Average Cost of Life Insurance
Updated: October 1st, 2024
The cost of life insurance greatly depends on your age, health, coverage amount, and more. But it’s helpful to look at some averages to get an idea of what many can expect to pay.
This article breaks down the average costs of life insurance, focusing on term life insurance, whole life insurance, and providing an overall cost comparison.
Term Life Insurance
Term life insurance is a popular choice due to its affordability and simplicity. It provides coverage for a specific period, usually 10, 20, or 30 years. If the policyholder passes away during the term, the beneficiaries receive the death benefit. Learn more about term life insurance.
Average Cost of Term Life Insurance in October 2024
- Age 30: A healthy 30-year-old non-smoker might pay around $20-$30 per month for a 20-year term policy with a $500,000 death benefit.
- Age 40: A healthy 40-year-old non-smoker might pay about $30-$40 per month for the same coverage.
- Age 50: For a healthy 50-year-old non-smoker, the cost might be around $50-$60 per month for a similar policy.
Average Monthly Cost of Term Life Insurance (20-year policy) by Age
| Age | Gender | Coverage Amount | Average Monthly Premium |
|---|---|---|---|
| 25 | Male | $250,000 | $10 - $15 |
| 25 | Female | $250,000 | $8 - $12 |
| 25 | Male | $500,000 | $15 - $20 |
| 25 | Female | $500,000 | $12 - $18 |
| 30 | Male | $250,000 | $15 - $20 |
| 30 | Female | $250,000 | $12 - $18 |
| 30 | Male | $500,000 | $25 - $30 |
| 30 | Female | $500,000 | $20 - $25 |
| 40 | Male | $250,000 | $20 - $30 |
| 40 | Female | $250,000 | $18 - $25 |
| 40 | Male | $500,000 | $35 - $45 |
| 40 | Female | $500,000 | $30 - $40 |
| 50 | Male | $250,000 | $45 - $55 |
| 50 | Female | $250,000 | $40 - $50 |
| 50 | Male | $500,000 | $80 - $90 |
| 50 | Female | $500,000 | $65 - $80 |
The data in the charts are based on averages from a variety of reputable sources, including life insurance industry reports, insurance company rate quotes, and consumer research articles. Our team of experts have reviewed such information to provide a range that reflects common pricing for different ages, genders, and coverage amounts. Actual premiums can vary widely based on factors like health history, lifestyle, and the specific insurance provider. The figures presented are rounded averages to give a clear picture of typical costs.
Whole Life Insurance
Whole life insurance provides coverage for the policyholder’s entire lifetime, as long as premiums are paid. In addition to the death benefit, it also includes a savings component, which accumulates cash value over time. Whole life insurance tends to be more expensive than term life insurance due to its lifelong coverage and cash value component. Learn more about whole life insurance.
Average Cost of Whole Life Insurance in October 2024
- Age 30: A healthy 30-year-old non-smoker might pay approximately $250-$300 per month for a whole life policy with a $500,000 death benefit.
- Age 40: A healthy 40-year-old non-smoker might pay around $350-$400 per month for the same coverage.
- Age 50: For a healthy 50-year-old non-smoker, the cost might be about $600-$700 per month for a similar policy.
Average Monthly Cost of Whole Life Insurance by Age
| Age | Gender | Coverage Amount | Average Monthly Premium |
|---|---|---|---|
| 25 | Male | $250,000 | $150 - $200 |
| 25 | Female | $250,000 | $130 - $180 |
| 25 | Male | $500,000 | $300 - $350 |
| 25 | Female | $500,000 | $250 - $300 |
| 30 | Male | $250,000 | $180 - $230 |
| 30 | Female | $250,000 | $160 - $210 |
| 30 | Male | $500,000 | $350 - $400 |
| 30 | Female | $500,000 | $300 - $350 |
| 40 | Male | $250,000 | $250 - $300 |
| 40 | Female | $250,000 | $220 - $270 |
| 40 | Male | $500,000 | $500 - $600 |
| 40 | Female | $500,000 | $450 - $550 |
| 50 | Male | $250,000 | $400 - $500 |
| 50 | Female | $250,000 | $350 - $450 |
| 50 | Male | $500,000 | $750 - $900 |
| 50 | Female | $500,000 | $650 - $800 |
The data in the charts are based on averages from a variety of reputable sources, including life insurance industry reports, insurance company rate quotes, and consumer research articles. Our team of experts have reviewed such information to provide a range that reflects common pricing for different ages, genders, and coverage amounts. Actual premiums can vary widely based on factors like health history, lifestyle, and the specific insurance provider. The figures presented are rounded averages to give a clear picture of typical costs.
Factors Influencing Cost
Several factors influence the cost of life insurance, regardless of the type:
- Age: Younger policyholders typically pay lower premiums.
- Health: Healthier individuals tend to get better rates.
- Coverage Amount: Higher coverage amounts result in higher premiums.
- Lifestyle: Smokers and those with high-risk occupations or hobbies may face higher costs.
Try Our Online Life Insurance Calculator
Day in and day out, we talk to families across the U.S. who are under the impression they cannot afford life insurance. That’s why Everyday Life is on a mission to educate people on the options available to them. Whether you have never had a life insurance policy or are reevaluating your options, we encourage you to try our online calculator. It’s free, totally anonymous, and doesn’t even require an email address. See what offers are available to you today.
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