How much is life insurance?

The average monthly cost of life insurance is $26. This is based on Quotacy data for a 40-year-old purchasing a 20-year term life policy, the most common term length sold. However, life insurance rates can vary greatly between applicants, insurers, and policy types.

How life insurance rates are determined

Because life insurance premiums are primarily based on life expectancy, many factors influence rates, including gender, age, health, and smoking status.

In general, the healthier you are, the lower your insurance premiums. Applicants are typically classified by insurers using terms such as super preferred, preferred, and standard, with super preferred being the healthiest category. The premiums are then calculated by insurers based on your risk class.

Your rates are also affected by the type of life insurance you select:

• Term life insurance is the least expensive because it is only for a set number of years and provides only insurance.
• Permanent life insurance covers you for the rest of your life and includes an investment component that can be used later in life. Because of this additional cash component, permanent policies cost significantly more than term life policies.

Based on national averages, our life insurance cost calculator can help you estimate how much a term life policy might cost. Contact an independent financial advisor for permanent policies such as whole life insurance.

Your age can also have a significant impact on premium costs. Because you are more likely to die young as you get older, life insurers view you as a higher risk. That is why it is best to purchase life insurance as soon as possible; the longer you wait, the higher your rates will be based solely on age.

There are also price differences based on gender, though these are often a reflection of age. Women almost always pay less than men of the same age and health because they have longer life expectancies. Life expectancy in the United States is 81.2 years for women and 76.2 years for men, according to the Centers for Disease Control and Prevention.

It is always more expensive to put off purchasing a policy. Consider a 30-year-old who waits to purchase a policy:

• A 20-year, $500,000 term life insurance policy will cost about $100 more per year after the age of 40.
• Annual rates for a $500,000 term life policy with a 20-year term will more than triple by the age of 50.

Average cost of life insurance by age and gender

These annual life insurance rates are for super preferred applicants and are based on a $500,000, 20-year term life insurance policy.

Average cost of life insurance by policy type

For super preferred applicants, these annual life insurance rates are based on a $500,000 policy.

Average cost of life insurance by health

These annual life insurance rates are based on a $500,000 term life policy with a 20-year term.

Average cost of life insurance by term length

These annual life insurance rates are based on a $500,000 term life policy for a 40-year-old super preferred applicant.