Average Cost Of Whole Life Insurance By Age – Researching and purchasing life insurance used to be difficult, but now it’s easier than ever. Not only is there a wealth of information online about life insurance, you can compare free quotes and apply for life insurance policies in minutes right from your couch. So how much does life insurance cost based on age and gender anyway?
To find the answer, let’s examine the factors that influence the price of a life insurance policy. So below we will look at the average price ranges for life insurance by age.
Average Cost Of Whole Life Insurance By Age
The two main factors that determine the amount of life insurance costs are age and gender. In general, the younger you are, the better your health and the longer your life expectancy. So, the younger you are, the cheaper your life insurance costs. There are no big surprises.
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Therefore, it may be helpful to purchase life insurance when you are still young to save money. If you plan to get married and start a family, getting life insurance early is a wise move. Many health problems can and will arise as we age.
Like it or not, gender also plays a role in the price of life insurance. Men tend to die younger so on average they pay more than women. Sorry folks!
And if you are transgender, unfortunately there is no set protocol. Ultimately it will be up to the insurer to decide whether to use your current sex or your birth sex.
The type of life insurance you purchase, term life insurance or whole life insurance, also has a big impact on how much you pay. Term life insurance is much more affordable than whole life insurance. Therefore, term is the most commonly purchased type of life insurance.
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Next, the amount of coverage you need, e.g. the amount of the death benefit payment also affects the price. Of course, broader coverage costs more. And the term of the life insurance policy also affects the price. Longer coverage, higher costs. Pretty straightforward.
Where things can get complicated with pricing is your medical history. Expect to answer questions about smoking, alcohol consumption, and recreational drug use.
Life insurance companies also want to know if anyone in your family has been diagnosed with or died from cancer. They usually want to know if there are diseases such as diabetes, hypertension, cardiac arrest, etc.
In general, you will get the best price if you have no medical conditions, do not take prescription drugs, and do not engage in any type of high-risk activity.
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If you are a skydiver, diver, pilot, roofer, or work with toxic chemicals, expect higher premiums. Do you want to keep your high-risk hobbies or professional risks a secret?
I strongly advise against withholding information or lying on your application as your beneficiaries could end up with nothing. Life insurance companies reserve the right to deny claims if they determine that a policyholder is lying or hiding such information after the policy takes effect.
However, you have every right to look for a new and more secure career. Maybe you’re a construction worker by day and a professional blogger by night. Saying you are a writer or blogger on your life insurance application is the truth.
While it may seem like anything can affect the amount of life insurance costs, the following factors have no impact on the price of the policy:
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If you live in a high-rise building or in an area with high risk of earthquakes, hurricanes or other natural disasters, this will not affect the cost of your life insurance policy.
But you may want to consider purchasing natural catastrophe insurance. Living in a violent, crime-ridden area has no effect on your life insurance premiums.
Additionally, whether you have 0 children and 1 beneficiary or 6 children and 10 beneficiaries also has no impact on the amount of your life insurance costs.
Although life insurance companies use gender to determine policy prices, they cannot discriminate based on race, ethnicity or sexual orientation.
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Ok, how much does life insurance cost on average for men in the United States based on age? Here’s a look at typical rates for men aged 20 to 60 (non-smokers, best health rating). The term is 30 years and these are monthly costs, not annual.
Remember, men have a lower life expectancy than women. According to the National Center for Health Statistics, the average life expectancy for men in America is approximately 76.1 years.
Now let’s consider the average cost of life insurance for women based on age (non-smokers, better health rating). Again, the duration of the contract is 30 years and these are monthly costs, not annual ones.
The average life expectancy of women in America is approximately 81.1 years, which is five years longer than the average life expectancy of men. So, if you are a woman, you should probably get a term life insurance policy.
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If you compare life insurance costs by age and gender, it is clear that women pay on average 10% – 20% less than men.
When I was 34, I took out a $500,000 life insurance policy with USAA. It was a 30-year term life insurance policy for $66.65 a month. At the time I thought it was a great rate.
We always thought that USAA would offer the best rates because it provided financial solutions to military members and their families. Sam’s father fought in Vietnam and his grandfather received a Congressional Gold Medal for service in World War II. Of course, we get the best life insurance rates possible.
Fast forward to the summer of 2020. Sam and I decided it would be beneficial for me to try to increase my coverage now that we have two children. Since we are custodians and jointly manage all of our finances, it didn’t make sense that the life insurance coverage amounts were inconsistent.
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Consulting life insurance quotes costs nothing. I simply enter my information into the free PolicyGenius marketplace. I quickly realized that I was overpaying for life insurance. For the last six years I have paid $20 a month more for 50%
Thanks to PolicyGenius’ ease of use, I applied for a $1,000,000 20-year policy with Principal for $42.80 per month. About three weeks later I was approved and registered immediately.
Comparing my prices to the average cost of life insurance for women in the table above, I’m happy to see that I’m paying $9.92 less per month than the average ($52.72 – $42.80). Plus, I now have double the life insurance coverage ($1 million vs. $500,000) for less. Sweet!
There’s nothing like a global pandemic to remind us that tomorrow is not guaranteed. If you have debt and dependents, it is important to get life insurance.
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It took pandemonium for Sam and I to realize that our life insurance coverage amounts were not compatible. I hope this uncertain time encourages you to take action to ensure your loved ones are protected too.
If you don’t have a life insurance policy yet, want to know if you’re spending too much on your current policy, or want to see how much it would cost to get an additional policy, I encourage you to check out PolicyGenius.
PolicyGenius is an insurance marketplace that makes it super easy to get a free life insurance quote. Not only that, their representatives can answer any questions you may have when comparing policies. They don’t get paid on commission, so you don’t have to worry about upselling.
Dear readers, when was the last time you purchased life insurance? Are you surprised by the pricing tables above for the average cost of life insurance for men and women? What type of life insurance do you have now and how much do you pay per month?
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Sydney worked in the financial industry for 13 years, attended the College of William & Mary with Sam, and negotiated her retirement in 2015 at age 35. She is the CEO of Financial Samurai. Sydney likes to invest in private real estate through Fundrise, his favorite platform to take advantage of lower valuations in the Sunbelt. Fundrise is an affiliate partner of Financial Samurai. The average cost of whole life insurance is $451 per month. That’s what a healthy 30-year-old non-smoker will pay for a $500,000 whole life insurance policy.
At , our educational guides are written and vetted by licensed life insurance experts and reviewed by our Financial Review Board to ensure independence, expertise and accuracy. Our rates are based on internal actuarial tables for 10 life insurance companies offering policies through the marketplace (Brighthouse Financial, Corebridge Financial, Legal & General America, Lincoln Financial, MassMutual, Mutual of Omaha, Pacific Life, Protective, Prudential and Transamerica .) and the Life Insurance Price Index, which uses real-time rate data from major life insurance companies to determine pricing trends. Prices reflect the
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