Lock in your lowest life insurance rate

Purchasing life insurance early typically sets you up for your best term insurance rates. The average life insurance cost can increase by 8%, on average, for each year you delay. However, the moment you sign your policy, your rate is locked in and won’t change during the policy’s term. 

For example, a 40-year-old non-smoking male in good health could get a new, 20-year term policy with $1 million coverage for $2,172 a year.* However, if he were to purchase the same policy at age 41, his cost would rise to $2,340 a year—and he’d spend $2,508 annually if he waited another year.

Average term life insurance rates by age

As you age, your average term life insurance costs increase. Based on our policies, we developed a term life insurance rates chart that shows the shift in premiums 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 term life insurance cost for a 35-year-old non-smoker would be $65. A 45-year-old non-smoker would pay a $135 monthly premium for the same policy.* By purchasing this policy at age 35 instead of 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. Still, term life insurance rates tend to be more affordable than permanent life insurance for seniors because it provides coverage for a specified period, and it doesn’t include a cash value component.

Why term life insurance rates are lower for younger people

Life insurance tends to be less expensive for younger individuals due to several key factors. First, younger individuals are generally healthier and have a lower risk profile. Since insurance companies assess risk when determining premiums, the lower risks for younger individuals translates to lower term life insurance rates.

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

How to get the best term life insurance rates

You’ve seen that life insurance rates by age can be dramatically different as you get older. Though your age is not something you can alter, there are some other factors that can help you lower your term life insurance cost.

Maintain good health: Your health is a significant factor in determining life insurance rates. Individuals in good health typically qualify for lower premiums. If you have any existing health issues, work on improving them before applying for coverage.

Choose the right coverage amount and term length: Choosing a coverage amount that accurately reflects your needs and opting for a suitable term length can help you avoid overpaying for unnecessary coverage.

Quit smoking: Smoking is a major 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 period of being smoke-free.