What is the Average Life Insurance Cost Per Month 2024
Written by Daniel Ray, Life Insurance Expert |
✅
Fact Checked by
Lisamarie Monaco |
Editorial Disclosure
If you are looking for an average life insurance cost per month, this article is for you!
The average life insurance costs can vary depending on your age, health, and amount of coverage. I recommend getting health protection if affordable, prioritizing safety.
Article Navigation
- Will Life Insurance Rates Go Down in 2024?
- Compare Average Life Insurance Rates
- Term Life Insurance Quotes for Males
- Term Life Insurance Quotes for Females
- What Factors Impact Life Insurance Premiums
- What are Risk Factors that Affect your Life Insurance Premiums
- How Does Risk Factors Impact Whole Life Insurance
- How Does Risk Factors Impact Whole Life Insurance
- Finding The Best Life Insurance Policy For You
- FAQs
- Conclusion
Will Life Insurance Rates Go Down in 2024?
Although most Americans acknowledge that life insurance can protect their family’s financial stability, many still go without it.
The AIG Life Insurance IQ Study reported that 51% of respondents either didn’t know if they had a policy or did not have one at all and only 19% said they were happy with the coverage amount provided by their current plan.
To make sure that you get the best deal on life insurance, it’s important to buy a policy while you’re young and healthy. Premiums are lowest when you’re young, likely never as low again.
Even if this means having health problems or getting older, now is still better than later as prices only go up with time.
You have insurance needs. Whether new or updating a policy, explore available choices to select the best option.
In addition, you may come across Return Of Premium ROP options, this really has no gain as it will cost you about double in price. Above all, by the time you are able to get back ALL your premium and once you factor in inflation, your money will be values less.
It’s best to invest the difference on your own.
What Goes into a Life Insurance Quote
You can visit each individual insurance company to get quotes. Or, you could use brokers or marketplaces to find the right policy for your situation and apply within minutes!
Most people go through this process but it takes up a lot of time and is not that convenient. You can call us if you need life insurance quickly without all the hassle in some cases with our simplified issue policies.
Compare Average Life Insurance Rates
By comparing life insurance quotes, it’s important to compare the different policy types.
For now, we’ll focus on term life insurance because it can be less expensive than whole life and has easily adjustable coverage based on your events in life.
Let’s look at premiums for term policies in three policy increments:
- $250,000
- $500,000
- $1 million
We’ll also compare these increments across different terms lengths (10 years, 20 years, and 30) based on ages 25/35/45/55 & 65 to get a better idea of what you can expect when buying insurance.
Term Life Insurance Quotes for Males
| Age | Death Benefit | 10-year Term Monthly Premium | 20-year Term Monthly Premium | 30-year Term Monthly Premium |
| 25 | $250,000 | $9.75 | $12.26 | $17.72 |
| 25 | $500,000 | $13.64 | $19.11 | $28.68 |
| 25 | $1 million | $20.04 | $30.59 | $48.25 |
| 35 | $250,000 | $9.77 | $13.45 | $21.09 |
| 35 | $500,000 | $14.06 | $21.24 | $35.24 |
| 35 | $1 million | $21.92 | $33.99 | $64.51 |
| 45 | $250,000 | $16.81 | $26.42 | $42.88 |
| 45 | $500,000 | $27.62 | $46.44 | $79.38 |
| 45 | $1 million | $46.81 | $87.87 | $151.21 |
| 55 | $250,000 | $37.48 | $61.26 | $120.71 |
| 55 | $500,000 | $67.57 | $114.74 | $232.23 |
| 55 | $1 million | $123.24 | $221.61 | $457.05 |
| 65 | $250,000 | $101.76 | $199.16 | Custom Quote Only* |
| 65 | $500,000 | $191.29 | $385.08 | Custom Quote Only* |
| 65 | $1 million | $362.69 | $743.72 | Custom Quote Only* |
Customized life insurance policies are available to age 95 for a 30-year term. A full underwriting is required, but the payout will be guaranteed if you die within that time frame.
Term Life Insurance Quotes for Females
| Age | Death Benefit | 10-year Term Monthly Premium | 20-year Term Monthly Premium | 30-year Term Monthly Premium |
| 25 | $250,000 | $8.61 | $10.79 | $14.68 |
| 25 | $500,000 | $11.22 | $15.72 | $22.73 |
| 25 | $1 million | $15.81 | $23.05 | $37.82 |
| 35 | $250,000 | $8.92 | $11.94 | $18.28 |
| 35 | $500,000 | $11.96 | $17.87 | $29.69 |
| 35 | $1 million | $18.92 | $29.91 | $52.15 |
| 45 | $250,000 | $15.15 | $21.33 | $33.51 |
| 45 | $500,000 | $24.22 | $37.41 | $61.32 |
| 45 | $1 million | $38.24 | $67.91 | $116.36 |
| 55 | $250,000 | $28.21 | $45.38 | $91.54 |
| 55 | $500,000 | $50.05 | $84.39 | $176.50 |
| 55 | $1 million | $90.94 | $158.86 | $330.74 |
| 65 | $250,000 | $64.97 | $134.30 | Custom Quote Only* |
| 65 | $500,000 | $122.14 | $257.70 | Custom Quote Only* |
| 65 | $1 million | $223.86 | $485.77 | Custom Quote Only* |
How Do You Read a Term Life Insurance Quote
Men pay more for life insurance than women do. The premium gap widens with age, but they are both significantly higher when purchased later in life or if you have a longer policy term.
