Life Insurance Rates by Age

The post Life Insurance Rates by Age by Benzinga Contributors appeared first on Benzinga. Visit Benzinga to get more great content like this.

Why Age Defines the Price of Protection

When it comes to life insurance, age isn’t just a number — it’s the foundation of how insurers calculate risk. The younger and healthier you are, the lower your rates. As you age, the cost of coverage increases because the statistical likelihood of health issues or mortality rises.

Yet most people don’t realize just how significant those differences can be. A 30-year-old might pay less than half what a 50-year-old pays for the same policy. Understanding how life insurance rates evolve by age helps you plan smarter, purchase earlier, and secure the right level of protection without overpaying.

This guide breaks down life insurance rates by decade, explores why premiums change, and offers practical advice for locking in the most value at every stage of life.

Understanding Life Insurance Rates

Many factors determine life insurance rates.

• Age
• Gender
• Health
• Duration of coverage
• Type of coverage (term vs. whole)

The younger you are, the lower the premiums. But with term life insurance, you’ll only have coverage for up to 30 years, which means it might not cover you until retirement age. The healthier you are, the lower the cost of your insurance will be.

Additionally, women tend to pay less for life insurance because they have a longer life expectancy than men. Men also often have more dangerous jobs and lifestyles, making them more expensive to insure.

Term life insurance is less expensive than whole life insurance because once you reach the end of the term, the coverage terminates unless you select an extension option if your insurance company is willing to allow you to extend it. The longer the term for your life insurance, the more expensive it might be.

While whole life insurance costs more than term life insurance, it is a form of permanent life insurance, meaning it will mature and provide coverage until you die because a part of the premium goes toward the policy’s cash value. You can even take from the cash value before you die if you need to. So while you’re paying more for the coverage, you’re also getting more reward in the long term since you’re building your cash value along the way.

Term Life and Whole Insurance Quotes 

Get an idea of how much life insurance will cost you based on your age. To get these calculations, Benzinga used a generally healthy person at the very start of that decade. So if you’re 25, you’ll pay more than what’s quoted for a 20-year-old since you’ll be 5 years older. The value of this sample term life insurance is $250,000 since that is the most common value that people seek. The term is set at 30 years and is for non-smokers.

For 20-Year-Olds

On average, term life insurance costs $25 per month for a 20-year-old for $250,000 coverage over 30 years. Whole life insurance averages $100 per month for $100,000 in coverage. Here’s a look at top providers and rates.

For 30-Year-Olds

On average, term life insurance costs $30 per month for a 30-year-old for $250,000 coverage over 30 years. Whole life insurance averages $150 per month for $100,000 in coverage. Here’s a look at top providers and rates.

For 40-Year-Olds

On average, term life insurance costs $40 per month for a 40-year-old for $250,000 coverage over 30 years. Whole life insurance averages $180 per month for $100,000 in coverage. Here’s a look at top providers and rates.

For 50-Year-Olds 

On average, term life insurance costs $75 per month for a 50-year-old for $250,000 coverage over 30 years. Whole life insurance averages $240 per month for $100,000 in coverage. Here’s a look at top providers and rates.

Factors That Affect Life Insurance Rates

As you try to make sense of life insurance rates, here’s a look at the leading factors that determine the cost of life insurance.

Gender

Men are more expensive to cover than women because they have a shorter life expectancy and often work in riskier jobs and have higher-risk hobbies.

Health 

The healthier you are, the less you’ll pay for life insurance because you are considered lower risk. Existing health conditions, such as high blood pressure, diabetes or heart conditions could make your insurance cost more.

Tobacco Use

People who use tobacco products or have in the recent past will pay more for their health insurance. That’s because tobacco use is connected to a three-times-higher mortality rate compared to those who never used tobacco, according to the Centers for Disease Control and Prevention (CDC).

Occupation 

Your occupation can make you more risky to cover. For example, construction workers face higher risks than people with desk jobs.

Hobbies

If you skydive or downhill ski, you could pay more for your life insurance. If you participate in risky hobbies, a life insurance company will view you at a higher risk of drawing on your coverage.

Coverage Amount 

The more life insurance you have, the more it will cost. You should calculate how much it would cost for your family to carry on without your income. When calculating, look at whether you could use those funds to pay off your mortgage so that your family could stay in the home. Income replacement for several years could help your family adjust to their new normal.

The most common value of term life insurance is $250,000 as families find that is enough to pay expenses for several years while working on lowering expenses, paying off debt or increasing income to accommodate the change. 

Financial History

Individuals who have filed for bankruptcy recently might see higher rates. Overall, the better your credit score, the lower your monthly premiums will likely be.

Criminal History  

If you have a felony on your record, you might face policy denials or higher rates because you are seen as riskier to cover.

