What Does Term Life Insurance Cost? (Updated for 2023)
While your risk or rate class has a large impact on your rates, it’s important to note that the cost of your life insurance is determined by more than just your overall health.
Other driving factors include your gender, age, and lifestyle choices. As an example, cigarette smokers typically pay 3 to 5 time more than non-smokers. However, contrary to what some believe, you don’t need good credit to qualify for coverage, and if you’re not a bomb dismantler, your occupation probably won’t affect the cost of your life insurance.
At JRC Insurance Group our experts recently compared pricing from more than 50 top-rated life insurance companies to illustrate the average cost of life insurance by age and gender.
Quick Article Guide
Here’s what we'll cover in this post:
How Do I Determine My Rate Class?
When you apply for a life insurance policy, the insurance company’s underwriter will evaluate your overall health to determine your rate class. Every company has their own guidelines for each rate class, but’s it’s important to note that some companies are more lenient with health issues than others.For these examples, we’ve listed the average of approximately 20 top-rated company’s guidelines:
Non-Tobacco Rate Classes:
Preferred Best
• No cigarette use within 5 years
• Cholesterol of 220 or less with or without medication
• Blood pressure of 85/135 with or without medication
• No serious health issues
• No more than 25-30 pounds overweight
Preferred
• No cigarette use within 3 years
• Cholesterol of 250 or less with or without medication
• Blood pressure of 85/135 with or without medication
• No serious health issues
• No more than 30-40 pounds overweight
Standard Plus
• No cigarette use within 12 months
• Cholesterol of 300 or less with or without medication
• Blood pressure of 140/90 with or without medication
• Some minor health issues
• No more than 40-50 pounds overweight
Standard
• No cigarette use within 12 months
• Cholesterol of 300 or less with or without medication
• Blood pressure of 140/90 with or without medication
• Average health with age-related health issues
• No more than 50-60 pounds overweight
Tobacco Rate Classes:
Preferred Tobacco
• Daily cigarette use
• Cholesterol of 250 or less with or without medication
• Blood pressure of 85/135 with or without medication
• No serious health issues
• No more than 30-40 pounds overweight
Standard Tobacco
• Daily cigarette use
• Cholesterol of 300 or less with or without medication
• Blood pressure of 140/90 with or without medication
• Average health with age-related health issues
• No more than 50-60 pounds overweight
Now that you have a rough idea of your rate class, you can estimate the cost of your coverage in the next section...
Cost of Term Life Insurance By Age
Below, we’ve compared the cost of a 20-year term policy; the most commonly purchased term length. During the policy's term, your rates are guaranteed not to increase. These monthly rates are for $250,000 of coverage for males and females, aged 30 to 70.
In addition to including the most common rate classes, we've also compared the lowest-priced policy available to cigarette smokers. Please note that daily chewers, cigar smokers, and vape users may qualify for lower rate with some carriers.
$250,000 - 20-Year Level Term for a Female (Ages 30 to 70)
| Current Age | Preferred Best | Preferred | Standard Plus | Standard | Preferred Tobacco | Standard Tobacco |
| 30 | $10.84 | $12.66 | $15.56 | $17.57 | $31.26 | $36.30 |
| 35 | $11.72 | $14.00 | $17.24 | $19.13 | $38.20 | $51.64 |
| 40 | $14.99 | $17.88 | $21.68 | $24.62 | $53.31 | $69.07 |
| 45 | $21.01 | $24.22 | $31.96 | $36.02 | $78.10 | $107.09 |
| 50 | $30.39 | $35.43 | $44.92 | $51.77 | $112.20 | $151.24 |
| 55 | $44.54 | $50.97 | $64.71 | $76.99 | $174.90 | $221.11 |
| 60 | $73.77 | $83.35 | $110.71 | $131.87 | $250.33 | $324.49 |
| 65 | $134.24 | $163.11 | $186.79 | $230.53 | $407.92 | $536.03 |
| 70 | $362.17 | $390.65 | $430.00 | $447.50 | $895.00 | $972.50 |
$250,000 - 20-Year Level Term for a Male (Ages 30 to 70)
| Current Age | Preferred Best | Preferred | Standard Plus | Standard | Preferred Tobacco | Standard Tobacco |
| 30 | $12.31 | $14.84 | $18.02 | $20.53 | $38.40 | $49.22 |
| 35 | $13.11 | $15.68 | $20.33 | $22.72 | $46.25 | $62.76 |
| 40 | $17.29 | $20.60 | $25.95 | $30.58 | $67.81 | $90.74 |
| 45 | $25.78 | $30.20 | $40.06 | $46.52 | $104.35 | $140.05 |
| 50 | $38.08 | $44.67 | $61.24 | $67.51 | $156.10 | $196.33 |
| 55 | $59.45 | $69.59 | $91.38 | $112.04 | $246.06 | $310.10 |
| 60 | $104.77 | $116.38 | $158.99 | $182.81 | $368.21 | $464.83 |
| 65 | $193.22 | $226.25 | $286.21 | $360.47 | $560.90 | $632.21 |
| 70 | $406.90 | $474.39 | $552.50 | $585.00 | $1,110.00 | $1,187.50 |
*Monthly rates are accurate as of 09/20/2023 and are provided for illustrative purposes only.
