Updated: August 12, 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 Protective, Lincoln Financial and AAA offer the most affordable rates. Some policies start as low as $23 per month, depending on your profile.
Your coverage amount should be enough to pay your unpaid debts, burial costs and your dependents' expenses. This equals about 10 to 12 times your annual salary.
The average cost of life insurance for a $500,000 term policy is $33 per month. This coverage offers more than funeral expense relief; it can also cover mortgage payments, educational costs and daily living expenses for years.
Many insurers offer this coverage, but costs and benefits vary. Below, we break down the different kinds of life insurance available and the factors that affect their price.
A $500,000 term life insurance policy costs about $33 per month or $382 per year for men and $28 per month or $336 per year for women with a 10-year term. For a 20-year term, the average rises to $53 per month ($606 per year) for men and $44 per month ($528 per year) for women. Longer terms cost more because insurers assume more risk over time.
The chart below breaks down average monthly costs by term length and gender.
| 10 years | $33 | $382 |
| 15 years | $43 | $494 |
| 20 years | $53 | $606 |
| 25 years | $70 | $840 |
| 30 years | $87 | $1,000 |
| 35 years | $101 | $1,216 |
| 40 years | $148 | $1,777 |
*Rates are based on averages for 40-year-old nonsmokers with average health.
Age is the biggest factor in pricing, so buying earlier means lower premiums. A 10-year, $500,000 policy costs about $22 per month at age 30 and $79 per month at age 50 for men. The same policy costs an average of $18 per month for a 30-year-old woman and $59 per month for a 50-year-old woman.
Use the table to compare the cost of life insurance by age and see how monthly premiums differ across ages from 18 to 70.
| 10 years | $21 | $253 |
| 15 years | $27 | $321 |
| 20 years | $33 | $395 |
| 25 years | $49 | $594 |
| 30 years | $54 | $653 |
| 35 years | $74 | $876 |
Life insurance rates rise substantially with age. A 60-year-old man pays around $220 per month for a $500,000, 10-year term, while a 70-year-old pays $647 per month. Insurers see older applicants as higher risk due to shorter life expectancy and potential health issues, so buying coverage when you're younger saves money.
A healthy 40-year-old non-smoker pays $33 per month for a 10-year $500,000 policy. A smoker pays $105 per month for the same coverage.
Smokers pay much higher life insurance premiums due to the increased health risks and higher likelihood of early death. Compare average rates for smokers of different ages below.
| 10 years | $105 | $1,267 |
| 15 years | $130 | $1,567 |
| 20 years | $160 | $1,924 |
| 25 years | $237 | $2,849 |
| 30 years | $267 | $3,202 |
| 35 years | $333 | $3,992 |
| 40 years | $495 | $5,966 |
Health conditions such as diabetes, high cholesterol or a history of serious illness can lead to higher premiums, even if you don’t smoke.
A 40-year-old man in poor health pays approximately $43 per month for a 10-year policy, while a 40-year-old woman spends around $36 monthly for the same coverage. These rates are slightly higher than the average costs for healthy 40-year-olds: $33 per month for males and $28 per month for females.
The table below highlights average rates for people with poor health of different ages.
| 10 years | $36 | $436 |
| 15 years | $45 | $540 |
| 20 years | $56 | $678 |
| 25 years | $74 | $885 |
| 30 years | $94 | $1,125 |
| 35 years | $104 | $1,248 |
| 40 years | $165 | $1,989 |
Protective offers the lowest rates for 10-year, $500,000 term policies, averaging $23 per month. Lincoln Financial follows closely with $24. Rates vary by term length.
