Personal Finance Insurance Life Insurance
Written by Liz Knueven and Alani Asis; edited by Paul Kim; reviewed by Evelyn He
- There's no one-size-fits-all answer
- Key factors affecting life insurance cost
- Getting an idea of your life insurance cost
- FAQs
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- The average cost of a life insurance policy ranges from $40 to $55 monthly.
- The true cost varies by the type of insurance, coverage amount, and personal factors.
- Permanent insurance tends to be more expensive than term life insurance and is used differently.
Life insurance is surprisingly affordable, but premiums vary based on the specific type of life insurance. Policygenius reports the average annual cost of a $500,000 term life policy for 30-year-old males and females is about $300. The same whole life insurance policy costs approximately $5,409 per year. Other factors, like your age and health, can also influence cost.
There's no one-size-fits-all answer
You can explore various options with term and whole life insurance, guaranteed-to-pay-out whole life policies vs. plans with an expiration date, and more. Life insurance isn't one-size-fits-all.
While an average amount can give you an idea of what you'll pay, many factors go into life insurance costs, like the type of coverage, age, where you live, and other personal factors. multiple factors.
Key factors affecting life insurance cost
More than just age, sex, and type of insurance can influence your rates. Your lifestyle and health history could also determine the price you pay. Here are a few things that could make your coverage more expensive than someone your age.
Age
The most noticeable difference is in the older ages of the sample premiums — after age 40, premiums go up significantly. The sooner you get your coverage, the less you could pay each month.
Gender
Gender plays a significant role in your life insurance rate. For the same insurance policy, a female and a male will pay different monthly coverage amounts. Males will generally pay more each year.
Amount of coverage
The more coverage you require, the higher your insurance will be. Policygenius data illustrates how term life insurance costs compare based on age, gender, and coverage amount.
Age | Gender | $250,000 Coverage | $500,000 Coverage | $1 million Coverage |
20 | Female | $15.01 | $22.65 | $33.63 |
Male | $19.18 | $30.20 | $47.51 | |
30 | Female | $15.17 | $22.98 | $36.90 |
Male | $18.19 | $29.32 | $48.89 | |
40 | Female | $21.66 | $35.27 | $60.65 |
Male | $25.39 | $42.94 | $75.24 | |
50 | Female | $43.92 | $78.29 | $139.50 |
Male | $56.69 | $102.50 | $188.29 | |
60 | Female | $107.83 | $194.16 | $354.51 |
Male | $149.38 | $268.04 | $499.98 |
Source: Policygenius
These life insurance quotes are based on a 20-year term life insurance policy for people with few health conditions who don't smoke.
Health
Life insurance companies can check your health history and medication history in two ways: a medical records database and your medical exam (although it's possible to get life insurance without a medical exam). Like health insurance, pre-existing conditions could also impact the rate you pay.
Type of insurance
There are two main types of life insurance: permanent life insurance (whole, universal, and variable life insurance) and term life insurance. Each type grows and pays death benefits differently, and each insurance cost has very different associated costs.
Take a look at the average cost of whole life insurance based on age, gender, and coverage amount.
Age | Gender | $250,000 coverage | $500,000 coverage | $1,000,000 coverage |
20 | Female | $147.50 | $290.00 | $558.50 |
Male | $175.50 | $347.00 | $670.50 | |
30 | Female | $209.50 | $414.50 | $814.00 |
Male | $245.50 | $487.00 | $954.50 | |
40 | Female | $305.00 | $605.50 | $1,195.00 |
Male | $371.00 | $737.00 | $1,422.00 | |
50 | Female | $480.50 | $957.00 | $1,899.00 |
Male | $569.50 | $1,134.50 | $2,222.00 | |
60 | Female | $800.50 | $1,597.00 | $3,179.50 |
Male | $957.00 | $1,909.50 | $3,769.00 |
Source: Policygenius
Lifestyle
Avid skydivers, scuba divers, or travelers could find their insurance rates higher than others. It's not uncommon for insurers to ask about your history with these activities, travel history, and future plans. A bad driving record could also add to the cost of life insurance.
Life insurance for smokers is also more expensive. Insurance company Protective Life research shows that life insurance is 100 to 300 times more expensive for smokers.