Cost of Life Insurance By Term
With term life insurance, the longer your term is, the more expensive your policy will be. This is because the life insurance company is guaranteeing your coverage until an older age, when you’re more likely to have some health issues.In the charts below, we’ve compared the annual cost a 10, 20, and 30-year term for $250,000. These rates are for a male and female in excellent health.
Annual Cost of Term Life Insurance for a Female
The Cost for a 10, 20, and 30-Year Term for $250,000
Annual rates are accurate as of 09/20/2023 and are provided for illustrative purposes only.[MULTI-COLUMN CHART Annual Cost of Term Life Insurance for a Female]
Annual Cost of Term Life Insurance for a Male
The Cost for a 10, 20, and 30-Year Term for $250,000
Annual rates are accurate as of 09/20/2023 and are provided for illustrative purposes only.[MULTI-COLUMN CHART Annual Cost of Term Life Insurance for a Male]
Term Life Insurance Policy Costs
Term life insurance is one of the most popular forms of insurance available due to affordability especially when compared to whole life insurance. As the Business Dictionary explains:
"Term life insurance policies tend to be the cheapest form of life insurance that can be acquired to provide a significant benefit on the death of an insured individual."Unlike whole life insurance, which is designed to provide lifetime protection, term life insurance provides a fixed amount of coverage for a set period of time. Below we've compared the monthly cost of a 10, 15, 20, 25, and 30 year term for healthy applicants between the ages of 30 and 70.
Fixed Monthly Rates for A Female in Excellent Health
The Cost for a 10, 15, 20, 25, and 30-Year Term for $500,000
Monthly rates are accurate as of 09/20/2023 and are provided for illustrative purposes only.[MULTI-LINE CHART Fixed Monthly Rates for A Female in Excellent Health]
Fixed Monthly Rates for A Male in Excellent Health
The Cost for a 10, 15, 20, 25, and 30-Year Term for $500,000
Monthly rates are accurate as of 09/20/2023 and are provided for illustrative purposes only.[MULTI-LINE CHART Fixed Monthly Rates for A Male in Excellent Health]
Cost of Whole Life vs Term Life Insurance
In the table below we've compared the cost of $100,000 of whole life insurance to the cost of a $100,000, 30-year level term for an individual in "preferred" or slightly above average health.