How to Lower Your Insurance Rate

If you’re looking for ways to make your life insurance more affordable, consider these tactics. But don’t wait too long to try for lower rates because age is a major factor and the longer you wait the older you’ll be when you seek coverage.

Maintain a Good Credit Score

Good credit shows that you are a responsible individual. The insurance company will know that you are likely to pay your premiums on time and maintain your policy for its full term, which is advantageous to the company.

Bundle Your Insurance Policies

When you purchase your insurance products from one company, you’ll get better rates. Insurance companies like to know they have your business for everything and provide promotions and discounts for you doing so.

Drive Safely and Avoid Accidents

Life insurance companies review your driving history when setting rates. If you drive recklessly, you’re more at risk of dying in an accident, which means the insurance company is more likely to have to pay out on your policy. Practicing safe driving will also lower your auto insurance rates so you’ll win on all fronts.

Take Advantage of Discounts 

The best discounts come from bundling policies. But you might also find promotions with certain companies when you meet certain life events, such as when you buy a home or welcome a baby. Securing insurance during those times is wise anyway so get your better rates too.

Apply Early 

The younger you are when you apply, the lower your rates will be. Consider seeking life insurance once you have a stable income to pay for the policy.

Live a Healthy Lifestyle

Spend time working on your health, such as losing weight and reducing maintenance drugs you have to take for your well-being. By keeping cholesterol, blood sugar and blood pressure in check, you can pay less for life insurance.

Compare the Best Term Life Insurance From Benzinga’s Top Providers

As you seek outstanding life insurance options, take a look at these top providers to get quotes based on your unique circumstances for a more complete picture of what it will cost.

Types of plans

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Overall Rating

Read Review

get a quote securely through Wysh Life Insurance’s website

More Details

Age Requirements

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1 Minute Review

Wysh is an online term life insurance provider offering flexible policy options available without a medical exam, just a few health questions. The company specializes in helping new policyholders choose a personalized policy fit. Wysh’s customer service team also helps policyholders’ beneficiaries communicate with creditors if their loved one dies. 

Simple, straightforward and budget-friendly, Wysh is a strong option for entry-level life insurance applicants. Most users will also be able to apply in less than 10 minutes, making it a great choice for anyone in need of fast coverage. 

Best For

• Term life insurance shoppers
• Anyone who doesn’t know what death benefits to choose
• Younger life insurance applicants

Pros

• Flexible term policies with death benefits up to $2.5 million
• No medical exam necessary to apply
• Enhanced customers service to help loved ones manage policy if policyholder dies
• Customer service team available through multiple channels

Cons

• Policies not available to those over age 50

Types of plans

Term

Overall Rating

Read Review

get started securely through Ladder’s website

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Disclosure: Ladder Insurance Services, LLC (CA license # OK22568; AR license # 3000140372) distributes term life insurance products issued by multiple insurers – for further details see ladderlife.com. All insurance products are governed by the terms set forth in the applicable insurance policy. Each insurer has financial responsibility for its own products. Coverage amounts vary by state.

Age Requirements

20 – 60

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1 Minute Review

Ladder offers policies with no hidden fees, on-the-spot underwriting and a streamlined website. Coverage ranges from $100,000 to $8 million and you can adjust your coverage over time as needs change.

You can choose a 10, 15, 20, 25, or 30-year term. Ladder also offers up to $3 million in coverage without a medical exam — just answer a few health questions and complete the application to get an instant decision.

Ladder doesn’t impose policy, cancellation or processing fees and you can cancel at any time. Take three steps to get Ladder insurance:

1. You can apply for life insurance coverage with Ladder right now via the online application.
2. Find out whether you’re instantly approved.
3. Accept your offer — including affordable prices and no hidden fees.

Its price lock guarantee ensures your premium won’t increase as your health changes and you age. You can receive a refund within the 1st 30 days if you’re unhappy with your coverage and you can cancel at any time.

 

Best For

• Term life insurance
• Online application
• Policyholders between 20 to 60 years of age

Pros

• Up to $8 million in coverage
• Price lock guarantee
• No policy fees
• 30-day money-back guarantee
• Adjustable coverage

Cons

• No policy riders
• Term life insurance only

Types of plans

N/A

Overall Rating

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get started

More Details

Disclosure: Haven Term is a Term Life Insurance Policy (ICC21 Haven Term in certain states, including NC) issued by C.M. Life Insurance Company (C.M. Life), Enfield, CT 06082. In New York (DTC-NY) and California (DTC-CA), it is issued by Massachusetts Mutual Life Insurance Company (MassMutual), Springfield, MA 01111-0001.

