By analyzing life insurance rates by age, term, coverage, and rate class, consumers can observe trends regarding how different factors affect prices.
For instance, smokers can expect to pay 3 to 4 times more than non-smokers; although life insurance for smokers is still affordable when purchased at a young age. Similarly, our comparison of premiums vs death benefits and rate classes also highlights just how important your health is when comparing life insurance quotes, especially as the policy amount increases.
While life insurance rates are determined by many different factors, such as age, weight, current health, family medical history, and tobacco use, online quotes are still customized to your specific situation, and you may qualify for lower rates. After reviewing the average cost for your age, the only way to find the best and cheapest policy for your needs is to enter your zip code and compare free life insurance quotes.
Average Life Insurance Rates By Age
To compare term life insurance rates by age, we analyzed the cost of the most popular type of coverage: a 20 year term policy with a death benefit of $250,000. The average life insurance rates shown below demonstrate the close relationship between age, mortality, and prices.
All premiums are rounded to the nearest whole dollar for easy comparison.
Life Insurance Rates By Term
Below, we compared the average cost of life insurance by term length. Your chosen term period determines how long your policy will last, assuming all premiums are paid. Not surprisingly, short term life insurance is cheap because of the decreased risk to the insurance company. Furthermore, longer policy terms become even more expensive as you get older.
Life Insurance Rates By Death Benefit and Rate Class
Below, you will find the average life insurance rates categorized by death benefit and rate class. Rate classes are determined by your current and past health. Here is a general breakdown:
- Preferred Plus assumes no tobacco use in the last 5 years, no serious medical issues, cholesterol levels below 210, and blood pressure that doesn’t exceed 135/85.
- Preferred assumes no tobacco use in 3 years, above average health, no serious medical issues, cholesterol levels below 250, and blood pressure that doesn’t exceed 135/85.
- Select policies assume no tobacco use for the prior 12 months, good general health, cholesterol below 300, and blood pressure below 140/90.
- Standard policies assume tobacco use in the past year, good overall health otherwise, cholesterol below 300, and blood pressure below 140/90. A “Standard” rating can also mean no tobacco use but bad overall health.
Please note that different life insurance companies have different definitions and parameters per class.
10 Year Term Life Insurance Policy Costs
Below is a breakdown of the average cost of a 10 year term life insurance policy based on death benefit amounts and health ratings. All figures represent annual premiums.
20 Year Term Life Insurance Policy Costs
20 year term life insurance is more expensive than 10 year term life due to the increased risk for the insurance company. However, as a policyholder, you have the benefit of a longer term period without the hassle of renewing or repeating the application process, including the medical exam. If you are young and can afford it, a 20 or 30 year term length is a better choice. All figures represent annual premiums.
30 Year Term Life Insurance Policy Costs
In this table, you will notice that the price gap between “Preferred Plus” and “Standard” ratings has widened significantly. The cost of a 30 year term life policy demonstrates the amplified effects of poor health and bad lifestyle habits. All figures represent annual premiums.
Overall, what you should learn from comparing the cost of life insurance is that, to get the best and cheapest life insurance rates, you should buy a policy when you are young and in good health.