Health unpredictability in older ages means companies need more applicant info for quotes.
Life insurance is a great idea for people of any age. You never know what’s going to happen, and it could be very costly without the proper protection in place.
What Factors Impact Life Insurance Premiums
There are many different factors that go into determining life insurance premiums, and age and gender aren’t the only ones.
Health Class
There are a lot of variables when it comes to insurance premiums. You can have relatively minor health conditions, like well-controlled hypertension which results in only a slight increase in your monthly premium.
More serious health conditions, like diabetes or heart disease, and one-time events such as battling cancer cause rates to go up!
For those of you who have had certain health issues in the past, your application may be reviewed on an individual basis for risk factors. You might also be asked to undergo a medical exam as well.
When it comes to these conditions- how long ago they occurred is one factor that will determine if there are any risks involved with insuring you or not.
A past cancer diagnosis impacts premiums less than a recent one; factors like BMI and medications also play a role.
Family History
Don’t let a family history of major illnesses scare you away from life insurance! Everyone experiences health changes as they age, and it’s important to have the financial security that comes with having an active policy.
If one or more immediate relatives suffered any severe conditions before reaching 60 years old (like cancer, heart disease, diabetes), then this may affect your premiums.
But don’t give up hope just yet. Most insurers are concerned about these types of diseases because they could deteriorate over time and interfere with daily activities sooner than expected. Not all companies will treat them equally when pricing policies.
Smoking or Other Tobacco Use
Being a smoker has an enormous impact on life insurance premiums.
For instance, in our comparison between nonsmokers and smokers of the same sex with $500,000 term policies across multiple companies for 20 years each one is shown below:
| Age at Policy Purchase | Male Nonsmoker | Male Smoker | Female Nonsmoker | Female Smoker |
| 25 | $19.11 | $53.33 | $15.72 | $34.58 |
| 35 | $21.24 | $84.14 | $17.87 | $68.33 |
| 45 | $46.44 | $205.27 | $37.41 | $150.44 |
| 55 | $114.74 | $471.74 | $84.39 | $333.19 |
| 65 | $385.08 | $1131.34 | $257.70 | $844.89 |
Smokers pay more for their life insurance than non-smokers, and the premiums become even higher as smokers get older. Let’s say a man smokes at age 25; his premium will be three times that of someone who doesn’t smoke!
It’s nearly four times greater when he is 35 years old, then continues to rise steadily with each additional year.
Although smokers pay more than $750 per year for the same amount of life insurance coverage, they still enjoy the privilege of paying less each month.
Life insurers often treat occasional smoking, cigars, tobacco chewing, and e-cigarette use like regular smoking.
According to research by the Centers for Disease Control (CDC), smoking cigarettes or vaping reduces life expectancy and quadruples cardiovascular disease risk.
- Coronary heart disease leading 2x – 4x
- Increase in stroke at 3x higher rate than non-smokers.
- Lung cancer has 25x more chance developing into men’s health conditions while women are also equally elevated risks compared with no incidents whatsoever but even lower chances yet it still exists that can develop…
- Chronic obstructive pulmonary diseases such as COPD increasing 12x – 13x likelihood of contracting a serious respiratory condition that causes shortness of breath.
Lifestyle Behavior
Attempts to hide alcohol and drug habits often fail, as they’re likely to appear in background checks or blood tests.
DUIs/DWIs and alcohol-related arrests suggest excessive drinking, leading to higher insurance premiums and potential early death.
Livelihood or Occupation
The most hazardous occupations in the United States are logging, fishing and trapping, aircraft pilots/flight engineers (excluding helicopters), roofers. Bureau of Labor Statistics data (2008-2012) shows 10 occupation groups with above-average fatal injury rates.
There are many occupations that have a high risk of death. Life insurance premiums adjust for higher risks in certain occupational classifications.
What are Risk Factors that Affect your Life Insurance Premiums
Want to save on your life insurance? Avoid these high-risk activities. High-risk hobbies like skydiving and racing can increase policy costs compared to safer pastimes. Other examples include deep-sea diving, backcountry skiing, and rock climbing–and many others!
Multiple violations or at-fault accidents, especially with DUI/DWI, lead to higher premiums.
If you have poor credit, life insurance companies are more likely to charge higher rates of mortality. This could be the result of financial stress impacting your behavior and health.
