The purpose of this article is to provide you with information on life insurance term rates, including age, term, and policy options.
Aside from using your age and health status to determine your life insurance rate, an insurance company may also consider the weight you carry, whether you smoke or your family’s health history when calculating your premium.
A life insurance quote is not affected by your geographical location, unlike other types of insurance.
We at www.wapomudenwura.com were able to obtain average costs for a variety of policy types in order to figure out the average cost of life insurance.
Life insurance term rates: How much is it?
A typical life insurance policy in the United States costs $27 a month.
The calculations were based on an aggregated set of data collected by Quotacy for a 40-year-old who purchased a 20-year, $500,000 term life insurance policy, which happens to be the most common term length and amount.
However, the cost of life insurance can range greatly from applicant to applicant and policy to policy, meaning that rates can differ dramatically.
How life insurance term rates are determined
Life expectancy plays a major role in determining the premiums for life insurance.
On average, the more healthy and younger you are, the cheaper your insurance premiums are likely to be.
As a general rule, insurance companies categorize applicants into categories such as super preferred, preferred, and standard.
After that, the insurer will calculate your premiums according to what risk class you fall into.
Every insurer evaluates factors differently and weighs them accordingly.
This is why comparing quotes from different insurers makes sense.
When setting your rate, insurers consider the following factors:
- Your age.
The cost of life insurance is generally lower for younger people.
This is due to the simple fact that as you age, your life expectancy decreases, and thus, the likelihood that your insurer will have to pay out on your policy increases.
That is the very reason why it is advisable to buy life insurance as early as possible, since the longer you wait, the greater the chance that your premiums will go up simply based on your age.
- Your gender.
Women tend to live longer than men of the same age and health, so their insurance costs tend to be lower.
According to the latest figures from the Centers for Disease Control and Prevention, the average American woman lives 81.4 years and men 76.3 years.
- Your smoking status.
Insurers generally charge higher premiums for smokers because of their increased risk of developing respiratory diseases.
- Your health.
It includes your blood pressure and cholesterol levels, as well as any preexisting conditions you might have.
Your height and weight are also taken into consideration.
- Your family medical history.
There are instances where an insurer might ask you whether you have a family history of serious conditions like diabetes, heart disease, or cancer and how it affected your health.
- Your driving record.
If you have committed any serious offenses on your record (DUI, DWI, or serious traffic violations), you may be regarded as a high-risk applicant.
Your rates are also affected by the type of life insurance you select:
- The most economical form of life insurance is term life insurance since it lasts only for a set period of time and you are just getting insurance.
- The permanent life insurance program lasts a lifetime and offers a portion of the proceeds for investing that can be used in later life when the need arises.
The average cost of term life insurance by age
According to these annual life insurance rates, a policy for super preferred applicants includes a $500,000, 20-year term life insurance policy.
|
Age |
Average annual rate for men |
Average annual rate for women |
|---|---|---|
|
30 |
$225 |
$186 |
|
40 |
$336 |
$285 |
|
50 |
$839 |
$653 |
|
60 |
$2,364 |
$1,674 |
|
70 |
$9,298 |
$8,267 |
The average cost of whole life insurance by age
This is a rate for a super preferred applicant who gets a $500,000 policy.
|
Age |
Average annual rate for men |
Average annual rate for women |
|---|---|---|
|
30 |
$4,308 |
$3,802 |
|
40 |
$6,388 |
$5,467 |
|
50 |
$9,875 |
$8,347 |
|
60 |
$15,878 |
$13,487 |
|
70 |
$27,137 |
$23,678 |
Cost of life insurance without a medical exam
Term life insurance without a medical exam costs $500k annually for a 20-year policy that requires no exam.
|
Age and gender |
Super preferred |
Preferred |
Standard |
|---|---|---|---|
|
Woman, 30 |
$202 |
$257 |
$527 |
|
Woman, 40 |
$327 |
$482 |
$912 |
|
Woman, 50 |
$667 |
$837 |
$2,042 |
|
Man, 30 |
$297 |
$387 |
$712 |
|
Man, 40 |
$462 |
$652 |
$1,257 |
|
Man, 50 |
$882 |
$1,137 |
$2,682 |
Average cost of term life insurance by health
The rate shown here is based on a term life insurance policy for a value of $500,000 for a term of 20 years.
|
Age and gender |
Super preferred |
Preferred |
Standard |
|---|---|---|---|
|
Woman, 30 |
$186 |
$229 |
$348 |
|
Woman, 40 |
$285 |
$352 |
$514 |
|
Woman, 50 |
$653 |
$769 |
$1,181 |
|
Woman, 60 |
$1,674 |
$1,950 |
$3,067 |
|
Woman, 70 |
$8,267 |
$8,757 |
$10,693 |
|
Man, 30 |
$225 |
$292 |
$421 |
|
Man, 40 |
$336 |
$423 |
$660 |
|
Man, 50 |
$839 |
$985 |
$1,550 |
|
Man, 60 |
$2,364 |
$2,701 |
$4,327 |
|
Man, 70 |
$9,298 |
$11,056 |
$14,971 |
Average cost of life insurance by term length
The rates shown here are estimated on a $500,000 term life policy under the super preferred category for an applicant who is 40 years old.