How much should you pay for life insurance

This article was reviewed by Andrew Flueckiger, a member of the Finder Editorial Review Board and certified insurance counselor and licensed insurance agent in five states.

Índice Show

Chart: average cost of term life insurance by age
Chart: whole life insurance average cost by age
How much are life insurance rates for seniors?
Compare life insurance rates
What factors affect life insurance rates?
How can I lower my life insurance rates?
How much life insurance do I need?
Bottom line
How much should I get for a life insurance policy?
How much do Singaporeans pay for insurance?
Is it worth it to have a life insurance?

Adjustable term life

Wyshbox

"Wyshbox matches your insurance coverage to your life stage. Plus, you can use its debt-tracking tool to manage how much life insurance you need over time, and automatically increase or decrease your coverage amount."

Simple term life

Bestow

"If you want an easy, no-fuss term life policy that skips the medical exam, Bestow may be a good fit. You can get a quote and apply online in minutes, and rates tend to run below average."

Fully online broker

Ladder

"If you're interested in term life, Ladder offers a simple quote process with an instant decision on approval. Ladder's tool allows you to adjust your coverage amount as your circumstances change."

The average cost of life insurance is $21 a month. This is based on a $500,000 20-year term policy for a healthy non-smoker between 26 and 35 years old. We analyzed data provided by Quotacy to find average monthly costs, but your exact monthly costs depend on your age, overall health, gender and even your lifestyle. To narrow down how much you’ll pay, find your age in the table provided.

Ready for life insurance?

Chart: average cost of term life insurance by age

The average cost of life insurance for a healthy, 30 year old is around $21 a month for a woman and $25 for a man for a $500,000 20-year term policy. If you’re a smoker or suffer from major health conditions, expect to pay significantly higher premiums.

