Average life insurance rates for July 2024
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BLUEPRINT
Updated 5:04 a.m. UTC July 1, 2024
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Life insurance is a valuable form of financial protection that can be customized to suit your budget and financial needs. The type of policy and amount of coverage you choose will determine how much you pay for coverage.
We analyzed rates from the best life insurance companies to give you an idea of how much you may need to budget for life insurance costs.
Why trust our life insurance experts
Our team of experts evaluates hundreds of insurance products and analyzes thousands of data points to help you find the best product for your situation. We use a data-driven methodology to determine each rating. Advertisers do not influence our editorial content. You can read more about our methodology below.
- 1,837 rates reviewed.
- 28 insurers evaluated.
- 5 levels of fact checking.
How much does life insurance cost?
For a 20-year, $500,000 term life insurance policy, a 30-year-old non-smoking woman in excellent health can expect to pay an average of $186 a year. A man of the same age and health status can expect life insurance costs of about $220 a year.
Whole life insurance, a type of permanent life insurance, offers lifelong protection, but it can cost you more than a term life insurance policy purchased at the same age and health status. A 30-year-old woman shopping for a $500,000 whole life policy can expect an average life insurance rate of $352 per year. The same policy would cost a 30-year-old man an annual average of $394.
Average cost of a $500,000 life insurance policy
| POLICYHOLDER | 20-YEAR TERM LIFE POLICY | WHOLE LIFE INSURANCE POLICY |
|---|---|---|
Female, age 30
| $186
| $352
|
Female, age 40
| $282
| $506
|
Male, age 30
| $220
| $394
|
Male, age 40
| $334
| $564
|
Term life insurance rates by age
Term life insurance rates are generally cheaper than those for permanent life insurance. The younger and healthier you are when you purchase a policy, the lower your rates for term life insurance will be.
Average cost of term life insurance for a female, by age
Term life insurance rates are typically cheaper for women. The table below provides the average annual cost of 20-year term life insurance for a non-smoking female in excellent health from age 25 to age 65 for a $250,000 and $500,000 term life insurance policy.
| FEMALE | $250,000 COVERAGE | $500,000 COVERAGE |
|---|---|---|
Age 25
| $114
| $176
|
Age 35
| $123
| $203
|
Age 45
| $246
| $422
|
Age 55
| $524
| $973
|
Age 65
| $1,568
| $3,028
|
Average cost of term life insurance for a male, by age
When compared to term life insurance rates for women, men tend to pay more and the difference increases with age. The table below provides the average annual cost of a 20-year term life insurance policy for a non-smoking male in excellent health from age 25 to age 65, with coverage amounts of $250,000 and $500,000.
| MALE | $250,000 COVERAGE | $500,000 COVERAGE |
|---|---|---|
Age 25
| $133
| $214
|
Age 35
| $142
| $237
|
Age 45
| $303
| $534
|
Age 55
| $701
| $1,324
|
Age 65
| $2,273
| $4,472
|
Life insurance costs by term length
The term length you choose will play a major factor in your life insurance cost. The longer your term, the higher the cost when all other factors are equal. The tables below show average annual life insurance rates for a $500,000 life insurance policy based on the term length and gender.
Average cost of term life insurance for a female, by term length
| TERM LENGTH | AGE 30 | AGE 40 | AGE 50 | AGE 60 |
|---|---|---|---|---|
10 years
| $129
| $179
| $385
| $844
|
20 years
| $186
| $282
| $639
| $1,652
|
30 years
| $290
| $455
| $1,109
| –
|
Average cost of term life insurance for a male, by term length
| TERM LENGTH | AGE 30 | AGE 40 | AGE 50 | AGE 60 |
|---|---|---|---|---|
10 years
| $154
| $205
| $469
| $1,264
|
20 years
| $220
| $334
| $817
| $2,348
|
30 years
| $343
| $579
| $1,467
| –
|
Life insurance cost without a medical exam
Many life insurance companies offer no-exam life insurance. This life insurance product allows eligible individuals to skip medical exams, which are required for policies that undergo traditional underwriting.
