The listings featured on this site are from companies from which this site receives compensation. This influences where, how and in what order such listings appear on this site. Advertising Disclaimer
Life insurance rates are determined based on a variety of factors that insurers consider when assessing risk. Here are the key factors categorized into different aspects:
Personal and Health Factors
- Age: Younger individuals typically pay lower premiums as they are considered lower risk.
- Gender: Statistically, women live longer than men, often resulting in lower premiums for women.
- Health Condition: Current health status, medical history, and any pre-existing conditions significantly influence rates. Healthier individuals receive better rates.
- Lifestyle: Habits such as smoking, drinking, and drug use increase premiums due to associated health risks.
- Family Medical History: A family history of serious illnesses like cancer or heart disease can raise premiums.
Policy-Specific Factors
- Coverage Amount: Higher coverage amounts lead to higher premiums as the insurer’s potential payout increases.
- Policy Term: Longer terms generally have higher premiums compared to shorter terms.
- Type of Policy: Whole life insurance is usually more expensive than term life insurance due to its lifelong coverage and cash value component.
Occupational and Lifestyle Factors
- Occupation: Jobs with higher risks (e.g., construction, mining) can lead to higher premiums.
- Hobbies: High-risk hobbies (e.g., skydiving, scuba diving) can also increase premiums.
Additional Underwriting Factors
- Driving Record: A history of traffic violations or accidents can affect rates due to the perceived higher risk of premature death.
- Credit History: Some insurers consider credit scores as part of their risk assessment, with poor credit potentially leading to higher premiums.
Policy Add-Ons and Riders
- Riders: Adding riders, such as accidental death benefit or critical illness rider, increases the overall premium.
- Policy Features: Customizing a policy with additional features and benefits can raise the premium cost.
Insurers use these factors to calculate a risk profile for each applicant, which then determines the premium rates. This risk assessment process is known as underwriting.
Average Life Insurance Policy Premiums by Age, Coverage Amount, and Policy Term
The following charts outline rough estimates for what a healthy individual should expect to pay per month for a term life insurance policy*.
Expected monthly premiums for a 20-year, $100,000 term life policy by age and gender
Here is the detailed table showing the average expected monthly premiums for a 20-year, $100,000 term life policy by age and gender.
| Age | Male Premium ($) | Female Premium ($) |
|---|---|---|
| 18 | 10 | 10 |
| 19 | 10 | 10 |
| 20 | 15 | 15 |
| 21 | 15 | 15 |
| 22 | 15 | 15 |
| 23 | 15 | 15 |
| 24 | 15 | 15 |
| 25 | 15 | 15 |
| 26 | 15 | 15 |
| 27 | 15 | 15 |
| 28 | 15 | 15 |
| 29 | 15 | 15 |
| 30 | 15 | 15 |
| 31 | 15 | 15 |
| 32 | 15 | 15 |
| 33 | 15 | 15 |
| 34 | 15 | 15 |
| 35 | 20 | 20 |
| 36 | 20 | 20 |
| 37 | 20 | 20 |
| 38 | 20 | 20 |
| 39 | 20 | 20 |
| 40 | 25 | 20 |
| 41 | 25 | 20 |
| 42 | 25 | 20 |
| 43 | 25 | 20 |
| 44 | 25 | 20 |
| 45 | 30 | 25 |
| 46 | 30 | 25 |
| 47 | 30 | 25 |
| 48 | 30 | 25 |
| 49 | 30 | 25 |
| 50 | 40 | 30 |
| 51 | 40 | 30 |
| 52 | 40 | 30 |
| 53 | 40 | 30 |
| 54 | 40 | 30 |
| 55 | 50 | 40 |
| 56 | 50 | 40 |
| 57 | 50 | 40 |
| 58 | 50 | 40 |
| 59 | 50 | 40 |
| 60 | 70 | 55 |
| 61 | 70 | 55 |
| 62 | 70 | 55 |
| 63 | 70 | 55 |
| 64 | 70 | 55 |
| 65 | 110 | 90 |
Expected monthly premiums for a 20-year, $500,000 term life policy by age and gender
Here is the detailed table showing the average expected monthly premiums for a 20-year, $500,000 term life policy by age and gender.
| Age | Male Premium (per month) | Female Premium (per month) |
|---|---|---|
| 18 | $30 | $20 |
| 19 | $30 | $20 |
| 20 | $30 | $20 |
| 21 | $30 | $20 |
| 22 | $30 | $20 |
| 23 | $30 | $20 |
| 24 | $30 | $20 |
| 25 | $30 | $20 |
| 26 | $30 | $20 |
| 27 | $30 | $20 |
| 28 | $30 | $20 |
| 29 | $30 | $20 |
| 30 | $30 | $20 |
| 31 | $30 | $20 |
| 32 | $30 | $20 |
| 33 | $30 | $20 |
| 34 | $30 | $20 |
| 35 | $30 | $20 |
| 36 | $30 | $30 |
| 37 | $30 | $30 |
| 38 | $40 | $30 |
| 39 | $40 | $30 |
| 40 | $40 | $30 |
| 41 | $40 | $40 |
| 42 | $50 | $40 |
| 43 | $50 | $40 |
| 44 | $60 | $40 |
| 45 | $60 | $50 |
| 46 | $70 | $50 |
| 47 | $70 | $60 |
| 48 | $80 | $60 |
| 49 | $90 | $70 |
| 50 | $90 | $70 |
| 51 | $100 | $80 |
| 52 | $120 | $90 |
| 53 | $130 | $90 |
| 54 | $140 | $100 |
| 55 | $150 | $110 |
| 56 | $150 | $110 |
| 57 | $150 | $110 |
| 58 | $150 | $110 |
| 59 | $150 | $110 |
| 60 | $150 | $110 |
| 61 | $170 | $120 |
| 62 | $190 | $140 |
| 63 | $210 | $150 |
| 64 | $230 | $170 |
| 65 | $250 | $180 |