What is the average cost of life insurance? This is a question that many people ask, but it can be hard to find an answer. Life insurance rates are calculated using your age and health status, but they may also consider your employment, weight, smoking status, and family medical history. At The Annuity Expert, we’ve compiled rates for various policy types and customer profiles to calculate the average cost of life insurance. This guide will discuss the average life insurance cost and the factors affecting your price.
- Life Insurance Average Cost Is…
- Premium For Life Insurance Calculator
- Average term life insurance rates by age and gender
- Average whole life insurance rates by age and gender
- Average burial insurance rates by age and gender
- Overpriced Life Insurance
- How do I get the best life insurance rate?
- Conclusion
- Need Help Getting Life Insurance Coverage?
- Frequently Asked Questions
Life Insurance Average Cost Is…
The average cost of life insurance for a 20-year-old is $250 per year. This is for a policy with a death benefit of $500,000. For a 30-year-old, the average cost goes up to $400 per year. And for a 40-year-old, the average cost is $600 per year. Again, these rates are for healthy individuals with no significant health problems.
Of course, the older you are, the more expensive life insurance becomes. This is because your risk of death increases as you age. For example, a 55-year-old will pay an average of $950 per year for a policy with a death benefit of $500,000. And a 65-year-old will pay an average of $1700 per year for the same coverage.
You can do a few things to get cheaper life insurance rates, regardless of your age. One is to quit smoking if you currently smoke. This can save you up to 50% on your premiums. Another is to get in shape and maintain a healthy weight. This can also save you money on your premiums.
Premium For Life Insurance Calculator
Average term life insurance rates by age and gender
We began by comparing the average term life insurance premium changes for different age groups. Life insurance premiums are determined using an individual’s age. Rates will continue to rise as you age since your life expectancy decreases.
The term life insurance quotes below are for a 20-year term life insurance policy with a death benefit of $250,000, $500,000, $750,000, and $1,000,000.
| Age | Gender | $250k | $500k | $750k | $1,000,000 |
|---|---|---|---|---|---|
| 25 | Female | $10.95 | $16.37 | $21.79 | $22.98 |
| Male | $12.30 | $19.08 | $25.86 | $30.54 | |
| 35 | Female | $12.45 | $18.20 | $24.54 | $30.53 |
| Male | $13.80 | $21.64 | $29.70 | $33.93 | |
| 45 | Female | $21.24 | $36.95 | $52.67 | $67.85 |
| Male | $26.19 | $46.67 | $67.24 | $87.81 | |
| 55 | Female | $45.37 | $84.36 | $123.78 | $158.80 |
| Male | $61.24 | $114.71 | $169.30 | $221.55 |
Our findings show that the increase in monthly premiums as you age is much smaller if you are young than older.
Average whole life insurance rates by age and gender
We began by comparing the average whole life insurance premium changes for different age groups. Life insurance premiums are determined using an individual’s age. Rates will continue to rise as you age since your life expectancy decreases.
The whole life insurance quotes below are for a life insurance policy with a death benefit of $250,000, $500,000, $750,000, and $1,000,000.
| Age | Gender | $250k | $500k | $750k | $1,000,000 |
|---|---|---|---|---|---|
| 25 | Female | $108.50 | $211.75 | $315.00 | $418.25 |
| Male | $120.97 | $236.69 | $352.41 | $468.13 | |
| 35 | Female | $163.41 | $321.56 | $479.72 | $637.88 |
| Male | $179.16 | $353.06 | $526.97 | $700.88 | |
| 45 | Female | $255.72 | $506.19 | $756.66 | $1,007.13 |
| Male | $281.75 | $558.25 | $834.75 | $1,111.25 | |
| 55 | Female | $417.38 | $829.50 | $1,241.63 | $1.653.75 |
| Male | $462.66 | $920.06 | $1,377.47 | $1,834.88 |
Average burial insurance rates by age and gender
We began by comparing the average whole life insurance premium changes for different age groups. Life insurance premiums are determined using an individual’s age. Rates will continue to rise as you age since your life expectancy decreases.