Age	Gender	$250,000 coverage	$500,000 coverage	$1,000,000 coverage
18	Man	$16.74	$26.90	$41.83
18	Woman	$13.78	$20.46	$32.71
19	Man	$16.58	$26.57	$40.95
19	Woman	$13.78	$20.46	$32.71
20	Man	$16.28	$26.24	$39.57
20	Woman	$13.48	$20.31	$29.77
21	Man	$16.12	$25.92	$38.99
21	Woman	$13.49	$20.33	$29.77
22	Man	$15.79	$25.56	$38.99
22	Woman	$13.49	$20.33	$29.77
23	Man	$15.79	$25.25	$38.40
23	Woman	$13.49	$20.33	$29.48
24	Man	$15.63	$24.93	$38.11
24	Woman	$13.49	$20.33	$29.48
25	Man	$15.46	$24.60	$37.53
25	Woman	$13.66	$20.66	$29.77
26	Man	$15.47	$24.60	$38.11
26	Woman	$13.73	$20.77	$30.60
27	Man	$15.58	$24.82	$38.69
27	Woman	$13.79	$20.88	$30.77
28	Man	$15.65	$24.86	$39.26
28	Woman	$13.92	$20.99	$31.45
29	Man	$15.81	$25.21	$40.43
29	Woman	$13.98	$21.21	$31.65
30	Man	$15.98	$25.44	$41.31
30	Woman	$13.98	$21.21	$32.32
31	Man	$16.10	$25.56	$41.77
31	Woman	$14.09	$21.31	$33.91
32	Man	$16.28	$25.69	$42.18
32	Woman	$14.22	$21.52	$34.56
33	Man	$16.38	$26.06	$42.75
33	Woman	$14.32	$21.78	$35.39
34	Man	$16.54	$26.34	$43.62
34	Woman	$14.60	$22.20	$36.72
35	Man	$16.92	$26.98	$43.91
35	Woman	$14.90	$22.64	$37.82
36	Man	$17.56	$28.28	$46.72
36	Woman	$15.57	$24.23	$39.87
37	Man	$18.49	$29.76	$49.64
37	Woman	$16.16	$25.12	$42.75
38	Man	$19.49	$31.71	$53.65
38	Woman	$17.06	$27.12	$45.49
39	Man	$20.44	$33.43	$57.13
39	Woman	$17.89	$29.13	$47.79
40	Man	$21.71	$35.55	$60.92
40	Woman	$19.04	$31.07	$50.81
41	Man	$23.53	$39.25	$67.71
41	Woman	$20.43	$33.50	$55.10
42	Man	$25.40	$42.87	$74.63
42	Woman	$21.63	$35.90	$59.55
43	Man	$27.12	$45.38	$82.26
43	Woman	$23.38	$39.16	$64.21
44	Man	$29.09	$50.21	$89.37
44	Woman	$25.02	$42.25	$69.64
45	Man	$31.02	$54.37	$97.91
45	Woman	$26.43	$45.35	$74.97
46	Man	$33.70	$59.25	$106.88
46	Woman	$28.14	$48.50	$80.70
47	Man	$36.18	$64.31	$116.61
47	Woman	$30.23	$52.82	$88.70
48	Man	$39.41	$70.77	$128.43
48	Woman	$32.70	$57.10	$96.35
49	Man	$42.66	$77.17	$140.42
49	Woman	$34.59	$61.24	$104.76
50	Man	$46.35	$84.33	$152.94
50	Woman	$37.32	$66.28	$113.44
51	Man	$50.16	$92.06	$169.42
51	Woman	$39.91	$71.25	$124.63
52	Man	$54.59	$101.23	$187.00
52	Woman	$43.05	$77.62	$137.77
53	Man	$59.61	$111.72	$206.96
53	Woman	$46.39	$84.61	$150.53
54	Man	$65.17	$122.61	$228.15
54	Woman	$50.37	$92.09	$166.19
55	Man	$72.07	$135.74	$253.02
55	Woman	$54.54	$100.16	$182.08
56	Man	$81.37	$152.40	$281.76
56	Woman	$60.41	$110.29	$201.45
57	Man	$90.88	$171.61	$315.53
57	Woman	$65.93	$121.64	$222.19
58	Man	$101.68	$192.29	$354.64
58	Woman	$73.26	$135.01	$246.39
59	Man	$113.59	$214.61	$395.50
59	Woman	$81.71	$150.27	$274.52
60	Man	$127.79	$242.82	$441.27
60	Woman	$92.12	$167.74	$302.83
61	Man	$145.04	$275.72	$500.24
61	Woman	$101.88	$188.73	$340.71
62	Man	$164.62	$313.88	$566.18
62	Woman	$116.29	$214.58	$379.24
63	Man	$186.50	$356.07	$642.24
63	Woman	$130.51	$241.27	$428.42
64	Man	$212.10	$405.30	$730.72
64	Woman	$144.53	$271.75	$480.51
65	Man	$240.93	$469.30	$830.54
65	Woman	$162.59	$311.40	$537.52
66	Man	$283.08	$534.13	$942.59
66	Woman	$202.22	$379.29	$722.66
67	Man	$321.07	$605.81	$1,121.09
67	Woman	$241.24	$434.79	$824.66
68	Man	$363.50	$661.45	$1,324.35
68	Woman	$280.55	$500.03	$962.14
69	Man	$361.02	$689.82	$1,324.35
69	Woman	$291.58	$573.68	$962.14
70	Man	$407.14	$790.59	$1,519.40
70	Woman	$366.25	$705.39	$1,097.54

Rates are provided by Quotacy and valid as of April 2021 in all states except Montana.

Chart: whole life insurance average cost by age

Expect whole life premiums to cost between $250 to $1,000 a month if you’re young and healthy, and that price increases significantly as you age. Since whole life policies offer lifelong coverage and build cash value, they’re more expensive than term life insurance.

Age	Gender	$250,000 coverage	$500,000 coverage	$1,000,000 coverage
30	Male	$213	$421	$827
30	Female	$189	$374	$733
40	Male	$328	$652	$1,289
40	Female	$264	$523	$1,032
50	Male	$532	$1,057	$2,101
50	Female	$421	$837	$1,661

How much are life insurance rates for seniors?

Those buying life insurance in their 80s can pay over $1,000 a year for a $10,000 or $20,000 final expense or guaranteed issue policy. So you’ll skip the medical exam in exchange for high rates on low coverage.

Most insurers stop offering term life insurance at 75 or 80 years old, and permanent policies stop around age 75. However, each insurer has its own approval guidelines, so you may get approved with one insurer and not another.

Compare life insurance rates

Use this table to compare online quotes in minutes to get the best possible coverage for the lowest rate.

5-min watch: the true cost of life insurance

Watch our quick video covering the breakdown of life insurance costs.