You can buy a $500,000 policy online or through an advisor. Use comparison tools to find the best life insurance rates and coverage.
| Protective Insurance | $23 | $277 |
| Lincoln Financial | $24 | $285 |
| AAA | $27 | $326 |
| Gerber Life (Fabric) | $28 | $337 |
| Fidelity Life | $29 | $345 |
| North American | $29 | $349 |
| Midland National | $29 | $349 |
| TransAmerica | $30 | $359 |
| Principal National | $31 | $372 |
| CoreBridge | $32 | $381 |
| Securian | $32 | $383 |
| Guardian Life | $33 | $396 |
| Legal&General | $33 | $397 |
| Pacific Life | $33 | $397 |
| Cincinnati Life | $33 | $399 |
| SBLI | $34 | $410 |
| Nationwide | $34 | $411 |
| Columbus Life | $36 | $429 |
| Mutual of Omaha | $37 | $444 |
| Equitable Life | $37 | $445 |
| Assurity | $37 | $446 |
| Foresters Financial | $38 | $454 |
| Life Insurance Co of The South West | $38 | $456 |
| National Life Group | $38 | $456 |
| John Hancock | $41 | $495 |
| Prudential | $42 | $506 |
*Rates are based on averages for 40-year-old male nonsmokers with average health.
Online life insurance can be a good option for people looking for no-hassle quotes. You can compare and purchase coverage quickly, simplifying the buying process. Not all policy types are available online.
No-medical-exam life insurance offers fast, hassle-free coverage, but availability may be limited. Rates are often higher than traditional policies.
The table below compares average monthly costs from insurers offering no-exam policies.
| Lincoln Financial | $24 | $285 |
| AAA | $27 | $326 |
| Gerber Life (Fabric) | $28 | $337 |
| Fidelity Life | $29 | $345 |
| Pacific Life | $33 | $397 |
| Nationwide | $34 | $411 |
| Assurity | $37 | $446 |
*Rates are based on averages for 40-year-old male nonsmokers with average health.
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 rates vary widely based on factors that influence your premium. The main elements that affect your rates:
The younger you are, the lower your premium. Younger people are less risky to insure.
Your health directly impacts your rates. Healthier individuals get better rates due to their lower risk profile.
Risky lifestyles, such as extreme sports or hazardous jobs, can increase your premiums. Insurers assess these risks and price accordingly.
Longer terms cost more because they provide extended coverage.
Permanent life insurance costs more than term life because it covers you for life and often builds cash value.
Smokers pay higher premiums due to tobacco-related health risks. Smoking significantly increases your monthly cost.
Your rates shouldn't be influenced by:
Knowing what doesn't affect rates helps you focus on factors that matter when shopping for coverage.
Life insurance can be a valuable financial safety net without breaking the bank. These strategies can reduce your monthly premiums:
Life insurance costs vary by age. Purchasing a policy when you're younger locks in lower rates, as insurers see less risk in insuring younger, healthier people. Starting young leads to considerable savings over the policy's life.
Term life policies cost much less than permanent ones. Term life insurance costs less because it doesn't 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 rating, lowering your monthly premiums.
Don't settle for the first quote you receive. Compare rates from various providers to find the best deal. Use online tools and consult with independent agents to get multiple quotes.
Review your needs periodically. You might be paying for more coverage than necessary. Reducing the death benefit or adjusting policy terms can lower your monthly premium while maintaining adequate protection.
Use our life insurance calculator to see how your age, health, and coverage term affect your premium. Our calculator provides an instant estimate tailored to your profile.
We’ll give you a suggested amount of cover to buy in just 3 easy steps. — it's free, no personal information required, no spam.
Rates updated:
Aug 23, 2025
Your life insurance coverage amount should be about 10 to 12 times your annual salary. This amount provides your dependents with financial protection if you die. Your ideal amount will vary based on your financial and family situation.
When considering a $500,000 life insurance policy, factor in unpaid debt, burial costs, and your family's everyday expenses. Also 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.
Comparing average costs for different coverage amounts helps you see how costs scale with coverage and which amount fits your situation best. For example, $250,000 life insurance policies may work for single individuals with minimal debt, while $500,000 can cover a mortgage and income replacement for a family of four. Higher amounts, like $1 million life insurance, are better suited for high earners, multiple dependents, or long-term financial goals such as college funding.
