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Average Cost of Life Insurance (2017)

ValuePenguin recently took an in-depth demeanour during a normal cost of life word opposite a series of opposite process durations. The largest conversion cause on life word prices are a health of a particular being insured. Factors such as either or not your smoke, and what your height/weight are go a prolonged approach towards final your annual word premiums. Individuals that fume can compensate 3-4x a volume that healthier, non-smokers will have to compensate in premiums. Of course, life insurers will demeanour during many other factors besides health (such as your function and age) though factors common in pricing other word products, like state of residence, won’t be a contributing factor.

Average Cost of Term Life Insurance by Age

Looking during a 20 year tenure process (the many renouned option) value $250,000, we’ve dynamic what a normal annual cost is for people between 25 and 65. One of a transparent takeaways from a table: it’s costly to smoke! Smokers on normal will compensate adult to 200% some-more for their life word policies than non-smokers. This inconsistency grows with age with 25 year aged smokers profitable twice as many for their word while 65 year aged smokers compensate roughly 3x as much.

Average Cost of Life Insurance By Term

Below you’ll find a normal cost of life word damaged out by series of years on a policy. Unsurprisingly so, a longer a process tenure a some-more costly it is. Average process costs operation from $568 per year for a 10 year tenure process to $1,528 for a 30 year tenure policy.

Term Life Insurance Policy Costs

Term life word rates are typically a cheapest approach for an particular to squeeze life word coverage. They’re significantly cheaper than insuring with a whole life process and still yield some flexibility. Our charts next fact 10, 20, and 30 year tenure life policies so we can see a normal cost of each. As you’ll see, fewer process coverage years proportion to a cheaper monthly (or annual) premium. 

Life Insurance Rates: 10 Year Term

Here we relapse 10 year tenure life word policies and uncover we a normal annual premiums depending on your turn of health and a volume of coverage you’re meddlesome in purchasing. Ten year policies are renouned for those people who are on a really parsimonious check as they offer some of a cheapest rates on a market, or those who won’t need word after their 10 years of coverage expires. If we need a sign on what any ‘Rate Class’ entails we can click here and see a outline during a bottom of a page. 

Life Insurance Rates: 20 Year Term

The many renouned tenure life word choice on a market, a 20 year tenure process provides longer coverage than a shorter-term 10 year counterpart. These policies are customarily endorsed for immature families who mostly have vast debts and expenses, like mortgages and propagandize loans, that would turn intensely fatiguing if a breadwinner of a family happened to die unexpectedly. Twenty years is typically prolonged adequate for a family to almost compensate down these debts and revoke a intensity risk of someone else carrying to feet a check should something happen. Take a demeanour during a normal rates by Rate Class below:

Life Insurance Rates: 30 Year Term

Looking for a longer tenure life word policy? Thirty year tenure policies will yield we some-more coherence though come during a many aloft price. However, one of a advantages to a longer policy, such as a 30 year term, is that your premiums sojourn unvaried even if your health changes over a time period. So if you’re underwritten as a healthy 25 year aged and find yourself overweight and out of figure during 50, fear not! Your rates will have been sealed in formed on your earthy health when we purchased a policy. You can see next how many pricier 30 year policies are than your shorter tenure process options:

Life Insurance Market Size

The life word marketplace has grown by around 30% over a final 10 years. Interestingly, a marketplace grew about 28% between 2003 and 2008 before timorous after a retrogression in ’08-’09. Since afterwards it’s grown usually and only surpassed it’s 2008 marketplace distance in 2012. Check out a graph next to see how a marketplace has fluctuated in a final decade. All numbers in billions.


*Data from a 2012 NAIC Study


Data from this investigate was sourced from TIAA-CREF. Average life word total were distributed by looking during 4 process amounts ($100k, $250k, $500k, and $1 million) opposite 4 Rate Classes. The formula were averaged to give us a series in a initial table. Here’s a relapse concerning rate classes:

Preferred Plus policies assume no tobacco use in 5 years, no critical medical issues, cholesterol levels next 210, and blood vigour that doesn’t surpass 135/85.

Preferred policies assume no tobacco use in 3 years, above normal health, no critical medical issues, cholesterol levels next 250, and blood vigour that doesn’t surpass 135/85.

Select policies assume no tobacco use in 12 months, good health, blood vigour next 140/90, cholesterol next 300.

Standard policies assume tobacco use in a past year, good health, cholesterol next 300, and blood vigour readings next 140/90.

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