The Average Cost Of Life Insurance By Age - Money Under 30
Considering getting a life insurance policy? You may be curious to find the average cost of life insurance by age as well as how life insurance rates are determined. Here's how.

Life insurance is a great tool to make sure our loved ones can survive financially should the unthinkable happen and you pass away early in life.

Most people aren’t independently wealthy, so the proceeds from a life insurance policy are vital to ensure your loved ones can continue their current standard of living.

Even if you’re a stay at app德扑圈官方网址home parent, the value you provide to your household would cost a pretty penny if you hired the same tasks out to others.

If you’re considering getting a life insurance policy, you may be curious to find the average cost of life insurance by age as well as how life insurance rates are determined.

Here’s what you need to know.

How life insurance rates are determined

Life insurance companies use many factors to determine your premiums. In an overall sense, life insurance companies predict when a person will die using mortality tables.

They also use health information or other information that can help predict when you’ll die to decide which mortality table to use, trying to find the best match possible.

A variety of factors are considered

Typical factors insurers may consider include your:

  • Gender
  • Age
  • Pre-existing conditions
  • Immediate family’s medical history
  • Occupation

Insurance companies use those factors to decide on your premium

Insurance companies then must predict how much money they will earn by investing your premiums based on the current and predicted future interest rate environment.

The more interest the insurance companies can earn on the premiums you pay, such as in high-interest rate environments, allows them to offer lower premiums and vice versa.

Insurers must consider the above factors and calculate how much your life insurance premiums need to be to cover their costs, such as administrative fees to administer the policies, and provide the payout you selected based on the mortality tables. 

The average cost of life insurance premium by age

In general, the older a person is the greater chance there is of a person dying. Therefore, premiums generally tend to rise as you get older if all other factors are constant.

Here are some example premiums for a 20-year term life insurance policy worth $250,000 would cost on an annual basis for a smoker and non-smoker according to ValuePenguin.

AgeAnnual Premium (Non-smoker)Annual Premium (Smoker)
25$330.33$668.54
30$334.54$721.99
35$359.78$809.02
40$432.36$1,175.35
45$619.42$1,881.55
50$918.91$2,798.50
55$1,455.34 $4,469.64
60$2,492.43 $6,668.71
65$4,172.01 $11,859.78

Ways to lower your life insurance premiums

It’s possible to obtain lower life insurance premiums in a few ways:

Maintain your health

The first way to lower your life insurance premiums is to make sure you are in the best health possible.

If you’re a smoker and can stop smoking, you stand to save money on your premiums. Maintaining a healthy weight, blood pressure and cholesterol should help you qualify for the best rates, too.

Avoid risky sports

You’ll also want to avoid risky sports such as skydiving. If you die skydiving and don’t have a policy that allows payments for skydiving deaths, you may not receive an insurance payout. And if you get a policy that allows you to skydive, your premiums will likely be higher. 

Apply for insurance while you’re young

Having life insurance when your young can save you a lot of money. As we’ve said before, when you’re young, typically your premiums will be very low considering you’re likely the healthiest you’ll ever be and your chances of passing away are less.

Places to find life insurance

You can find life insurance policy quotes in a number of places, but our favorites are Ladder and Policygenius.

First, if you aren’t sure how much life insurance you need, here’s a handy calculator you can use to estimate the amount of life insurance you need to purchase.

Policygenius

The Average Cost Of Life Insurance By Age - Policygenius

Policygenius offers term life insurance, level term life insurance, return of premium life insurance, no medical exam life insurance .and whole life insurance.

In general, most people are best off sticking with term life insurance, but other life insurance products do have valid uses depending on your specific situation.

Policygenius takes a three step approach to life insurance quotes.

  • Step one: You calculate the amount of life insurance you’ll need using Policygenius’ life insurance calculator.
  • Step two: Compare multiple life insurance companies’ quotes, usually more than a dozen, side by side so you can find the most affordable quote that meets your needs.
  • Step three: Apply for the life insurance policy from the company or companies you’ve chosen.

If you run into any questions or problems while getting a quote or filling out the life insurance application, you have access to PolicyGenius’ experts every step of the way. 

See details/apply or read our full Policygenius review.

Bestow

The Average Cost Of Life Insurance By Age - BestowIf you want quick approval on a reliable policy, Bestow is another great option.

With no medical exam or complicated approval process, Bestow makes getting life insurance easy. Just provide some basic information and Bestow takes it from there, using big data to issue a quote. Bestow’s policies are through North American Company for Life and Health Insurance, a highly-rated provider, so you’ll know you’re getting coverage you can count on.

See details/apply or read our full Bestow review.

Sproutt

The Average Cost Of Life Insurance By Age - SprouttSproutt is a life insurance marketplace with a human touch, offering dedicated advisors who are ready to hop on a call with you and answer any of your life insurance questions. Their easy to navigate website makes getting a quote from some of the most highly rated insurers a breeze. More than that though, Sproutt stands out because they’re determined to help you not only find the best life insurance policy, but also live the best life possible. You can even get personalized suggestions and recommendations for your life by filling out their innovative QL Index questionnaire. 

One of the best things about Sproutt is their ability to find you a variety of different types of life insurance policies including coverage between $50,000 and $3,000,000. Offering term, whole, universal, variable universal, simplified issue, and guaranteed issue policies, anyone can find a policy that works for their needs through Sproutt. 

See details/apply or read our full Sproutt review.

Ladder

The Average Cost Of Life Insurance By Age

Ladder offers affordable term life insurance that’s easy to understand and quick to set up online. It only takes a few minutes to apply and you get an instant decision. The policies are issued by Fidelity Security Life Insurance and in New York by Allianz Life Insurance Company of New York.

If you have questions, you can speak with a Ladder insurance expert on the phone. Plus you can apply for more or decrease your life insurance without fees as your situation changes over the years; you are not locked into any policy.

See details/apply or read our full Ladder review

Summary

If you need life insurance, make sure you get it as soon as possible. In general, the earlier you get life insurance the cheaper it is.

If you improve your health or other factors change that result in lower premiums, you may be able to get a new policy and cancel your older policy to lock in a lower rate.

Read more

Related Tools

About the

Total Articles: 74
Lance Cothern is the founder of Money Manifesto, a personal finance blog that helps people to master their money so they can live their ideal life. In addition to blogging, he enjoys spending time at the beach with his wife and son. You can connect with Lance on Twitter, Facebook, Pinterest and Reddit.

Article comments

We invite readers to respond with questions or comments. Comments may be held for moderation and will be published according to our comment policy. Comments are the opinions of their s; they do not represent the views or opinions of Money Under 30. Comments have not been reviewed or approved by any advertiser, nor are they reviewed, approved, or endorsed by our partners. It is not our partner’s responsibility to ensure all posts or questions are answered.

Cancel reply