Average Term Life Insurance Rates (2024) (2024)

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Rates are based on a 20-year term policy for non-smokers in the Preferred health classification, as published by Policygenius.

While these averages provide some level of insight into your expected term life insurance rates based on age, gender and the coverage amount you choose, your rates can vary significantly with your financial goals and your particular situation.

Gender, age and policy amount aren’t the only factors that affect your rates. Insurers process risk differently, leading to different premiums for similar policies. The best way to estimate your premiums is to compare term life insurance quotes from top life insurance companies.

Use the calculator below to get your customized term life insurance rate:

Life insurance premiums are based on your health risk for insurance providers. They also vary by each life insurance company’s underwriting guidelines.

Your age and health have the greatest impact on term life insurance policy premiums. But those are just two of many factors that play a role in the underwriting process. Insurers look at everything from your family health history to whether you smoke, have risky hobbies (skydiving) or work in a dangerous profession.

Here are the most important things life insurance companies consider when determining your level of risk and, therefore, your policy premiums:

• Age: Your age has a significant impact on your term life insurance rates. All other factors being equal, a 30-year-old will pay less than a 40-year-old for the same policy because the 30-year-old is more likely to outlive the policy’s term. Even if you don’t need a life insurance policy currently, it may be worthwhile to lock in lower premiums if you know you want a policy in the future.
• Medical history: Providers will want to know about your health to gauge your risk of dying before your policy’s term is up. They’ll consider things like chronic medical conditions and any issues with your respiratory system, cholesterol level and blood pressure. When you apply for a policy, you’ll need to answer questions about your health and possibly take a medical exam. Your answers will put you in a health classification that indicates your risk level and determines your premiums.
• Smoking status: Tobacco use, whether it’s smoking, vaping or chewing, has well-documented health consequences, and insurers put smokers in a higher risk category. If you use tobacco or cannabis, expect to pay twice as much as non-smokers for an equivalent policy. However, your rates can improve if you quit smoking. Most providers have a one-year waiting period to qualify for non-smoker rates after you quit.
• Gender: Women have a longer life expectancy than men. This makes women a lower risk to life insurers and that gets reflected in policy premiums.
• Family history: Hereditary conditions in your immediate family increase your personal risk as well. Insurers look for potential genetic issues like heart disease, cancer, diabetes and dependence on toxic substances, and they charge higher rates if your family’s health history isn’t clean.
• Occupation: Do you work in a high-rise office building or clean its windows strapped to nothing but a harness? Inherently dangerous occupations like car racing, firefighting, law enforcement and construction will result in higher premiums because of the increased risk of injury or death on a regular basis.
• Lifestyle and hobbies: Outside of work, your hobbies play a role in the underwriting process. Regularly participating in dangerous activities like scuba diving or rock climbing will likely increase your rates. Other aspects of your lifestyle that play a role include your driving record, criminal background history, foreign travel and any other factors that can affect your health or physical safety.
• Policy details: The more life insurance coverage you buy, the more expensive it is. This applies to aspects of your policy like the coverage amount, term length and whether you purchase additional coverage in the form of riders.

Now that we’ve outlined some of the factors that affect your life insurance rate, here are some things that do not affect premiums:

• Your race: By law, insurance companies cannot consider your race in determining life insurance rates. Race, religion and national origin are among “protected classes” for whom state and federal laws prohibit discrimination.
• Where you live: Your location within the U.S. will not affect your premiums. However, each state enacts its own rules for certain aspects of life insurance coverage such as refund policies, late payment grace periods and protections if your provider goes bankrupt.
• Your credit score: Your credit score will not directly affect your application, though major financial factors like bankruptcies and large credit balances could affect your score. In turn, the insurance company could see you as a higher-risk applicant and set higher monthly premiums or decline your application.

Term life insurance is a contract between the insured and an insurance provider that pays money to the insured’s named beneficiaries if the insured dies during the policy’s term. While it doesn’t offer lifelong coverage or provisions for investing cash value, it’s designed to be a low-cost option to cover specific financial obligations like a mortgage or college tuition.

There are multiple types of policies available. Some policies are non-renewable, meaning you’ll have to apply for a new policy with your new health status if you want to continue coverage. Other policies do allow for renewal under certain terms.

The amount of life insurance you can buy is limited only by your budget. But just because you can afford the cost of a $1 million policy doesn’t mean you need one. After you decide how much you are able or willing to spend, you should think about your financial needs after death to avoid buying too much life insurance.

Here are several questions the National Association of Insurance Commissioners recommends you answer when determining future financial obligations after death.

• How many financial dependents do I have?
• What percentage of my family’s income do I provide?
• How will my loved ones pay for funeral costs after I’m gone?
• Do I have significant debts to repay?
• Do I want to leave money to charity or family?
• If I have life insurance through my employer, is it enough to meet my financial obligations?

Methodology: Our System for Rating Life Insurance Companies

Our team researches and ranks life insurance companies using an in-depth scoring system that considers the factors most important to consumers like you. Our analysis includes a comprehensive review of each provider we feature based on available coverage, customizability, availability, customer service and company reputation. Here are the factors we take into consideration when rating life insurance providers:

• Brand trust (40%): Life insurance payouts can exceed $100,000 or more, which makes choosing a reputable and trustworthy insurance provider important. To assess brand trust, we use J.D. Power and Associates customer satisfaction surveys, AM Best credit rating scores and the National Association of Insurance Commissioners (NAIC) complaint index. The higher a company scores in each area, the more points it receives.
• Coverage (33%): The more policy options a life insurance company offers, the more opportunities you have to obtain the right coverage for your specific needs. For this reason, we give companies the most points for offering multiple types of life insurance, including various term, permanent and no-exam options.
• Availability and ease of use (19%): Since life insurance coverage options can be complex, we consider the ways a customer can reach a company — and how easy communication is. For this category, we research how many communication channels a company offers for general customer support, claims processing and the application process. Companies earn the most points for offering various ways to interact with an agent, both in-person and online.
• Riders (8%): Companies offering various life insurance riders or endorsem*nts allow policyholders to better customize their coverage. In this category, we determine how many riders a company offers and award the most points to providers with more than 10 options.