Average Cost of Life Insurance Rates in 2020. Compare by Age, Gender, and Rate Chart.
Everyone always asks, how much is life insurance? The truth is there is no average cost of life insurance. Insurance companies use many factors to determine your rates.
When it comes to price of life insurance there really is no, one-size-fits-all type or amount of coverage. Because of that, life insurance rates of a given policy can vary – sometimes significantly – from one person to another.
To help better understand your cost you need to first understand how a company comes up with their prices.
So let’s take a look.
How Life Insurance Rates are Determined
There are many factors that go into the pricing of a life insurance policy. Some are known at the time of quote and some factors are unknown and will not be known until the medical records, exam, and reports are completed.
The Known Factors
If you know these 6 parameters you can generate quotes from any carrier.
The known factors/parameters will include your:
- Tobacco Use
- Product Type (the type of policy such as term or permanent).
- Death Benefit (the amount of coverage being purchased)
With these 6 parameters, you can get an average life insurance cost. However, you still have to calculate the unknown factors below.
The unknown factors are things that we do not know when running a quote which can affect your average life insurance rates.
- Medical History – your past medical history and any doctor/hospital visits can drastically affect the average cost.
- Exam Results – the final cost of life insurance will not be determined until the result of your exam results have been reviewed.
- MVR – Your driving record over the last 5 years.
- Prescription History – The history of any medications you have taken.
- MIB Report – What hits are on the medical information bureau report.
- Rate Class – Preferred plus, preferred, standard plus or standard rate assigned after an offer is made by the carrier.
- Height and Weight – Your height and weight will determine if you can qualify for a certain rate class. See carrier height and weight charts here.
The true cost of life insurance is never known until the underwriter knows these things above. Certainly, health will also play a key role in the price that is charged for a policy. For example, those who are considered to be in “average” health will usually pay a standard rate. If you have certain health conditions, you will likely pay more. Alternatively, if you are in excellent health, then you could qualify for a lower or preferred premium.
Other factors that are considered.
- Occupation – Those who work in a more “risky” occupation, such as firefighting, will usually pay more than an insured who works in a safer line of work.
- Risky Activities – If you engage in risky hobbies or activities such as skydiving, scuba diving, or rock climbing, you are apt to pay more for life insurance, as these may put you at a higher risk of a claim.
- Insurance Company – Just like with many other products and services, the price that is charged for life insurance can vary from one company to another – even for the same type and amount of coverage. With that in mind, it can be beneficial to shop around and get premium quotes from several insurers before you make a long-term commitment to one plan.
Given the number of determinants, it can at times be difficult to come up with an average life insurance cost. In fact, it’s easy to see how life insurance prices may vary – sometimes significantly – from one person to another, based on their situation and needs.
However, knowing the price of life insurance for your particular needs can be beneficial. That’s because you will be more easily able to budget for it.
One way that you can narrow down your potential cost of life insurance is to use our quote engine, where you can quickly shop prices from over 30 of the top life insurance companies.
How much is term life insurance for a male
|Male – 37||$16||$25||$45|
|Male – 42||$22||$38||$69|
|Male – 47||$34||$62||$117|
|Male – 52||$48||$88||$165|
|Male – 57||$79||$145||$278|
As you can see in the example below the biggest factor in the average life insurance prices depends on your rate class. This is how prices would look for a 40-year-old male at each rates class for a 20-year term policy with a $250,000 death benefit.
How much is term life insurance for a female
Life insurance rates for a female are going to cost much less than for a male. This is due to life expectancy. Females live longer than males on average so therefore the prices are lower. Compare the male charts above and you can see the cost difference for yourself.
|Female – 37||$13||$21||$34|
|Female – 42||$18||$30||$52|
|Female – 47||$25||$44||$80|
|Female – 52||$37||$66||$122|
|Female – 57||$58||$103||$200|
Here again, you can see how how much life insurance cost for a female at each rate class. The better your health the better your rate class and the lower your cost of life insurance will be.
How much is whole life insurance?
Whole life insurance costs a lot more than term insurance. Whole life is permanent coverage and is designed to last your entire life, unlike term insurance. As well, this type of policy will build up cash value in the policy, term insurance does not build cash value.
Whole Life, Preferred Rates, Non-Tobacco, Rates Shown.
|Male – 37||$63||$105||$254|
|Male – 42||$74||$130||$317|
|Male – 47||$92||$162||$397|
|Male – 52||$116||$205||$505|
|Male – 57||$147||$260||$642|
Average cost of life insurance rates calculator
Term life insurance rates will vary based on age, rate class, tobacco use, gender, state, and term length. A ten-year term being the cheapest policy and a 30-year policy being the most expensive plan. You don’t need life insurance rate charts just use the tools below.
Try out our cost widget here.
Ready to find your price?
Hopefully, by this point you have a good idea about how much life insurance costs.
One of the primary criteria when making any type of major purchase is the cost – and the same holds true for life insurance. Even though proceeds can essentially be “bought” for pennies on the dollar, it is still important to know how the policy’s premium will fit into your overall budget.
Just like you would when comparing the prices of other goods and services, knowing the average price can be extremely beneficial. As consumers of products and services, it is oftentimes helpful to study the average prices of items before we purchase them. That way, we can better gauge whether or not we are getting a “good deal.”
Insurance Geek can make the process of choosing the right policy and premium payment easy. We work with more than 30 top carriers in the industry to find you the best rates. Because of that, we can shop and compare policy features and prices, so that you can make the best decision possible.
We can easily help you find your average cost of life insurance. Talk to a Insurance Geek today!