Ashlee is an insurance editor, journalist and business professional with an MBA and more than 17 years of hands-on experience in both business and personal finance. She is passionate about empowering others to protect life's most important assets. Wh.
Ashlee Valentine Deputy Editor, InsuranceAshlee is an insurance editor, journalist and business professional with an MBA and more than 17 years of hands-on experience in both business and personal finance. She is passionate about empowering others to protect life's most important assets. Wh.
Written By Ashlee Valentine Deputy Editor, InsuranceAshlee is an insurance editor, journalist and business professional with an MBA and more than 17 years of hands-on experience in both business and personal finance. She is passionate about empowering others to protect life's most important assets. Wh.
Ashlee Valentine Deputy Editor, InsuranceAshlee is an insurance editor, journalist and business professional with an MBA and more than 17 years of hands-on experience in both business and personal finance. She is passionate about empowering others to protect life's most important assets. Wh.
Deputy Editor, Insurance Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
Michelle Megna Lead Editor, InsuranceMichelle is a lead editor at Forbes Advisor. She has been a journalist for over 35 years, writing about insurance for consumers for the last decade. Prior to covering insurance, Michelle was a lifestyle reporter at the New York Daily News, a magazine.
| Lead Editor, Insurance
Updated: Jul 24, 2024, 11:17am
Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors' opinions or evaluations.
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Life insurance costs an average of $12 a month ($144 a year) to $14 a month ($162 a year) for a 20-year, $250,000 term life insurance policy for a healthy 30-year-old buyer, based on our analysis.
The same policy costs $16 a month ($197 a year) to $19 a month ($227 a year) for a healthy 40-year-old, and $32 a month ($386 a year) to $40 a month ($485 a year) for a healthy 50-year-old buyer.
We use data-driven methodologies to calculate average life insurance rates. Our editors are committed to bringing you unbiased ratings and information. Our editorial content is not influenced by advertisers. You can read more about our editorial guidelines and the methodology for the life insurance rates below.
Life insurance costs vary significantly based on factors such as gender, age, type of policy, coverage amount and length of coverage.
It’s wise to buy life insurance when you’re younger before rates are increasing significantly for buyers and your policy options decline. With every year that passes, your life insurance quotes will go up, even if you’re in excellent health. By waiting to buy life insurance, you also run the risk that you’ll develop a health condition that will cause an even higher rate when you buy a policy.
Term life insurance allows you to lock in level rates for a set period, such as 10, 20 or 30 years.
We see here how annual term life insurance rates on a 20-year policy for senior buyers age 70 cost over 1,000% more than the same policy purchased by a 30-year-old. Also of note, a term of 30 years is not generally available to those age 60 and above.
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Determining how much life insurance coverage you need is one of the first steps in buying a policy. Your coverage amount, or death benefit needs to be enough to provide funds for anything your family may need after you die.
To find out how much life insurance you may need, enter your annual income, how many years your dependents will need financial support, your debt, future college costs, estimated funeral costs, savings and any current life insurance coverage.
Answer simple questions in our 3 step process
How much annual income would your dependents need?
How long would your dependents need financial support?
Let's calculate your life insurance need
How much debt do you need to pay off?
If you want to help with the cost of college tuition, how much would you like to cover?
How much do you want to add for burial expenses?
Let's calculate your life insurance need
How much savings do you have?
If you already have life insurance, enter the total coverage amount
Get ResultsAmount of life insurance needed
Details that you have entered
How much annual income would your dependents need?
How much debt do you need to pay off?
How long would your dependents need financial support?
If you want to help with the cost of college tuition, how much would you like to cover?
How much do you want to add for burial expenses?
How much savings do you have?
Enter total coverage amount of existing life insurance
Now that you have an estimate of your life insurance need, you can start comparing quotes
Your savings and/or current life insurance total more than your needs. In this case, you may not need life insurance. If you want to exclude your savings or life insurance from the assets your family could spend, please lower the amounts input.
Via Policygenius's Secure Website
FEATURED PARTNER OFFERMaximum no-exam coverage
While medical exams may not be required, certain health information is required as part of the application to determine eligibility for coverage
Term lengths available
10, 15, 20, 25 or 30 years
On Ladder's WebsiteWhile medical exams may not be required, certain health information is required as part of the application to determine eligibility for coverage
10, 15, 20, 25 or 30 years
To find the average cost of life insurance, we collected quotes online and averaged the lowest three or four, depending on availability. All rates are based on healthy non-smoking buyers of average height and weight.
Your own rates will be different depending on your age, health and other factors.
Compare Policies With 8 Leading Insurers
Race, ethnicity, religion, sexual orientation or marital status don’t impact life insurance rates. Your rate won’t be affected by the number of life insurance beneficiaries you choose. It doesn’t matter to the insurance company if you split up your death benefits between one or five individuals. Also, your life insurance quote isn’t impacted if you already have another life insurance policy in place, such as a group life policy from work. Life insurance companies focus on factors that help them determine your life expectancy, such as your age, gender, medical history, if you smoke or if you have a risky occupation or hobbies.
Life insurance companies might perform a soft credit check when you apply to review details of your credit report for anything that may give them pause. For instance, if you have a bankruptcy, this can make you a higher risk and affect your life insurance quotes. Also, some companies use credit scores, or elements of credit reports and other reports, to predict “mortality” life expectancy. They sell this information to life insurance companies. For example, LexisNexis, an analytics company, offers its Risk Classifier score and TransUnion, an information and insights company, has TrueRisk.
There is no perfect age to shop for life insurance, but a good rule of thumb is to buy life insurance as soon as possible when you have a need for it. Buying term life insurance while younger (and healthier) will lock you in at a lower cost for the length of your policy. If you discover you need more life insurance as you age, you can always buy additional coverage or try laddering life insurance.
Term life insurance shoppers should focus on cost when comparing policies. In addition, consider the company’s financial strength ratings, such as ratings from AM Best. Comparing rates is more complicated if you’re buying a permanent life insurance policy such as whole life or universal life insurance. The monthly or yearly premium you’re quoted does not reflect the total “cost” of the policy. High internal policy charges will eat into your cash value, leaving you less money if you want to do a life insurance policy loan or withdrawal. Work with an experienced financial advisor or life insurance agent to understand the true costs of a policy.
Yes, your final life insurance premiums can be higher than the first life insurance quote. Quotes are only an initial estimate of what the insurer thinks it will charge you based on factors like your age, gender, height and weight, and smoking status. Life insurance companies generally require an underwriting process, which may include a medical exam. During the underwriting process, the life insurance company reviews your health history and usually looks at other factors, including your driving record and any dangerous hobbies, such as scuba diving. Once the life insurance company has assessed all the data, it will decide whether to approve you for a policy and how much you will pay.
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Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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Deputy Editor, InsuranceAshlee is an insurance editor, journalist and business professional with an MBA and more than 17 years of hands-on experience in both business and personal finance. She is passionate about empowering others to protect life's most important assets. When Ashlee isn't spreading insurance knowledge or solving television murder mysteries, she enjoys spending time with her family (including the furry and feathery ones) on their farm in Kentucky.
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