Understanding term life insurance rates
How affordable are term life insurance rates? We pulled some numbers to give you an idea.
Term life insurance is plain, old vanilla life insurance. It protects your family for a set period of time. If you die during that window (usually 10, 20 or 30 years), your beneficiary receives a payout (the ominous death benefit). If you don’t, the policy expires. Not fancy, we know, but that’s the point: Term life insurance is designed to be easy and affordable. How affordable exactly? The average term life insurance rate on a $500,000 policy for a 35 to 39 year old is $26.20 a month, according to Policygenius data.
In this article:
- How term life insurance rates are set
- Finding affordable term life insurance rates
- The best term life insurance rates by age
- 10-year term life insurance rates by age
- 20-year term life insurance rates by age
- 30-year term life insurance rates by age
- Is term life insurance the right choice?
How term life insurance rates are set
The earlier in life that you purchase coverage, the less you'll pay throughout the term. Your term life insurance premiums, however, are actually determined by more than just your age. Other major factors include:
- Medical exam: Serious illness, like cancer or heart disease, can lead to denial, while conditions known to cause complications down the line, like sleep apnea, high cholesterol, and obesity lead to higher rates.
- Health history: Conditions or poor habits from the past, like smoking, plus a history of certain illness in your family, can also increase rates.
- Driving record: Moving violations and past car accidents are seen as a red flag.
- Lifestyle: Drug or alcohol use and risky hobbies, like skydiving, are considered problematic.
Insurers use a complex classification system to determine your personal premium rate, but, broadly, the best rates go to younger, healthier applicants since they pose less risk to the insurer — meaning they’re less likely to die — than their older, unhealthier counterparts.
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How to find affordable term life insurance rates
The price also goes up alongside the term and amount of coverage, which is why it’s important to pinpoint how much life insurance you truly need. You don’t want to unnecessarily overpay for a policy.
Having said that, here are some ways to find the most affordable life insurance rates for you:
- Comparison-shop across insurers. Some life insurance companies are more forgiving when it comes to certain health conditions
- Consider paying premiums annually. Many insurers give a discount to applicants who agree to pay in bulk.
- Get healthier. Insurers usually let you take the medical exam again 12 months after your policy goes into effect, so, if you’re unhappy with your rates, try kicking a bad habit (ahem, smoking) or getting in better shape.
- Opt for a shorter term or less coverage. Not ideal, we know, but some insurance is better than none. Term life insurance rates are up to five to 15 times cheaper than whole life insurance. That’s because whole life insurance lasts your whole life — as long as you’re paying premiums. Plus, it has a cash-value component that can prove useful as part of a highly customized estate planning strategy. You can learn about whole life insurance rates by age here.
Learn more about finding affordable life insurance.
The best term life insurance rates
The tables below show the average premium rates for term life insurance purchased by people between the ages of 25 and 59, sorted by the coverage amount. These rates comprise policies that can be purchased through Policygenius. While these term life insurance rate tables are a starting point for understanding how premiums change with age, you can get a more personalized life insurance quote here.
10-year term life insurance rates by age
| Age | $250,000 | $500,000 | $750,000 | $1 million | $2 million | |
|---|---|---|---|---|---|---|
| 20 | Male | $11.43 | $17.27 | $23.54 | $27.69 | $49.93 |
| Female | $10.25 | $14.18 | $18.70 | $22.36 | $40.07 | |
| 25 | Male | $11.43 | $17.27 | $23.54 | $27.52 | $49.93 |
| Female | $10.25 | $14.18 | $18.70 | $22.83 | $40.07 | |
| 30 | Male | $11.43 | $17.20 | $23.54 | $27.52 | $49.93 |
| Female | $10.38 | $14.18 | $18.70 | $22.36 | $40.07 | |
| 35 | Male | $11.63 | $17.68 | $24.16 | $28.38 | $50.40 |
| Female | $10.60 | $15.30 | $20.44 | $24.08 | $41.83 | |
| 40 | Male | $14.53 | $23.06 | $32.08 | $38.69 | $71.57 |
| Female | $13.08 | $20.16 | $27.73 | $32.09 | $59.19 | |
| 45 | Male | $20.96 | $35.17 | $50.25 | $61.50 | $118.00 |
| Female | $18.88 | $30.83 | $43.67 | $52.46 | $101.68 | |
| 50 | Male | $30.30 | $54.23 | $78.03 | $94.94 | $184.79 |
| Female | $25.24 | $43.93 | $62.73 | $78.16 | $151.32 | |
| 55 | Male | $45.81 | $82.56 | $120.30 | $145.65 | $286.30 |
| Female | $34.45 | $62.80 | $88.49 | $114.96 | $224.92 | |
| 60 | Male | $70.19 | $128.99 | $191.13 | $241.45 | $477.90 |
| Female | $50.23 | $93.88 | $136.87 | $172.00 | $338.99 |
Sample monthly premium rates based on Preferred health ratings for a 20-year term life insurance policy for a non-smoker; quotes based on policies offered by Policygenius in 2019.
