Updated: June 4, 2025
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A $500,000 term life insurance policy offers substantial coverage to protect your family’s financial future, covering large expenses like mortgages, college tuition or income replacement.
Top providers like Transamerica, Protective and Mutual of Omaha offer best affordable rates, with some policies starting as low as $17/month depending on your profile.
Your coverage amount should be enough to pay your unpaid debts, burial costs and dependent's expenses. This equals about 10 to 12 times your annual salary.
The average cost of life insurance for a $500,000 term policy is $29 per month. This coverage offers more than funeral expense relief; it can also cover mortgage payments, educational costs and daily living expenses for years.
Although many insurers offer this policy, costs and benefits can vary. We broke down the different kinds of life insurance available in the market and the factors that affect their cost.
A 10-year, $500,000 policy costs about $20/month at age 30 and $65/month at age 50. Choosing a longer term raises the cost, with a 20-year policy for a 30-year-old averaging $28/month. Age is the biggest factor in pricing, so buying earlier means lower premiums.
Use the table to compare the cost of life insurance by age and see how monthly premiums differ across age groups from 30 to 70.
| 30 | $20 | $17 |
| 40 | $29 | $24 |
| 50 | $65 | $53 |
| 60 | $141 | $98 |
| 70 | $410 | $279 |
Life insurance rates rise substantially with age. A 60-year-old pays around $141/month for a $500,000, 10-year term, while a 70-year-old pays $410/month. That's because insurers see older applicants as higher risk due to shorter life expectancy and potential health issues, making it smart to buy earlier when possible.
A $500,000 term life insurance policy costs about $29/month for men and $24/month for women with a 10-year term. For a 20-year term, the average rises to $44/month for men and $35/month for women. Longer terms cost more because the insurer assumes more risk over time.
The chart below breaks down average monthly costs by term length and gender.
| 10-Year Term | $29 | $24 |
| 20-Year Term | $44 | $35 |
On average, a healthy non-smoker pays $29/month for a 10-year, $500,000 policy, while a smoker pays $68/month for the same coverage. Smokers pay much higher life insurance premiums due to the increased health risks and higher likelihood of early death.
| 10-Year Term | $68 | $53 |
| 20-Year Term | $102 | $77 |
Someone in poor health may pay $36/month for a 10-year term, compared with $29/month for a healthy individual. Health conditions such as diabetes, high cholesterol or a history of serious illness can lead to higher premiums, even if you don’t smoke.
| 10-Year Term | $36 | $28 |
| 20-Year Term | $53 | $41 |
Transamerica offers the lowest rates for 10-year, $500,000 term policies, averaging $15/month for women and $17/month for men. Allstate follows closely with $17 for women and $18 for men.
You can buy a $500,000 policy online or through an advisor. Use comparison tools to find the best life insurance rates and coverage.
| AAA | $25 | $23 |
| Allstate | $18 | $17 |
| Bestow | $48 | $37 |
| Fidelity | $32 | $29 |
| GEICO | $19 | $19 |
| Haven | $38 | $29 |
| Mutual of Omaha | $26 | $22 |
| Nationwide | $22 | $19 |
| Progressive | $52 | $29 |
| Protective | $20 | $17 |
| Prudential | $32 | $24 |
| State Farm | $31 | $29 |
| Transamerica | $17 | $15 |
An online life insurance policy can be a good option for people looking for no-hassle life insurance quotes. These policies allow you to compare and purchase coverage quickly, streamlining the buying process. Not all types of policies are available online.
For a 10-year, $500,000 policy, monthly costs range from $47 to $91 for men and $56 to $75 for women. For a 20-year term, rates increase to $76 to $105 for men and $59 to $81 for women. No medical exam life insurance offers fast, hassle-free coverage, but rates are higher.
The table below compares average monthly costs from insurers offering no exam policies.
| AAA | $72 | $59 |
| Fidelity | $91 | $75 |
| Haven | $47 | $75 |
| Mutual of Omaha | $73 | $56 |
Sometimes, insurance companies allow young and healthy applicants to forgo medical exams when applying for life insurance. They'll only ask a few health and lifestyle-related questions. You can get approval within minutes, depending on your profile.
Life insurance can be a valuable financial safety net without breaking the bank. Certain strategies can reduce your monthly life insurance cost and help you secure affordable protection.
Life insurance costs vary by age. Purchasing a policy when you're younger can lock in lower rates, as insurers see less risk in insuring younger, healthier people. Starting young can lead to considerable savings over the life of the policy.
If cost is a major concern, choosing a term life policy can be much more affordable than a permanent one. The average term life insurance cost is much lower than permanent life insurance policy costs because it does not accumulate cash value and only provides coverage for a specified period.
Regular exercise, a healthy diet and avoiding risky behaviors like smoking can improve your health classifications with insurers, reducing the average price of life insurance you pay each month.
Don't settle for the first quote you receive. Comparing prices for life insurance from various providers can help you find the best rate for the coverage you need. Use online tools and consult with independent agents to get a broad range of life insurance quotes.
Evaluate your actual life insurance needs periodically. You might be paying for more coverage than necessary. Reducing the death benefit or adjusting the terms of your policy can lower your monthly premium while still providing adequate protection.
Life insurance policy prices vary widely from person to person due to determining factors that shape the life insurance price you're offered. Here's a breakdown of the main elements that influence your life insurance rates:
The younger you are, the lower your monthly life insurance cost. This is because younger people are considered less risky to insure than older ones.
The applicant’s health is a key determinant in life insurance estimates. Healthier individuals get more favorable rates due to their lower risk profile.