The table below highlights the average monthly premiums by coverage size, making it easier to evaluate how a $500,000 policy compares to other common amounts.
| $100,000 | $11 | $131 |
| $150,000 | $16 | $189 |
| $200,000 | $19 | $223 |
| $250,000 | $19 | $229 |
| $300,000 | $22 | $256 |
| $350,000 | $22 | $267 |
| $400,000 | $28 | $325 |
| $450,000 | $28 | $332 |
| $500,000 | $33 | $382 |
| $550,000 | $29 | $356 |
| $600,000 | $40 | $460 |
| $650,000 | $34 | $415 |
| $700,000 | $43 | $307 |
| $750,000 | $48 | $581 |
| $800,000 | $52 | $599 |
| $850,000 | $44 | $534 |
| $900,000 | $58 | $666 |
| $950,000 | $49 | $594 |
| $1,000,000 | $62 | $714 |
| $1,250,000 | $64 | $771 |
| $1,500,000 | $92 | $1,051 |
| $2,000,000 | $121 | $1,383 |
| $2,500,000 | $164 | $936 |
| $3,000,000 | $180 | $2,060 |
*Rates are based on averages for 40-year-old male nonsmokers with average health.
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. These policies guarantee a payout to your beneficiaries as long as you pay premiums.
A $500,000 life insurance policy offers substantial coverage at an affordable price for many buyers. For example, a healthy 40-year-old man pays an average of $33 per month for a 10-year term, while a healthy 40-year-old woman pays around $28 per month.
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 pays 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, these policies can be more expensive or have limited availability compared to traditional life insurance.
A healthy 40-year-old nonsmoker pays about $28 to $33 per month for a 10-year, $500,000 term policy, depending on gender. The same person would pay more for whole life insurance with identical coverage because it includes a savings component and guaranteed payout.
A healthy 60-year-old man pays $220 to $334 monthly for a $500,000 term policy, depending on the term length. 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 your 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 $401 to $551 monthly for $500,000 coverage, depending on term length. 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 often pay more than women because of shorter life expectancy. For instance, a 40-year-old man pays roughly $33 monthly for $500,000 in 10-year term coverage, while a woman the same age pays about $28. That's an 18% difference. The gap widens with age: by 60, men might pay around 42% 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 $23 to $42 monthly for $500,000 in coverage for healthy 40-year-olds. Your actual rate depends on age, health, term length, and insurer.
Life insurance can be affordable, especially if you choose term coverage and apply when you're young and healthy. Costs rise with age, health conditions, or if you select permanent life insurance, which is 10 to 20 times more expensive than term coverage.
Finding the best $500,000 life insurance policy requires understanding cost, financial stability and coverage ease. We gathered real quotes, evaluated insurers based on these factors and combined the results into a clear, data-driven score.
MoneyGeek’s scoring model
Each company can earn up to five points in each of these five categories. We convert those to an overall MoneyGeek score out of 100 using the weightings below.
What feeds those scores (and why it matters to you)
Who we priced (our base profile)
Quotes are anchored to a 40-year-old, male, non-smoker, 5'9", 160 pounds, with an average health rating. Premiums use this standard profile unless noted. To reflect real shoppers, we also varied age, gender, height, weight, tobacco use, health class and location, and pulled quotes for different term lengths and coverage amounts.
How we extended the data
After collecting quotes, we identified trends and projected costs to fill reasonable gaps (for example, additional ages or term lengths) using the same patterns we observed in the dataset. This lets readers see how pricing moves when they change factors like term length or health class without us creating new sources or assumptions.
What this means for you
This framework balances price with claim-paying strength, customer experience, and product flexibility. These are the factors that matter most when you’re deciding if $500,000 in coverage fits your budget and your family’s financial protection needs.
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.
