30-Year Term Life Insurance Policy: How Much Will a Policy Cost and Is It Right for You?

Buying a 30-year term life insurance policy will protect your family or loved ones. MoneyGeek analyzed 30-year term life insurance policy rates across the largest life insurance providers to help you find a policy that suits your needs and budget.

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Last Updated: 4/3/2022
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Death is a natural part of life, so it’s best to financially prepare for what happens after we pass away. There are several reasons you should have life insurance, but most people do it for peace of mind. It gives assurance that your loved ones will receive financial support after you’re gone.

It’s also a vital money management tool that may significantly affect your finances. There’s a lot of information about life insurance, which may become overwhelming.

That’s why MoneyGeek provides pertinent information to help you understand how a 30-year term life insurance policy works, including details on how much it costs and whether it’s appropriate for you, given your current financial situation.

Table of Contents

What Is a 30-Year Term Life Policy?

Life insurance comes in two main types — term and permanent.

Permanent life insurance covers you for your entire life but can be 10 times as expensive. Term life insurance provides temporary coverage but is significantly more affordable.

Temporary, however, does not necessarily mean a short period. You have the option to choose your policy length, whether it’s 10, 20 or 30 years. A 30-year term life insurance policy guarantees that your loved ones will receive your death benefit if you pass away while it’s still in effect.

For example, if you purchase a policy with a $500,000 face value at 35, you’ll be covered until you’re 65 as long as you don’t miss out on any premium payments.

Let’s say your health conditions deteriorate upon reaching 50, and, five years later, you pass away. Your beneficiaries will then have to file a claim and submit the necessary documents. Once approved, your insurer will pay out your death benefits as a tax-free lump sum. Your beneficiaries can then use the money as they see fit, such as payment for funeral costs, existing debts, tuition fees or regular household expenses.

A 30-year term life insurance policy is usually the longest option available to consumers. If you want lengthier coverage, you may as well go for a permanent life insurance policy.

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Ensure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs.

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Is a 30-Year Term Life Policy Right for You?

You have multiple options for policy length when purchasing term life insurance. The best way to figure out whether a 30-year term is appropriate for you is to examine your current financial situation. Depending on your profile, a 30-year term life insurance policy may or may not suit your needs.

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    You have young children.

    If you're in your mid-20s or early 30s and just started your family, a 30-year term life insurance policy gives you coverage until your children are adults. If your kids are in their teens, you may want to opt for a shorter length.

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    You have long-term debts.

    If you’ve taken out a 30-year loan and are worried about how your family will pay for it should anything happen to you, a 30-year life insurance term may fit your needs.

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    You want coverage while you’re working.

    If your main objective is for your family to have income replacement while you’re working but don’t think they’ll need ongoing financial support after you retire, you may find a 30-year term works in your favor.

You can get lasting, affordable coverage with this type of policy since a 30-year term life insurance plan costs less than a permanent policy. The drawback is that your premium will significantly increase if you want to renew it when it expires.

How Much Does a 30-Year Term Life Policy Costs?

Many different factors determine each policyholder’s 30-year term life insurance costs. Insurance providers use your age, coverage amount, smoking history and overall health to determine your premiums.

For example, here are the average rates for policies with various coverage amounts for a 30-year-old buyer:

  • $250,000: $30.57 per month
  • $500,000: $41.94 per month
  • $1,000,000: $78.83 per month

If you want a 30-year term policy with $500,000 coverage, your rate changes depending on your age:

  • 30-year-old: $41.94 per month
  • 40-year-old: $62.37 per month
  • 50-year-old: $155.94 per month

What Factors Impact Your 30-Year Policy Cost?

Insurers consider multiple factors when determining the costs of 30-year term life insurance. These include personal attributes such as age, coverage amount and health conditions.

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    Age

    The younger you are when you purchase your policy, the cheaper premiums tend to be. Insurers charge less for coverage since it’s more likely that you’ll outlive your policy.

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    Coverage Amount

    The coverage amount you choose determines how much insurers pay as a death benefit. The higher the amount, the more expensive premiums are.