What factors affect life insurance rates?

Life insurers assess how risky you are to insure and assign you a life insurance classification. While you can’t control some risk factors, you can take other steps to lower your rate like quitting smoking. Your insurer will look at:

Your policy

Type of policy. Since term life insurance provides protection for a limited time, it costs six to 10 times less than permanent policies like whole life, based on our analysis of life insurance rates.
Amount of coverage. This refers to the face value of your policy. A $1 million policy will be more expensive than a $250,000 or $500,000 policy.
Term length. If you choose term life, you’ll pay a higher premium for a longer term like 30 years.
Riders. Most insurers charge a fee to add riders to your policy, such as a waiver of premium or accelerated death benefit.

Your health and demographics

Age. The older you are, the lower your life expectancy — which is why insurers reserve their best rates for young applicants.
Gender. Women live longer than men, a fact shown by the CDC’s life expectancy estimates. Insurers charge women lower premiums since there’s less chance they’ll pay the death benefit.
Smoking status. Since smoking is linked to health issues, smokers pay more for life insurance coverage.
Health. Your insurer will consider pre-existing health conditions like high cholesterol or blood pressure, weight and other health markers when setting your premium.
Family medical history. If you have a family history of health conditions like cancer, stroke or heart disease, your insurer may raise your rates.

Your lifestyle

Occupation. If your work puts you in dangerous situations — miners, firefighters, exterminators or roof contractors — you may pay more than someone with an office job.
Activities. Underwriters assess your driving record, alcohol and drug use and your hobbies, awarding the safest applicants with the lowest premiums.

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How can I lower my life insurance rates?

Your overall medical history may be out of your hands, but you can take steps to potentially lower your premium.

Quit smoking. Kicking the habit could cut your premium in half and improve your health.
Cut down on drinking. If you enjoy more than a drink a day, you could cut back on alcohol for lower rates.
Get in shape. Insurers consider weight and exercise habits an important part of your risk. A lower BMI typically leads to cheaper rates.
Consider major life changes. Look at your coverage after changes like becoming a new parent. You can also ladder policies based on debt, like a 30-year term policy for your mortgage and a 15-year policy to get to retirement.
Look for discounts. Talk with your insurer about lowering premiums with a joint policy or other savings opportunities.

How long will I have to pay premiums?

If you have a term life policy, you’ll need to pay premiums for the length of the term to maintain coverage. This could be 1, 5, 10, 15, 20, 25 or 30 years.

With permanent policies like whole life, you’ll have to pay premiums for your entire life — otherwise, you’ll lose coverage. But once you’ve accumulated enough cash value, you can use it to pay your premiums.

How much life insurance do I need?

To find how much coverage you need, think about your financial obligations now and in the future, such as:

Income. How would your family cope without your income if you die? Look for life insurance policies with enough coverage to replace your income until any debts are paid.
Expenses. If you own a mortgage, car loan or credit card, calculate your family’s expenses to maintain their current lifestyle.
Dependents. If your family depends on you financially, consider future needs like college expenses or long-term care for elderly parents.
Assets. Evaluate your investments, savings and retirement accounts to see if your family can live off that money.
End of life expenses. The average funeral costs over $7,000, according to the National Funeral Directors Association. Decide if you have enough cash to help your family cover this expense.

Bottom line

When you apply for life insurance, your insurer will personalize your rates to your age, gender, medical history and lifestyle. To ensure you’re getting the best possible premium, compare life insurance companies.

Katia Iervasi is a staff writer who hails from Australia and now calls New York home. Her writing and analysis has been featured on sites like Forbes, Best Company and Financial Advisor around the world. Armed with a BA in Communication and a journalistic eye for detail, she navigates insurance and finance topics for Finder, so you can splash your cash smartly (and be a pro when the subject pops up at dinner parties).

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How much should I get for a life insurance policy?

Most insurance companies say a reasonable amount for life insurance is six to ten times the amount of annual salary. If you multiply by ten, if your salary is $50,000 per year, you'd opt for $500,000 in coverage.

How much do Singaporeans pay for insurance?

On average, an individual and family in Singapore will need to fork out US$6,265 and US$17,803 for premiums, respectively, according to Pacific Prime's latest Cost of Health Insurance Report 2021-22 (COHI).