Copyright benzinga
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. AgeGenderHealthDuration of coverageType 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. 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. 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. 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. 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