The table below shows the average annual cost of no-exam life insurance policies with a 20-term and $500,000 in coverage.
| AGE | COST FOR WOMEN | COST FOR MEN |
|---|---|---|
| 30 | $230
| $281
|
| 40 | $351
| $427
|
| 50 | $870
| $1,152
|
Interested in no-exam life insurance? The best no-exam life insurance companies of 2024
Average permanent life insurance rates
Permanent life insurance is generally more expensive than term life coverage because it lasts a lifetime — as long as you pay the premiums — and typically includes a cash value component in the form of a savings or investment account.
There are multiple types of permanent life insurance, including whole life insurance, universal life insurance, guaranteed universal life insurance and indexed universal life insurance. The type of coverage you choose is one of the factors that will dictate your life insurance costs.
Average cost of a whole life insurance policy by age
Whole life insurance is generally more expensive than term life insurance because it includes a cash value component and lasts a lifetime. However, if you purchase a whole life insurance early in life, while you’re still young and healthy, it can be more cost-effective when compared to a term life insurance purchased later in life, or renewed at the end of a 20- or 30-year term.
The tables below provide average whole life insurance rates by age and gender.
Rates of a whole life policy for women
| AGE | $250,000 OF COVERAGE | $500,000 OF COVERAGE | $1,000,000 OF COVERAGE |
|---|---|---|---|
| 30 | $180
| $352
| $697
|
| 40 | $262
| $506
| $1,005
|
| 50 | $387
| $752
| $1,496
|
Rates of a whole life policy for men
| AGE | $250,000 OF COVERAGE | $500,000 OF COVERAGE | $1,000,000 OF COVERAGE |
|---|---|---|---|
| 30 | $201
| $394
| $781
|
| 40 | $293
| $564
| $1,121
|
| 50 | $445
| $847
| $1,686
|
Factors that affect rates
Insurers use several factors to determine how much life insurance costs. When you purchase a policy, your life insurance cost will be based on:
- Age. The younger you are, the lower your premium.
- Gender. Women tend to pay less than men for coverage.
- Policy type and coverage amount. Term life insurance is cheaper than permanent life insurance policies, and the more coverage you buy, the higher your premium will be.
- Height and weight. Insurers use your height and weight as a baseline indicator of your health. People with a higher body mass index (BMI) typically have higher rates.
- Health. The healthier you are the more likely you are to qualify for lower rates when compared to someone with health issues. People with a history of health issues or chronic, critical or terminal illnesses may also find it difficult to be approved for some types of life insurance.
- Health history of your immediate family. If your parents or siblings have health issues, you may pay more than someone without that history.
- Nicotine or marijuana use. If you smoke or use other forms of tobacco or nicotine, such as vaping or chewing tobacco, you will pay more for coverage. Using marijuana can also increase your life insurance rates.
- Risky occupations and hobbies. Some jobs and hobbies are riskier than others. If you are a police officer, you may pay more for life insurance than an accountant, for instance.
How can I lower my life insurance rates?
The best way to get affordable life insurance is to purchase coverage when you are young and healthy. Other ways to lower your life insurance costs include:
- Choosing a term life insurance policy over a permanent life insurance policy.
- Improving your overall health and eliminating risk factors, like smoking.
- Lowering your coverage amount or reducing your policy term, though you should always weigh the pros and cons before making these decisions.
- Shopping around and getting at least three life insurance quotes before you choose a policy and company.
- Checking to see if you’re eligible for any discounts, such as a bundling discount if you buy a life insurance policy through the same company as your homeowners insurance or auto insurance.
Find affordable coverage: Cheapest life insurance
What’s the right amount of life insurance for me?
The amount of coverage you need often depends on your reason for buying a life insurance policy. You might be looking to ensure your loved ones have enough coverage to manage the loss of your salary or cover a mortgage when you die. Or you may want life insurance so your family can cover the cost of your funeral expenses.
To determine how much coverage is right for you, identify and add up the expenses you want to cover or the income you want to replace.
Some factors to consider include:
- Your earnings over the expected course of your working life. If you expect to work until age 60, add up your projected earnings over that time so your loved ones can continue to depend on that income.
- Financial goals and obligations. Do you have a mortgage? Plan to pay tuition for your child’s education? Your existing and expected financial obligations can help you determine how much life insurance coverage you need.