The whole life insurance quotes below are for a life insurance policy with a death benefit of $20,000, $25,000, $30,000, and $40,000.
| Age | Gender | $20k | $25k | $30k | $40k |
|---|---|---|---|---|---|
| 55 | Female | $52.21 | $64.46 | $76.71 | $101.21 |
| Male | $65.30 | $80.81 | $96.32 | $134.18 | |
| 65 | Female | $78.82 | $97.72 | $116.63 | $154.43 |
| Male | $109.75 | $136.39 | $163.03 | $216.31 | |
| 75 | Female | $141.62 | $176.22 | $210.82 | $280.03 |
| Male | $196.74 | $254.13 | $293.51 | $390.28 | |
| 80 | Female | $193.66 | $241.28 | $288.89 | $384.12 |
| Male | $276.26 | $334.52 | $412.78 | $549.31 |
Overpriced Life Insurance
The following insurance companies overprice their life insurance. Why pay too much when you could either save money or buy twice the coverage?
- AAA Life Insurance
- Allstate Life Insurance
- American Family Life Insurance
- Erie Life Insurance
- Farmers Life Insurance
- Geico Life Insurance
- Globe Life Insurance
- State Farm Life Insurance
- Colonial Penn Life Insurance
- USAA Life Insurance
- Progressive Life Insurance
How do I get the best life insurance rate?
There’s no definitive answer to this question, as life insurance rates can vary significantly from person to person. However, there are a few things you can do to help ensure that you get the best possible rate on your life insurance policy:
- The best strategy is to shop around and compare quotes from multiple insurers when shopping for life insurance.
- Work with an experienced independent life insurance agent who can help you understand your options and find the best policy for your needs.
- Be sure to give accurate information when applying for life insurance coverage, as this will impact your quoted premium.
- Remember that life insurance rates can change over time, so it’s essential to review your policy periodically to ensure it meets your needs.
By following these tips, you can help ensure that you get the best possible rate on your life insurance policy.
Conclusion
Now that you have a better understanding of the average cost of life insurance, it’s time to determine how much coverage you need. Request a quote from our team, and we will help you get the best rates for your unique situation. Thanks for reading!
Need Help Getting Life Insurance Coverage?
If you have a preexisting medical condition and want to buy life insurance, you will need help from an expert. This person can help ensure you get coverage so you don’t get declined.
Warning: Applying for life insurance without a medical exam can be risky. If you get declined coverage, it could be at least two years before you can get any life insurance.
Frequently Asked Questions
How do I get the best price for life insurance?
The price of life insurance can vary depending on a person’s age, health, and coverage needs. Some people may get a better price on life insurance by shopping around and comparing rates from different insurers. Others may find that working with a life insurance agent or broker can help them get the best possible price on coverage.
What is a reasonable amount of life insurance?
Affordable life insurance is typically 10 to 12 times your annual salary. This coverage is usually enough to provide for your beneficiaries during your death. However, you may want to consider increasing your coverage if you have a large mortgage or other debts that need to be paid off, if you support dependents, or if you want to leave a financial legacy.
How much life insurance should I buy for myself?
The amount of life insurance you should buy for yourself depends on your circumstances. You’ll need to consider your dependents, debts, and financial goals. A life insurance agent can help you determine the right amount of coverage for you.
How much life insurance should a 50-year-old have?
A 50-year-old should have 10 to 12 times their annual salary in life insurance coverage. This coverage is typically enough to support their beneficiaries during their death. However, 50-year-old may want to consider increasing their coverage if they have a large mortgage or other debts that need to be paid off, if they support dependents, or if they want to leave a financial legacy.
How much a month is life insurance?
Life insurance premiums are based on several factors, including age, health, and the amount of coverage you purchase. A healthy 30-year-old man can expect to pay around $35 per month for a $500,000 policy. A 50-year-old woman with some health issues may pay closer to $90 per month for the same coverage.
How much life insurance can one person have?
There is no limit to the life insurance one can have. Some people purchase multiple policies to cover different needs, while others may have one policy that provides them with the coverage. It all depends on your circumstances.