Term life insurance costs an average of $207 a year, or $17 a month for a 30-year-old woman for a 20-year, $500,000 term life insurance policy, based on the companies in our analysis. For a male buyer the same age, the same policy costs an average of $251 a year, or $21 a month.
A whole life insurance policy costs an average of $3,945 a year, or $329 a month for a 30-year-old woman with $500,000 coverage. For a male buyer the same age, the same policy costs an average of $4,375 a year or $365 a month.
Current regulations in some states and for some products permit insurers to ‘quote’ a low premium while charging high costs—without disclosing that you may need to pay additional premiums later in order to avoid a lapse.
– Barry D. Flagg, founder of Veralytic
The cost of life insurance varies by the policy type, company and your age, health, gender, amount of coverage and other factors.
Life Insurance Cost for Females
Here are average monthly costs for each top-ranking life insurance company, for a 20-year $500,000 term life insurance policy for a healthy female.
| Company | Buyer age 30 cost per month | Buyer age 40 cost per month | Buyer age 50 cost per month |
|---|---|---|---|
Pacific Life | $16 | $24 | $54 |
Protective | $16 | $24 | $53 |
Corebridge Financial | $16 | $24 | $54 |
Penn Mutual | $16 | $25 | $54 |
Transamerica | $16 | $24 | $54 |
Symetra | $16 | $24 | $53 |
Lincoln Financial | $16 | $25 | $58 |
Midland National | $17 | $25 | $55 |
MassMutual | $15 | $23 | $61 |
Nationwide | $19 | $26 | $55 |
Life Insurance Cost for Males
Here are average monthly costs for each top-ranking life insurance company, for a 20-year $500,000 term life insurance policy for a healthy male.
| Company | Buyer age 30 cost per month | Buyer age 40 cost per month | Buyer age 50 cost per month |
|---|---|---|---|
Pacific Life | $18 | $28 | $69 |
Protective | $18 | $28 | $68 |
Corebridge Financial | $19 | $28 | $69 |
Penn Mutual | $19 | $28 | $69 |
Transamerica | $19 | $28 | $70 |
Symetra | $18 | $28 | $68 |
Lincoln Financial | $19 | $30 | $74 |
Midland National | $20 | $29 | $83 |
MassMutual | $27 | $20 | $80 |
Nationwide | $22 | $30 | $74 |
EXPERT TIPS
How Do I Choose the Best Life Insurance?
Ashlee Valentine
Insurance Editor
Amy Danise
Insurance Managing Editor
Les Masterson
Insurance Editor
Michelle Megna
Insurance Lead Editor
Establish your financial goals
Once you know your goals, then find the policy that’s right for you. An experienced life insurance agent can help you find the right company and policy. Insurance companies vary in their underwriting criteria and pricing, so while one company can be good for one person, another company might be better for you.
Tony Steuer
Advisory Board Member
Check financial strength ratings
I always make sure the companies I’m considering have an A rating or higher for financial strength. These ratings are available from agencies like AM Best and Standard & Poor’s and help me identify companies that will be able to pay claims many years in the future. That’s why all the companies in our analysis are rated A or higher.
Ashlee Valentine
Insurance Editor
Work with experienced professionals
I’ve found it’s essential to work with an experienced life insurance agent or financial advisor who knows which insurers are most likely to give the best price based on age and health. You want to know if you have a good chance of getting a decent quote from an insurer before you apply. A good life insurance agent or financial advisor can also anonymously shop around for you, so you don’t get declined—which can affect your ability to buy life insurance later from someone else.
Amy Danise
Insurance Managing Editor
Look for a term life conversion feature
If I’m looking for the best term life insurance, I’m going to shop mainly on price, but I’m also going to make sure the policy will let me convert to a cash value policy later on. This term life conversion option is a good way to hedge your bets. You may find you want a permanent life policy many years later, when buying a new policy could be cost-prohibitive.
Les Masterson
Insurance Editor
Examine internal policy charges
If you’re buying a cash value policy like universal life insurance I strongly recommend working with a financial advisor who can explain the costs within the policy, like the internal charges. Don’t shop on the monthly price alone if you’re buying a cash value policy. The true cost of the policy can be hidden in the details of the charges.
Michelle Megna
Insurance Lead Editor
