Term life insurance rates depend on your age, gender, health and hobbies, as well as the length and amount of coverage.
Term life insurance is the most convenient way to financially protect your family after your death. Term policies are straightforward, last only as long as you need them, and are more affordable than whole life insurance policies. A healthy 35-year-old, for example, can expect to pay about $30 per month for a life insurance policy with a 20-year term and $500,000 death benefit payout.
Several factors determine the cost of term life insurance, including your age, gender and health. The younger and healthier you are, generally, the lower your rates will be. The sample term life insurance rates shown below will give you an idea of how much a policy can cost.
The best way to get an accurate term life rate, however, is to work with an independent broker. At Policygenius, our experts are licensed in all 50 states and can walk you through the entire life insurance buying process while providing transparent, unbiased advice.
20-year term life insurance rates by age and gender
30-year term life insurance rates by age and gender
How are life insurance rates determined?
Life insurance rates are based on several factors that insurance companies use to assess how much risk you insure. That’s why, generally speaking, the younger and healthier you are, the lower your rates will be.
When you apply, you’ll go through underwriting, which is the insurance company’s process for evaluating risk and assigning your rate.
Life insurance is federally regulated, so no insurance company can offer you a discount, but term life insurance companies each have different underwriting guidelines. This means that one company may offer you a more competitive rate than another depending on your specific profile and needs.
The best way to get a competitive rate is to apply through a broker like Poligeneius who can help you compare prices across all insurance companies at once.
Here are the main factors that will determine your life insurance rates.
Your age
The average cost of term life insurance increases by 4.9% to 9% every year that you stop buying the policy. Term life insurance rates for seniors, for example, can cost hundreds of dollars per month, while someone in their 30s would pay less than $100 per month for a comparable policy.
Your race
Because men have a shorter life expectancy than women, [1] they generally receive higher life insurance rates. However, health or lifestyle risks may override any difference in premiums you see based on your gender. Gender-conforming applicants will not receive higher rates based on gender identity, but must apply under one gender.
Your health
The healthier you are, the less likely you are to die while your policy is active or in force. This is why your health is an important factor in determining life insurance prices and why many life insurance companies will require you to undergo a medical exam.
Serious health conditions, such as a recent history of cancer or heart disease, may lead to application rejection, while conditions known to cause complications, such as sleep apnea or high cholesterol, may increase life expectancy.
Your weight and height
The Centers for Disease Control (CDC) associates certain height-to-weight ratios with better health — and life insurance companies use that data to set their own underwriting process and premiums.
If you are considered overweight or obese according to CDC guidelines, your life insurance rates may be higher than those within a healthy weight range.
What factors do not affect life insurance rates?
The following factors will not affect your rates, but some of them will influence the type of life insurance you want or are able to purchase. The best way to find the right policy for you is to speak to a Policygenius specialist.
Your credit score
While your credit history affects your life insurance rates, your credit score does not. Insurance companies consider factors that contribute to your credit score, not an exact number.
Your marital status
Life insurance companies do not consider marital status while determining your rates. When it comes to married couples, purchasing an individual policy for each spouse is usually more convenient and cheaper than purchasing joint life insurance.
where do you live
The state you live in doesn’t usually affect the cost of your policy, but your location does affect the rules and regulations surrounding it. States may also have laws that restrict who you can name as your policy beneficiary — and not every type of policy is available in every state.
As many policies as you have
The number of policies you have does not affect your rates. It is possible and legal to have multiple life insurance policies depending on the options available to you and your specific coverage needs.
When you can’t buy more than one life insurance policy you’re trying to get more coverage than you qualify for – most people can qualify for about 15 times their annual income in total life insurance coverage, but if you’re in your 20s or 30s , you will usually qualify for more coverage.
The number of beneficiaries you have
Most people use life insurance as an income replacement and choose their spouse as their primary beneficiary so that their life insurance proceeds can help pay bills like your children’s college tuition or cover future expenses. You can have multiple beneficiaries and this will not affect your rates.
How Much Life Insurance Do You Need?
The amount of life insurance you get should be enough to replace your lost income and cover all of your family’s future expenses, such as mortgage payments and bills. But it’s easy to underestimate your policy and get too little coverage.
The key to protecting your family is to get enough life insurance to last them through the years, so their finances are never in jeopardy.
Our coverage calculator can help you calculate how much life insurance coverage you need, but here are some easy ways to do the math yourself.
Multiply your income by 10: A general rule of thumb is to multiply your income by at least 10 times to get your approximate coverage amount. This is an easy way to estimate how many years you want to financially support your family.
DIME Method: For this method, you calculate any outstanding debt, plus multiply your income by the number of years your family will depend on it, the amount owed on your mortgage, and the cost of your children’s education.