Life Insurance Rates by Age

Lock in your lowest life insurance rate

Purchasing life insurance early usually guarantees the best term life insurance rates. The average cost of life insurance can increase by $81,000 on average for every year you delay. However, the moment you sign up for your policy, your rate is locked in and will not change for the duration of the policy.

For example, a healthy 40-year-old nonsmoker could purchase a 20-year policy with $1 million in coverage for $1,172 per year.* However, if he were to purchase the same policy at age 41, the cost would rise to $1,340 per year—and he would spend $1,508 annually if he waited an additional year.

Average Term Life Insurance Rates by Age

As you get older, the average cost of term life insurance increases. Based on our policies, we have developed a term life insurance rate chart that shows the change in premium rates based on different age groups. The term life insurance cost quotes shown represent a 10-year term life insurance policy with a death benefit of $1 million for applicants in good health.

In this scenario, the monthly cost of term life insurance for a 35-year-old non-smoker would be $$65. A 45-year-old non-smoker would pay a monthly premium of $$135 for the same policy.* By purchasing this policy at age 35 instead of age 45, you could save $$840 per year over the life of your policy.

If you wait until later in life, you should understand that term life insurance rates for seniors are significantly higher. However, term life insurance rates tend to be more affordable than permanent life insurance rates for seniors because they provide coverage for a specific period of time and do not include a cash value component.

Why Term Life Insurance Rates Are Lower for Younger People

Life insurance tends to be cheaper for younger individuals due to several key factors. First, younger individuals are generally healthier and have a lower risk profile. Since insurers assess risk when determining premiums, lower risks for younger individuals result in lower term life insurance rates.

While you might think this is a form of ageism, it’s actually more of a statistical issue. Insurance companies use actuarial tables and statistical models to estimate the likelihood of policyholders dying during a given period. These tables consistently show that mortality rates are lower for younger age groups, which is why they offer lower premiums to this demographic.

How to Get the Best Term Life Insurance Rates

You’ve seen that term life insurance rates can vary dramatically as you get older. While your age is something you can’t change, there are a few other factors that can help you lower the cost of your term life insurance.

Maintain good health: Your health is an important factor in determining life insurance rates. Individuals in good health generally qualify for lower premiums. If you have existing health problems, work to improve them before applying for coverage.

Choose the right coverage amount and term: Choosing a coverage amount that accurately reflects your needs and opting for an appropriate term can help you avoid paying more for unnecessary coverage.

Stop smoking: Smoking is a big risk factor for insurance companies, and smokers generally pay higher premiums. If you quit smoking, you may be eligible for lower rates after a certain amount of time without smoking.