See the table for the average rates for smokers based on age, gender, and coverage amount:
Term life insurance for smokers
Age | Gender | $250,000 Coverage | $500,000 Coverage | $1 million Coverage |
20 | Female | $35.71 | $60.59 | $101.32 |
Male | $44.50 | $76.43 | $132.24 | |
30 | Female | $38.52 | $65.75 | $117.20 |
Male | $46.90 | $80.95 | $143.89 | |
40 | Female | $62.74 | $113.40 | $207.38 |
Male | $78.26 | $145.39 | $266.49 | |
50 | Female | $137.94 | $257.05 | $465.89 |
Male | $188.09 | $351.50 | $660.83 | |
60 | Female | $320.17 | $617.51 | $1,123.64 |
Male | $461.29 | $887.93 | $1,642.70 |
Source: Policygenius
These life insurance quotes are based on a 20-year term life insurance policy for people with no health conditions but smoke.
Whole life insurance for smokers
Age | Gender | $250,000 coverage | $500,000 coverage | $1,000,000 coverage |
20 | Female | $177.00 | $348.00 | $670.20 |
Male | $210.60 | $416.40 | $804.60 | |
30 | Female | $251.40 | $497.40 | $976.80 |
Male | $294.60 | $584.40 | $1,145.40 | |
40 | Female | $366.00 | $726.60 | $1,434.00 |
Male | $445.20 | $884.40 | $1,706.40 | |
50 | Female | $576.60 | $1,148.40 | $2,278.80 |
Male | $683.40 | $1,361.40 | $2,666.40 | |
60 | Female | $960.60 | $1,916.40 | $3,815.40 |
Male | $1,148.40 | $2,291.40 | $4,522.80 |
Source: Policygenius
Getting an idea of your life insurance cost
Use an online life insurance cost calculators
Online calculators help you estimate how much coverage you need. Calculating this coverage includes your debt, income, mortgage, children's education expenses, and final expenses.
Work with an insurance broker
Like online calculators, insurance brokers help you determine your coverage needs and offer personalized advice. They can also assist with finding the right policy that fits your budget.
Compare quotes from multiple insurers
Insurance companies weigh risk factors differently, so you'll see different rates with different companies. Comparing quotes from various companies will help you find the best price for the coverage you need.
Cost of life insurance FAQs
Can I get affordable life insurance?
One way to get affordable life insurance options is by choosing a term life insurance policy, which gives you significant coverage for an affordable price. Maintaining a healthy lifestyle is also key to lowering your life insurance premiums. Keeping your weight under control, avoiding smoking, and managing any medical conditions you have are among the biggest ways to do so.
Do health conditions always mean higher premiums?
Health conditions don't always mean higher premiums. Some insurers offer lower rates than their competitors for specific conditions. Shopping around can ensure you get the best rates for your risk profile.
Do my premiums increase as I age?
Whether your premiums increase over the course of a policy depends on your policy. Generally, premiums are fixed, so they won't go up throughout your policy's lifetime. As a result, buying life insurance while young and healthy can help you secure cheaper rates.
Where can I find the best life insurance rates?
You can find the best life insurance rates using comparison websites. Many of these sites generate real live quotes and side-by-side comparisons in minutes — a quick and easy way to find the best rates and coverage. Speaking to brokers requires a bit more effort. You
Can my life insurance rate change after I'm approved?
Life insurance rates can change after approval due to multiple reasons. You may see a rate increase if there's a change in your policy (e.g., you convert your policy or include riders). Rates rarely decrease unless there is a significant change in your health and lifestyle (e.g., quitting smoking).
Personal Finance Reporter
Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.
Alani Asis is a personal finance expert with experience covering insurance, retirement, and credit at both Business Insider and LendingTree. Her work has been published in AARP, CNN Underscored, Forbes, Fortune, PolicyGenius, and U.S. News & World Report.ExperienceAlani is a former insurance fellow on the Personal Finance Insider team. She’s reviewed life insurance and pet insurance companies and has written numerous explainers on travel insurance, credit, debt, and home insurance.She is passionate about demystifying the complexities of insurance and other personal finance topics so that readers have the information they need to make the best money decisions.ExpertiseAlani’s areas of personal finance expertise include:
- Car insurance
- Life insurance
- Home insurance
- Travel insurance
- Pet insurance
- Credit
- Credit cards
- Retirement planning
EducationAlani is a graduate of the University of Hawaii at Manoa, where she earned a degree in political science and history.
Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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