Sean Meaike
Shawn Meaike

Life Insurance Rates by Age: A Complete Guide

Life insurance provides policyholders with peace of mind by ensuring their loved ones have a financial buffer in the event of their passing. While deciding how much insurance they need depends on their living situation, age is one of the main factors that influence the monthly price of life insurance policies.

The older a person is, the more expensive their policy is. However, insurance providers consider other factors alongside age when calculating their customers’ costs.  Shawn Meaike dives into more details on life insurance rates below.

Age Is One of the Biggest Factors Affecting the Monthly Life Insurance Premiums

In fact, age is perhaps the main factor that determines monthly premium payments.

However, women tend to pay lower premiums than men of the same age as women will statistically live longer than men.

Some life insurance policies don’t require a medical exam, but others do. The outcome of these assessments is considered in relation to the policyholder’s age to determine the premium payments.

Smokers should expect to pay significantly more than those who don’t smoke because they have a higher risk of dying earlier. According to national averages, smokers pay 218% more for life insurance!

Providers determine premium costs by determining the risk of death for large demographics. But since each policy is tailored to the specific individual, monthly payments vary massively. 

Those with term life insurance policies, for example, have to apply for renewal once their coverage ends. At this stage, they’re much older than when they first took out the policy and, thus, should expect to pay more. 

Average Cost of Life Insurance by Age and Smoker Status: A Comparison Table

Luckily, the average cost of life insurance doesn’t change too much while policyholders are in their early stages of life — it’s only 6% more expensive at age 30 than at 25.

But the gap becomes much wider as they age. There’s an average increase of a whopping 86% (that’s $275 per month) between the ages of 60 and 65.

The table below displays the average premium price for a 20-year term life insurance policy and a $500,000 death benefit.

Age Average Monthly Rate (Nonsmokers) Average Monthly Rate (Smokers) 
25 $31 $86 
30 $33 $92 
35 $38 $117 
40 $50 $179 
45 $118 $426 
55 $190 $663 
60 $318 $1,007 
65 $593 $1,528 
Sean Meaike

Average Cost of Life Insurance by Age and Gender: A Comparison Table

Men tend to pay 23% more for term life insurance than women due to their statistical lifespan.

The table below displays the monthly premiums for life insurance policies with a 20-year term length.

Age Policy Face Value Male Premium Female Premium 
30 years $250k $21 $18  
 $500k $33 $28 
 $1M $58 $49 
40 years $250k $30 $25 
 $500k $50 $41 
 $1M $93 $76 
50 years $250k $67 $52 
 $500k $118 $92 
 $1M $226 $173 

The sooner people acquire a life insurance policy, the less they will pay, especially if they don’t smoke and pass the obligatory medical exams.