
1. | Mutual of Omaha | $14.57 | $19.52 | $32.49 |
2. | Transamerica | $18.21 | $28.10 | $44.75 |
3. | Mass Mutual | $22.64 | $36.86 | $62.64 |
4. | Nationwide | $25.14 | $36.53 | $61.94 |
5. | AAA | $25.82 | $43.66 | $78.80 |
6. | Progressive | $29.48 | $47.90 | $77.38 |
7. | Prudential | $30.99 | $52.39 | $94.55 |
MoneyGeek’s analysis shows that, when it comes to 15-year term life insurance, Transamerica offers the most affordable life insurance for older buyers. The average cost of this company's 15-year term life insurance policy is between $29.66 and $86.37 per month, depending on the coverage amount.
Company | $250,000 | $500,000 | $1,000,000 | |
|---|---|---|---|---|
1. | Transamerica | $29.66 | $52.03 | $86.37 |
2. | Mutual of Omaha | $35.13 | $62.18 | $117.73 |
3. | Nationwide | $35.20 | $59.82 | $105.34 |
4. | Mass Mutual | $36.06 | $63.69 | $114.22 |
5. | AAA | $45.25 | $77.73 | $129.91 |
6. | Progressive | $76.58 | $136.85 | $251.08 |
7. | Prudential | $87.74 | $67.83 | $133.85 |
Your life insurance policy will expire when you reach the end of the 15-year term. However, before it expires, you can either extend it, convert it into a permanent life policy, let it expire or buy a different one.
Your circumstances will determine whether you decide to extend, buy a new policy, or let your current one expire. If you have people in your household who are still dependent on your income or have debts to pay, it’s best to extend your current term policy or get a new one.
However, if your spouse or children no longer depend on your income and you have no other financial responsibilities, you can let the policy expire.
A 15-year term life insurance policy is a practical and affordable option for those with short- to mid-term financial responsibilities. It’s especially useful for parents, homeowners and anyone nearing retirement who wants to protect loved ones from debt or income loss. With competitive rates from top providers like Transamerica (starting at around $22.65 per month for a healthy 40-year-old) and flexible coverage options, a 15-year policy offers reliable peace of mind without long-term commitment.
By understanding the answers to some of the most frequently asked questions about this form of coverage, you can make an informed decision about purchasing 15-year term life insurance.
With a 15-year term life insurance policy, you pay monthly or annual premiums for the term to keep your policy active. If you pass away during this period, your family will receive a death benefit.
The cost of a 15-year term policy depends on various factors like your age, gender, health status, lifestyle and coverage amount.
Yes, a 15-year term life insurance policy can be extended after 15 years. You can also convert it to a whole life insurance policy or let your policy expire.
Why Trust MoneyGeek?
We analyzed 1,488 life insurance quotes alongside customer satisfaction, financial stability reports, product offerings and more to determine the best term life insurance companies.
MoneyGeek created a scoring system to compare life insurance companies across five categories and ranked them based on their scores. We chose to review these companies based on their broad national coverage and ability to provide an online quote.
MoneyGeek’s Scoring System
In our unique scoring system, companies can earn up to five points in each of five categories. We then use these category scores to calculate an overall MoneyGeek score out of 100. We applied the following weightings to score insurers:
Each company’s score incorporates:
Sample Customer Profile
MoneyGeek used a standard profile to obtain life insurance quotes:
Premiums are based on the standard profile unless otherwise noted.
We modified the profile by age, gender, height, weight, tobacco use, health rating and geographic location to collect a variety of quotes and determine the best life insurance company for several types of customers. We collected quotes for term life insurance with varying term lengths and coverage amounts as well.
We identified trends in the data set and used those patterns to calculate projections and extend the data beyond what was originally collected.
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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