Risky lifestyles, such as engaging in extreme sports or having a hazardous job, can elevate your life insurance cost per month. Insurers assess these risks and adjust the price of life insurance accordingly.
The duration of the policy affects the cost of $500,000 life insurance. Longer terms tend to have higher overall costs because they provide extended coverage.
The cost of permanent life insurance is usually higher than term life because it covers the insured for their entire life and often builds cash value.
Smokers will likely face higher average life insurance prices due to the health risks of tobacco use. This can substantially affect the monthly cost of life insurance.
Certain details impact the monthly cost of life insurance, but your rates shouldn't be influenced by:
Understanding the factors that do not affect life insurance rates can help guide your expectations and decisions when comparing life insurance policy amounts and payment options.
Your life insurance coverage amount should be about 10 to 12 times your annual salary. This amount of coverage gives your dependents financial protection in case of your untimely death. Your ideal amount will vary based on your financial and family situation.
If you're buying a $500,000 life insurance policy, consider any unpaid debt, burial costs and your family's everyday expenses. Consider future costs like your children's college tuition.
$500,000 is the most popular coverage amount, but you can buy more or less coverage depending on your needs and circumstances. Use MoneyGeek's free calculator below to estimate how much life insurance coverage is adequate for your situation.
Your life insurance policy's coverage amount is the amount paid out to your beneficiary or beneficiaries if you die. You have several options for how your death benefit is disbursed. These include lump-sum payments, installments and retained asset accounts.
Insurers offer various coverage amount options, and a $500,000 life insurance policy is just one of them. Your financial and family situation will determine the amount of coverage you need. If you're the breadwinner in your family or carry a lot of debt, buying life insurance will help ensure your dependents won't face financial hardship if you pass away.
Understanding key life insurance terms can help you navigate your options and ensure you select the right coverage for your needs. Here are some important terms to know:
People buy permanent life insurance to provide lifetime financial protection for their loved ones and supplement their retirement assets. Whole life, universal life and guaranteed issue are the most common types of permanent life insurance:
Permanent life insurance policies don't expire, but they can cost up to 20 times more than term life insurance policies. This is because these policies are guaranteed to pay your beneficiaries if you keep up with premiums.
A $500,000 life insurance policy offers substantial coverage at an affordable price for many buyers. For example, a healthy 40-year-old might pay $29/month for a 10-year term or $44/month for a 20-year term. Your rate will vary based on age, health, and lifestyle factors. Understanding what affects your cost helps you choose the right term length and provider for your financial needs.
We answered common questions about $500,000 life insurance plans and life insurance pricing to help you decide if these policies are right for you.
Life insurance works by paying your beneficiaries $500,000 when you die, as long as you've kept up with premium payments. Your beneficiaries can receive this money as a lump sum, in installments or through a retained asset account that earns interest while they decide how to use the funds.
Whether a coverage amount is enough for you depends on your finances and family situation. Calculate your mortgage balance, credit card debt, funeral costs (typically $7,000 to $12,000) and how much your family would need for ongoing expenses. The common rule suggests 10 to 12 times your annual income, but someone earning $50,000 with minimal debt might need less than someone with a $300,000 mortgage and young children.
Yes, you can get $500,000 in life insurance coverage without undergoing a medical exam by purchasing guaranteed issue, simplified issue or instant life insurance. However, such policies can be more expensive or have limited availability than traditional life insurance.
A healthy 30-year-old nonsmoker pays about $40 per month for a 20-year, $500,000 term policy. The same person would pay roughly $400 to $600 monthly for whole life insurance with identical coverage because it includes a savings component and guaranteed payout.
A healthy 60-year-old man pays $140 to $285 monthly for a $500,000 term policy, depending on the term length and health rating. A 10-year term costs less than a 20-year term, but many insurers stop offering 20+ year terms at this age. Whole life insurance becomes prohibitively expensive, often costing $2,000+ monthly.
The amount of life insurance you need depends on your financial obligations, debts and family's future needs. Start with your annual income and multiply by 10, then adjust based on your situation.
Add extra coverage if you have young children (for college costs), a large mortgage or significant debt. Subtract coverage if you have substantial savings or your spouse earns a high income. For example, someone earning $75,000 with $200,000 in mortgage debt might need $950,000 in coverage.
A healthy 65-year-old man pays $200 to $400 monthly for $500,000 in 10-year term coverage, but many insurers limit term options at this age. Permanent life insurance becomes the primary option, with premiums ranging from $1,500 to $3,000 monthly for the same coverage amount.
Men pay about 18% to 23% more than women because of shorter life expectancy. A 40-year-old man pays roughly $29 monthly for $500,000 in 10-year term coverage, while a woman the same age pays about $24. The gap widens with age: by 60, men might pay 20% to 25% more than women for identical coverage.
Term life insurance offers the lowest premiums because it provides pure coverage without cash value. Based on our analysis of major insurers, the cheapest options typically cost $15 to $25 monthly for $500,000 in coverage for healthy 30-year-olds. Your actual rate depends on age, health, term length and insurer.
Term life insurance is surprisingly affordable when you're young and healthy, often less than your monthly streaming subscriptions. A healthy 25-year-old might pay $15 monthly for $500,000 in coverage. However, premiums increase significantly with age and health issues. Permanent life insurance costs 10 to 20 times more than term coverage.
Why Trust MoneyGeek? We analyzed 1,488 life insurance quotes to determine the average cost of a $500,000 life insurance policy for a variety of buyer profiles.
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.