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    Health Conditions

    Having poor health status or habits such as smoking can result in a shorter life expectancy, making insurers consider you riskier to insure. This higher risk typically results in higher premiums.

It isn’t unusual to see varying rates from different insurers for policies with similar coverages. Where you purchase your insurance is another consideration that impacts your total costs.

30-Year Policy Costs by Coverage Amount & Buyer Age

Even if they have the same policy length, rates are affected by your age and preferred coverage amount. The older you are, the higher your premiums become. Choosing a policy with a higher face value also results in more expensive rates.

The table below shows how rates increase for 30-, 40- and 50-year-old buyers across various coverage amounts.

30-Year Term Life Cost by Coverage & Age

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  • Policyholder Age
    $250,000
    $500,000
    $1,000,000
  • 30-Year-Old
    $30.57
    $41.94
    $78.83
  • 40-Year-Old
    $43.09
    $62.37
    $122.80
  • 50-Year-Old
    $96.85
    $155.94
    $296.79

Compare Life Insurance Rates

Ensure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs.

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30-Year Policy Costs if You Smoke or Are in Poor Health

Another factor that can significantly affect life insurance rates is your overall health condition. If you’re in poor health, have a history of smoking or have a high BMI, insurers will charge higher premiums because these factors all contribute to a shorter life expectancy.

30-Year/$500,000 Term Life Cost for Smokers or People in Poor Health

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  • Policyholder Age
    Smoker
    Poor Health
    High BMI
  • 30-Year-Old
    $148.23
    $68.60
    $62.22
  • 40-Year-Old
    $242.46
    $107.06
    $96.56
  • 50-Year-Old
    $588.31
    $246.12
    $217.64

Which Companies Have the Lowest 30-Year Term Rates?

Insurance providers offer varying rates, so you should shop around and compare life insurance quotes to find the best deal for your circumstances. MoneyGeek compared policies from various insurers to show you which companies offer the most affordable options.

Overall Cheapest 30-Year Term Life Insurance Providers

MoneyGeek’s study compared multiple life insurance quotes with various coverage amounts from different insurers nationwide. Regardless of your policy’s face value, you can typically purchase the cheapest life insurance from Transamerica. They offer the following rates for each coverage amount:

  • $250,000: $21.80 per month
  • $500,000: $33.43 per month
  • $1,000,000: $53.78 per month

Examine how rates change across insurers based on the coverage amount to help determine how much coverage you can afford.

30-Year Term Policy Monthly Premium by Company & Coverage

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  • Company
    $250,000
    $500,000
    $1,000,000
  • 1.
    Transamerica
    $21.80
    $33.43
    $53.78
  • 2.
    Mutual of Omaha
    $25.08
    $40.34
    $71.52
  • 3.
    Mass Mutual
    $25.74
    $39.72
    $65.44
  • 4.
    Nationwide
    $26.62
    $38.45
    $65.81
  • 5.
    AAA
    $29.74
    $38.67
    $80.31
  • 6.
    Progressive
    $37.13
    $59.56
    $158.07
  • 7.
    Prudential
    $57.09
    $58.85
    $115.16

Cheapest 30-Year Term Life Insurance Providers for Smokers

Life insurance for smokers cost much more than that of non-smokers. According to the CDC, smoking shortens your life expectancy by at least 10 years, making smokers riskier to insure.

The most affordable life insurance policies for smokers comes from Transamerica. The average premiums of their policies for different coverage amounts are as follows:

  • $250,000: $66.13 per month
  • $500,000: $117.00 per month
  • $1,000,000: $219.46 per month

Take a look at how rates vary from company to company to narrow down your options.

