How Much Does Level Term Life Insurance Cost?

By | April 29, 2023
term life insurance

Term life insurance is a type of life insurance policy that provides coverage for a specified period of time, typically between one and thirty years.

How Much Does Level Term Life Insurance Cost?

A healthy 35-year-old can expect to spend less than $24 per month for a 20-year level term life insurance policy with a death benefit payout of $500,000.

Term life insurance prices will vary depending on your age, health, medical history, and other risk factors such as your hobbies and driving record.

Level term life insurance is the most economical type of life insurance for the majority of people, particularly those in good health who do not engage in risky activities. However, not all life insurance companies evaluate your rates in the same way. The simplest approach to discover the cost of your term life insurance is to speak with a professional counselor.

Below are the average monthly rates for 20-year and 30-year level term policies at different death benefit amounts and ages. Women generally pay less for coverage than men, but individual health backgrounds and other criteria also impact the final price.

ALSO READ: Term Life Insurance: How It Works, Pros and Cons

Average 20-year level term life insurance rates

Age

Gender

$250,000 coverage amount

$500,000 coverage amount

$1 million coverage amount

25

Female

$14.39

$21.01

$32.53

Male

$17.26

$27.13

$43.73

35

Female

$16.71

$25.76

$42.01

Male

$18.88

$30.79

$51.05

45

Female

$28.90

$48.43

$86.32

Male

$35.84

$61.49

$112.47

55

Female

$61.86

$111.35

$206.69

Male

$84.59

$153.76

$281.13

Methodology: Monthly average estimates for male and female nonsmokers in a Preferred health categorization over a 20-year period. The monthly Policygenius Life Insurance Price Index is used to calculate rates.

ALSO READ: Level term Life Insurance: How It Works

Internal actuarial rate tables for life insurance carriers that offer policies through the Policygenius marketplace determine the index’s prices: Banner Life, Brighthouse Financial, Corebridge Financial, Lincoln Financial, Foresters Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. The illustration is current as of January 5, 2023.

Average 30-year level term life insurance rates

Age

Gender

$250,000 coverage amount

$500,000 coverage amount

$1 million coverage amount

25

Female

$19.61

$31.02

$50.56

Male

$24.04

$39.57

$67.10

35

Female

$24.02

$39.35

$68.35

Male

$28.14

$46.78

$83.26

45

Female

$46.02

$80.86

$147.63

Male

$60.11

$105.62

$194.99

55

Female

$119.49

$216.56

$403.90

Male

$166.17

$311.77

$585.72

 

  • Methodology: Monthly average estimates for male and female nonsmokers in a Preferred health categorization over a 30-year period. The monthly Policygenius Life Insurance Price Index is used to calculate rates.
  • Internal actuarial rate tables for life insurance carriers that offer policies through the Policygenius marketplace determine the index’s prices: Banner Life, Brighthouse Financial, Corebridge Financial, Lincoln Financial, Foresters Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica. The illustration is current as of January 5, 2023.
  • Even for modest level term policies, the cost of life insurance rises with age, rising an average of 4.5%-9% per year, as seen in the rate estimates above.
  • It also matters how old you are at the end of your tenure. This is why, for example, it is significantly more expensive for a 55-year-old to apply for a 30-year term that will cover them until the age of 85 than it is for a 35-year-old to acquire the same coverage until the age of 65.
  • If you need life insurance, buying sooner, while you’re younger (and likely healthier), can lock in reduced premiums for decades.

SOURCE: Papergist.com

Term Life Insurance

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