Your criminal record can impact your premium. The age and nature of an incident significantly influence its impact on premiums.
A 25-year-old conviction may not affect rates, but a 5-year-old one could impact current insurance calculations.
How Does Risk Factors Impact Whole Life Insurance
Whole life insurance and term life have different features.
- Whole life is the only type of insurance where you get permanent coverage.
Keep up with premiums to ensure lifetime coverage, unless voided by non-payment or contract breaches.
- Whole life insurance is a great way to invest in something that has value and can grow. Instead of paying premiums, you pay part of your premium into the cash value which accumulates interest over time. Withdraw from this account via loans or dividends penalty-free, as needed.
- Life insurance premiums can be paid annually, quarterly, or monthly. Paying yearly premiums keeps them constant for life, unlike term policies that adjust upon renewal.
- The cost of whole life insurance can be 10 to 15 times higher than that for term. The difference between the two premiums is how much each goes into your cash value, according to research by us.
The quotes below are samples of whole life insurance rates from PinnacleQuote for a male and female at different ages. The first quote reflects an average policy; the second varies by age and gender.
Women often pay less than men for equal-value policies due to their longer lifespan, affecting coverage and premiums.
Whole Life Insurance Monthly Rates
| Gender/Age | $250,000 | $500,000 | $1,000,000 |
| Male Age 30 | $258.63 | $510.66 | $1,014.72 |
| Female Age 30 | $227.07 | $447.54 | $888.47 |
| Male Age 40 | $374.10 | $741.60 | $1,476.59 |
| Female Age 40 | $324.60 | $642.60 | $1,278.60 |
| Male Age 50 | $567.39 | $1,128.19 | $2,249.77 |
| Female Age 50 | $483.52 | $960.43 | $1,914.27 |
Agents often promote the cash value feature of whole life insurance as a way to earn guaranteed interest. It’s best to look at it from a death benefit perspective and treat the cash value as an added perk.
Some of your premium is going towards commissions and fees — especially in the first few years of policy acquisition.
Also, you might want to check out our article on Single Premium Whole Life.
How Does Risk Factors Impact Whole Life Insurance
To get the most accurate life insurance quote, be sure to provide all of your health information. This includes details about hobbies and family history in addition to occupation and smoking status.
For varied health conditions and activities, find the best company to insure your life. Some companies offer flexible, tailored policies for clients over 50.
Term life insurance is a more affordable option that can help you with young children. It’s useful when on a tight budget but needing more coverage due to having young children at home.
For an accurate estimate, get personalized quotes from various insurers, considering your age, health, lifestyle, and coverage needs.
You need to choose a life insurance policy and then pay the first premium installment upfront. After applying, your policy starts on the application date but requires insurer approval.
Finding The Best Life Insurance Policy For You
Life insurance is a valuable financial tool that you can use for different purposes depending on your needs.
Some types of life insurance are more expensive than others. Term life tends to be the cheapest. It only covers an agreed amount of time and doesn’t have additional features like flexible premiums or cash value accumulations.
Some choose non-term policies for extra options like self-investing or loan security against permanent plans’ cash values. Shop around for maximum coverage at minimal cost; call us to compare different insurance premiums.
FAQs
The cost is influenced by age, health, lifestyle (including smoking status), the type of policy (term or whole life), coverage amount, and gender. Each of these factors can significantly impact the premium.
For a healthy individual in their 30s, term life insurance can range from $15 to $30 per month for a $500,000 policy over a 20-year term. However, rates vary widely depending on individual circumstances.
Whole life insurance is generally more expensive, often costing several hundred dollars per month for similar coverage amounts. The exact difference depends on policy specifics and individual factors.
Yes, life insurance premiums typically increase with age. Older individuals, especially those over 50, can expect to pay higher rates.
Smokers may pay two to three times more for life insurance compared to non-smokers due to the increased health risks associated with smoking.
Generally, men tend to pay slightly more for life insurance than women, owing to a shorter average life expectancy.
Term life insurance is usually the cheapest option, providing coverage for a specific period without any cash value accumulation.
Yes, certain health conditions can lead to higher premiums. Insurers consider the severity and management of the condition when determining rates.
No, rates can vary significantly between different insurance companies. It’s important to shop around and compare quotes.
To get an accurate estimate, you should obtain personalized quotes from multiple insurance providers, taking into consideration your age, health, lifestyle, and the type and amount of coverage you need.
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Conclusion
We all know the importance of life insurance, but how much is it costing us? The answer to this question may be surprising. Life insurance can be costly, especially for those on fixed incomes or saving monthly.
Still, there are options out there that could help you get everything you need without breaking your budget every month.
If you would like more information about what type of coverage makes sense given your financial situation, please call our team at 855-380-3300. Our experts offer one-on-one discussions for a tailored plan, with a no-pressure promise.