30-Year Term Policy Monthly Premium Cost by Company for Smokers

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  • Company
    $250,000
    $500,000
    $1,000,000
  • 1.
    Transamerica
    $66.13
    $117.00
    $219.46
  • 2.
    Mass Mutual
    $77.57
    $141.17
    $265.40
  • 3.
    Nationwide
    $85.77
    $275.79
    $533.09
  • 4.
    AAA
    $93.32
    $165.82
    $313.80
  • 5.
    Mutual of Omaha
    $93.74
    $155.16
    $300.92
  • 6.
    Progressive
    $94.47
    $172.77
    $385.96
  • 7.
    Prudential
    $115.51
    $172.18
    $341.80

Cheapest 30-Year Term Life Insurance if You're in Poor Health

MoneyGeek also compared quotes for policyholders who have poor health. Mutual of Omaha offers the lowest average rates across different coverage levels for this type of customer:

  • $250,000: $25.08 per month
  • $500,000: $40.34 per month
  • $1,000,000: $71.52 per month

Learning more about how much each company charges policyholders in poor health can help you find the best deal for life insurance.

30-Year Term Costs by Company for Those in Poor Health

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  • Company
    $250,000
    $500,000
    $1,000,000
  • 1.
    Mutual of Omaha
    $25.08
    $40.34
    $71.52
  • 2.
    Transamerica
    $34.15
    $55.96
    $95.92
  • 3.
    Mass Mutual
    $44.85
    $74.26
    $133.07
  • 4.
    Nationwide
    $47.69
    $79.85
    $145.66
  • 5.
    AAA
    $49.45
    $83.28
    $153.18
  • 6.
    Progressive
    $51.83
    $86.75
    $158.07
  • 7.
    Prudential
    $59.34
    $99.94
    $183.82

Cheapest 30-Year Term Life Insurance Providers for Older Buyers

The older you are, the more expensive premiums become because there is a lower likelihood that you’ll outlive your policy. Transamerica offers the cheapest average 30-year term life insurance rates for older buyers. Their rates for the different coverage amounts are:

  • $250,000: $69.76 per month
  • $500,000: $124.27 per month
  • $1,000,000: $229.64 per month

Take a look at the varying rates offered by different insurers and consider which ones suit your needs.

30-Year Term Cost by Company for a 50-Year-Old

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  • Company
    $250,000
    $500,000
    $1,000,000
  • 1.
    Transamerica
    $69.76
    $124.27
    $229.64
  • 2.
    Nationwide
    $80.60
    $146.40
    $278.75
  • 3.
    Mass Mutual
    $86.39
    $158.07
    $297.74
  • 4.
    Mutual of Omaha
    $87.58
    $156.61
    $303.83
  • 5.
    AAA
    $96.30
    $179.95
    $343.54
  • 6.
    Progressive
    $166.52
    $308.76
    $610.92
  • 7.
    Prudential
    $186.95
    $169.35
    $336.17

Compare Life Insurance Rates

Ensure you’re getting the best rate for your life insurance. Compare quotes from top providers to find the most affordable life insurance coverage for your needs.

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Insurance Rates

What Happens After the 30-Year Term?

If you are still alive at the end of the 30-year term, you can either extend your coverage or give it up. Before you decide which direction is most appropriate for you, there are several factors you need to consider.

If you choose to continue having life insurance, sometimes it's a better idea to purchase a new (and possibly shorter) policy. Choosing to renew your existing policy opens you up to significantly higher rates — at this point, you’ll be 30 years older, and your life expectancy is 30 years shorter.

However, if you're in worse health since the first time you bought life insurance, renewing may be a better option. In this situation, if you apply for a new policy, insurers may refuse to cover you or offer premiums even higher than renewal rates.

If you're financially independent and don't have children or a spouse who depends on you financially, giving up coverage may work out. Life insurance, although extremely helpful, isn't necessary for everyone at all times.

Frequently Asked Questions About 30-Year Term Life Insurance

A 30-year term life insurance policy is an excellent option for some buyer profiles but may not be for everyone. Understanding the answers to some frequently asked questions about this type of insurance can help you determine if it fits your needs.

About the Author


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Mark Fitzpatrick is a senior content manager with MoneyGeek specializing in insurance. Mark has years of experience analyzing the insurance market and creating original research and content. He graduated from Boston College with a Bachelor of Arts and Johns Hopkins University with a Master of Arts.


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