Age Requirements

20 – 64

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1 Minute Review

Haven Life is an innovative life insurance agency that offers a simple way to obtain term life insurance for those between the ages of 18 and 64. You can choose a term length of 10, 15, 20 or 30-years. What’s unique about this term life insurance is the way you can complete an application online and, if approved, digitally purchase coverage.

Haven Life is backed and wholly owned by Massachusetts Mutual Life Insurance Company, a trusted A++ business. You’ll get a user-friendly experience from Haven Life and enjoy MassMutual’s financial strength. Haven Life focuses on personable customer service (it has a rating of 4.8 out of 5 stars) and convenient modern technology.

Best For

• Those looking for a digital buying experience
• Relatively healthy individuals with no preexisting conditions
• Individuals under the age of 64
• Those looking for affordable premiums with robust coverage and additional benefits

Pros

• Simple application process
• Instant decision on coverage. If approved, it can start immediately
• May not need a medical exam
• Competitive rates, more affordable than industry averages
• Excellent customer support

Cons

• No permanent life plans offered
• Higher rates for preexisting conditions
• No coverage if you’re over 65

Types of plans

Term

Overall Rating

Read Review

get started securely through Fabric Life Insurance’s website

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Age Requirements

21 – 60

N/A

1 Minute Review

Fabric offers term life insurance, free digital will creation and other tools to help you better your family’s financial life. They’re the one stop shop for young families looking for financial security.

Fabric offers 10, 15, 20, 25 and 30 year term options and coverage ranging from $100,000 to $5 million.

Fabric offers highly reviewed online customer service through its app and website and has the highest TrustPilot rating in its class.

Best For

• No exam required for most
• Those who want to avoid the hassle of insurance salesmen
• New or expecting parents looking for a broader suite of financial tools

Pros

• Affordable premiums
• Free digital will creation
• Free app with helpful tools for parents
• Apply and see your rate in less than 10 minutes

Cons

• No term life coverage in New York or Montana
• Can’t increase coverage after purchasing

Types of plans

Term

Overall Rating

Read Review

Get started securely through Bestow Life Insurance’s website

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Disclosure: *excludes New York

Age Requirements

18-59

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1 Minute Review

Bestow offers 2 kinds of life insurance policies: 20-year level term policy or a 10-year level term policy.

Through its policies, you may qualify for up to $1 million in term life insurance. That may seem like a sizeable sum, but if you have a spouse and children, you have to consider the cost of things beyond your mortgage, such as daycare and eventually college, as well as the loss of wages over time.

Bestow uses its proprietary technology to underwrite your insurance policy, so the application process is much faster than with traditional life insurance companies. They’re also backed by Munich Re and North American Company for Life and Health Insurance, 2 A+ rated insurance companies.

Best For

• People who are looking for short-term life insurance
• Individuals who don’t want to go through the hassle of having a medical exam or blood work done to get coverage

Pros

• Plans start at just $8/month
• Decent coverage options if you need insurance quickly and without hassle

Cons

• Offers 2 types of plans; does not offer whole or universal life insurance policies
• The 10- and 20-year plans not available to users under 21 or older than 55

Types of plans

Term

Overall Rating

Read Review

securely through Sproutt Life Insurance’s website

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Age Requirements

25-55

N/A

1 Minute Review

One of most quickly growing life insurance platforms, Sproutt leverages insurtech to provide its Sproutt Instant approval life insurance. Get instant-issue policies in under 15 minutes from application to coverage. No medical exam necessary for qualifying applications.

This process is entirely online. You have the option to speak to an experienced Sproutt advisor for assistance or complete your coverage purchase on your own. It works with top-rated life insurance carriers like AIG, SBLI, Principal and Sagicor Life. 

The company has also developed its Guided Artificial Intelligence Assessment (GAIA) platform to power the Quality of Life Index. The platform evaluates your lifestyle to offer personalized recommendations to help you live a healthier lifestyle.

Best For

• Numerous policy and carrier options
• Those who prefer no-exam life insurance
• Young parents

Pros

• Works with top-rated life insurance carriers
• Online process
• Diverse policy options
• An AI-based assessment delivers perks to those with healthy lifestyles

Cons

• Not best for unhealthy people on a budget

Provide for Your Family Even When You’re Gone

The loss of an individual who earns money in a household can be devastating. And adjusting to the new normal takes time. Having life insurance can help families sustain their lifestyle even after losing an earner and pay for major expenses like the mortgage. Life insurance also helps pay final expenses, such as medical costs and burial. While it’s not something most people want to think about, planning can help families carry on in worst-case scenarios.

Frequently Asked Questions 

The post Life Insurance Rates by Age by Benzinga Contributors appeared first on Benzinga. Visit Benzinga to get more great content like this.