- How long you want to support your family. Do you want your benefits to support your loved ones for a few years or for a decade or more? The longer your timeline, the more coverage you need to ensure adequate support.
- Inflation. A death benefit of $250,000 today likely won’t go as far 10, 20 or 30 years from now. Though you can’t predict the exact amount of inflation, it’s worth considering it when you’re selecting a coverage amount.
Another more straightforward way to choose a coverage amount is to multiply your annual income by 10. Just keep in mind that this method is best used as a starting point rather than a final solution. Otherwise, you may not choose a policy with enough coverage, especially if you are planning to have kids or are expecting to earn a higher income in later years.
Wondering which company to choose for life insurance? Learn more about Gerber Life Insurance company.
Is life insurance worth it?
A life insurance policy and the associated costs may be worth it if you:
- Have dependents that rely on you for financial support.
- Have a mortgage and want to ensure your loved ones can maintain payments after you die.
- Want to cover a child’s educational expenses if you die before they graduate.
- Have a business partner and are considering life insurance as part of a succession plan or buy/sell agreement.
Life insurance costs may not be worth it if you don’t have dependents who rely on you or if you have other means to support loved ones after your death, such as money in savings or a retirement account.
The best way to determine if life insurance is worth it for you is to speak with a trusted financial advisor who can look at your entire financial picture and discuss your goals while alive and in the event of your death.
Methodology
Our insurance experts evaluated the rates for more than 20 life insurance companies to determine the average cost of term and whole life coverage for individuals of varying ages. Our evaluation included rates for both males and females at ages 30, 40, 50 and 60 for coverage amounts between $250,000 and $2 million. Rates are based on healthy applicants who do not use nicotine or tobacco products.
Frequently asked questions (FAQs)
Buying life insurance when you’re young, such as in your 20s or 30s is best. Life insurance premiums tend to be lower the younger you are. Purchasing a policy earlier in life can help you find the cheapest life insurance policy for the amount of coverage you want and save you substantial money over the course of your lifetime.
Males typically pay more for life insurance than females. However, life insurance rates depend on numerous factors, including your age, health, smoking or nicotine use status and the type and amount of coverage you want. That’s why it’s so important to shop around for coverage and compare life insurance quotes before you make your decision.
While most life insurance companies won’t factor in your credit score when determining your life insurance rate, some aspects of your credit history may be factored in. For instance, a life insurance company may look at your credit history to see if you’ve filed for bankruptcy, and they may factor certain attributes into your overall risk factor.
It’s important to note that all life insurance companies set their own approach to the underwriting process, what factors they will consider and how they weigh those factors.
Protective has the best life insurance, based on our analysis. However, the best company for you will depend on the type of coverage you want.
If you’re looking for the best term life insurance, Symetra may be a good fit.
If you’re shopping for the best whole life insurance, State Farm or Northwestern Mutual are worth considering.
Compare life insurance quotes to determine which company best meets your unique needs and offers coverage at an affordable price.
Term life insurance is a policy that locks in rates and coverage for a set period of time, or term. If you die during the term, your beneficiaries will receive a death benefit.
When the term is up, you can usually renew the policy, for a higher rate. If you don’t renew it, your policy will expire and your beneficiaries will no longer receive a death benefit when you die.
Learn more: How does life insurance work?.
We analyzed the monthly rate for a 20-year, $500,000 life insurance policy and found that:
- A healthy, 30-year-old woman can expect an average monthly rate of $17.
- A healthy, 30-year-old man can expect an average monthly rate of $21.
How much you pay for a $500,000 life insurance policy will vary depending on the type of coverage you purchase as well as other factors, such as your age, health and gender.
Blueprint is an independent publisher and comparison service, not an investment advisor. The information provided is for educational purposes only and we encourage you to seek personalized advice from qualified professionals regarding specific financial decisions. Past performance is not indicative of future results.
Blueprint has an advertiser disclosure policy. The opinions, analyses, reviews or recommendations expressed in this article are those of the Blueprint editorial staff alone. Blueprint adheres to strict editorial integrity standards. The information is accurate as of the publish date, but always check the provider’s website for the most current information.