20-year term life insurance rates by age
| AGE | $250,000 | $500,000 | $750,000 | $1 MILLION | $2 MILLION | |
|---|---|---|---|---|---|---|
| 20 | Male | $17.82 | $28.26 | $39.76 | $47.25 | $89.25 |
| Female | $14.49 | $21.65 | $29.77 | $35.03 | $64.81 | |
| 25 | Male | $17.48 | $27.66 | $38.87 | $46.15 | $87.04 |
| Female | $14.52 | $21.76 | $29.95 | $35.55 | $65.92 | |
| 30 | Male | $17.85 | $28.73 | $40.48 | $48.20 | $91.15 |
| Female | $15.17 | $23.02 | $31.88 | $37.43 | $69.61 | |
| 35 | Male | $19.05 | $30.67 | $43.30 | $52.16 | $99.07 |
| Female | $15.17 | $23.02 | $31.88 | $37.43 | $69.61 | |
| 40 | Male | $24.32 | $41.02 | $58.48 | $72.69 | $140.13 |
| Female | $28.51 | $47.53 | $68.60 | $86.33 | $167.41 | |
| 45 | Male | $35.54 | $60.88 | $88.70 | $113.03 | $220.80 |
| Female | $28.51 | $47.53 | $68.60 | $86.33 | $167.41 | |
| 50 | Male | $53.70 | $94.57 | $138.68 | $176.97 | $348.68 |
| Female | $41.78 | $71.68 | $104.60 | $132.64 | $232.74 | |
| 55 | Male | $85.75 | $153.96 | $225.24 | $289.64 | $574.03 |
| Female | $61.29 | $108.88 | $159.50 | $209.21 | $413.16 | |
| 60 | Male | $150.65 | $266.74 | $390.84 | $504.46 | $1,003.66 |
| Female | $110.80 | $192.52 | $283.21 | $361.92 | $718.58 |
Sample monthly premium rates based on Preferred health ratings; quotes based on policies offered by Policygenius in 2020.
30-year term life insurance rates by age
| Age | $250,000 | $500,000 | $750,000 | $1 million | $2 million | |
|---|---|---|---|---|---|---|
| 20 | Male | $22.15 | $37.84 | $55.04 | $69.40 | $133.72 |
| Female | $17.54 | $27.52 | $39.99 | $49.45 | $93.74 | |
| 25 | Male | $22.35 | $37.84 | $55.04 | $69.40 | $133.72 |
| Female | $17.84 | $28.38 | $39.99 | $49.45 | $93.74 | |
| 30 | Male | $23.54 | $39.99 | $57.40 | $73.61 | $142.07 |
| Female | $19.56 | $32.68 | $46.44 | $58.46 | $111.80 | |
| 35 | Male | $25.28 | $43.56 | $62.76 | $78.99 | $152.53 |
| Female | $21.67 | $37.02 | $52.95 | $66.04 | $127.38 | |
| 40 | Male | $34.18 | $60.76 | $88.56 | $112.50 | $220.00 |
| Female | $28.54 | $49.75 | $72.05 | $91.25 | $177.50 | |
| 45 | Male | $54.16 | $99.24 | $146.28 | $189.00 | $372.99 |
| Female | $40.72 | $72.58 | $106.29 | $136.71 | $268.71 | |
| 50 | Male | $83.92 | $154.24 | $228.78 | $299.06 | $593.42 |
| Female | $60.41 | $109.82 | $162.15 | $210.25 | $415.49 | |
| 55 | Male | $147.06 | $284.53 | $424.22 | $560.56 | $1,115.97 |
| Female | $103.80 | $188.51 | $280.19 | $369.28 | $733.41 | |
| 60 | Male | N/A | N/A | N/A | N/A | N/A |
| Female | N/A | N/A | N/A | N/A | N/A |
Sample monthly premium rates based on Preferred health ratings; quotes based on policies offered by Policygenius in 2019.
N/A = Policies not available for this age/term/coverage amount
Term life insurance rates vs. whole life insurance rates
Term life insurance policies are five to 15 times cheaper than whole life insurance, making it the more affordable option when it comes to your family's financial protection. In fact, whole life insurance policies can become so unaffordable that 45% of them are abandoned within the first ten years of the policy.
When it comes to affordability, term life insurance takes the cake.
Is term life insurance the right choice?
Term life insurance tends to be the best policy option for most people due to its affordability. If you aren't able to pay the policy premiums, you lose your life insurance — which is why whole life insurance isn't usually the right choice for life insurance coverage. You can speak with a Policygenius agent for free to determine the best life insurance policy for your individual circumstance.
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