Female - $100,000 Whole Life Vs. $100,000 Term
| Age | Whole Life | Term Life | Annual Savings | Savings After 30 Years |
| 20 | $80.94 | $9.29 | $859.80 | $25,794.00 |
| 25 | $90.04 | $9.29 | $969.00 | $29,070.00 |
| 30 | $102.90 | $9.85 | $1,116.60 | $33,498.00 |
| 35 | $118.82 | $11.03 | $1,293.48 | $38,804.40 |
| 40 | $136.33 | $13.27 | $1,476.72 | $44,301.60 |
| 45 | $159.51 | $18.07 | $1,697.28 | $50,918.40 |
| 50 | $191.10 | $28.64 | $1,949.52 | $58,485.60 |
| 55 | $245.70 | $48.98 | $2,360.64 | $70,819.20 |
| 60 | $309.84 | $110.00 | $2,398.08 | $71,942.40 |
Male - $100,000 Whole Life Vs. $100,000 Term
| Age | Whole Life | Term Life | Annual Savings | Savings After 30 Years |
| 20 | $84.61 | $10.59 | $888.24 | $26,647.20 |
| 25 | $92.92 | $10.59 | $987.96 | $29,638.80 |
| 30 | $105.00 | $11.14 | $1,126.32 | $33,789.60 |
| 35 | $121.97 | $12.34 | $1,315.56 | $39,466.80 |
| 40 | $141.40 | $15.39 | $1,512.12 | $45,363.60 |
| 45 | $173.69 | $21.67 | $1,824.24 | $54,727.20 |
| 50 | $214.55 | $35.73 | $2,145.84 | $64,375.20 |
| 55 | $270.46 | $66.88 | $2,442.96 | $73,288.80 |
| 60 | $340.99 | $120.20 | $2,649.48 | $79.484.40 |
As you can see from the rates above, term life insurance provides a significant saving over whole life insurance. This is one of the many reasons that we seldom recommend whole life insurance for males who are older than 55.
The savings is so pronounced that the amount of money saved by purchasing term life insurance instead of whole life insurance is almost equal to the policy's death benefit. Once your term is ended you'll be self-insured, and you can stop making monthly payments to keep your coverage active.
If your afraid you won't be disciplined enough to set aside your savings each month, don't worry. Many term policies will allow you to convert your term policy into lifetime coverage without completing a new health screening or exam.
Is the Cost of Term Life Insurance Decreasing?
The cost of life insurance is heavily influenced by the Commissioners Standard Ordinary Tables, or mortality tables that estimate an individual's longevity. These tables have remained unchanged since 2001 when the insurance industry replaced the 1980 CSO tables that were referenced until that time.
Even with COVID-19, we estimate that the cost of term life insurance for non-smokers has decreased by as much as 10% over the past decade, which may be due to companies using more recent CSO tables when determining their rates.
However, when an approximate 1% per year reduction in life insurance rates is weighed against the increasing cost of coverage as we age, waiting to purchase life insurance is not advisable.
Obtain an Accurate Life Insurance Quote Today
At JRC Insurance Group, we work with over 50 top-rated life insurance companies that specialize in affordable term and whole life issuance products. We also offer guaranteed universal life insurance which works just like term life insurance (no investing) with guaranteed rates and coverage until the age of 85 or later.
If you'd like to learn more about your options for affordable life insurance coverage, or if you would like to obtain an accurate quote based on your age and health, please feel free to call us toll-free at 855-247-9555. Our impartial shopping services are free, and there is no cost to apply for coverage.
You can also request a free instant quote online to compare dates from dozens of highly rated insurers in less than a minute.
Clifford Pendell
Managing Partner and Co-founder
Cliff is a licensed life insurance agent and one of the owners of JRC Insurance Group. He has helped thousands of families of businesses with their life insurance needs since 2012 and specializes with applicants who are less than perfect health. In his spare time he enjoys spending time with family, traveling, and the great outdoors.
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Questions From Our Visitors
Some of the questions we received from our website visitors:
Good read. But you failed to emphasized that a term policy operates in several factors such as the money that you paid is all gone, just like you rented an apartment. 2nd, you did not include the cash value that develops on the whole life over time that were more significant amount that the client can access anytime. One time medical only and what will happen if your term 30 ended on your retirement age? Medical again and the amount of the cost of insurance is so big that a retired person cant afford anymore.
Mr. Dejesus, Thank you for your comment and visiting JRC's life insurance website. Term insurance is not meant to be or marketed as permanent life insurance. It provides a substantial amount of protection while needed...for most people, during their working years while they're raising a family, paying off a mortgage, etc. Once they've passed those markers, they no longer need life insurance. For those who do, they can take advantage of term life insurance's ability to be "converted" to a permanent life insurance policy, without reproving their health. This can be extremely beneficial, as most initially buy term insurance while young and healthy.