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Most of us believe that average life insurance costs are far more expensive than they actually are—this misconception prevents many consumers from purchasing a policy.

Affordability may not initially seem like a natural pairing with the phrase term life insurance—at least not when we think of a comprehensive policy from a competitive insurance brand. However, the average life insurance costs across the country are affordable and very attainable for most Americans.

» Learn more: How Much Does Life Insurance Cost?

Average Life Insurance Costs Across the USA—They’re Lower Than You Think

The concept of affordability is relative, of course, to your income, assets, and willingness to invest in a product. Although life insurance is less expensive than you might think, most people still don’t have the plan to get a term life insurance quote high on their to-do list.

You might ask: Why allocate a portion of my budget to something I won’t need for a very long time or might never need?

But, the truth is if you would die today, your family would probably need the life insurance payout because most people don’t have enough savings to cover the worst-case scenario in their lives.

But, don’t worry, there is a simple solution:

  1. Start by spending less than you earn to build up your savings fund.
  2. Get an affordable term life insurance policy to cover your debt and protect your family in the interim.
  3. Talk with your family about the reality of your financial situation and ask everyone to stick to a family budget.

» Calculate: Life insurance needs calculator

Even young children can understand the importance of some household expenses over others. If they don’t get the concept of money yet, teach them to conserve resources by paying attention to something they understand—like not wasting food or turning off the lights when they leave a room.

This type of training is essential for children to learn because if you don’t teach them to manage their resources (energy, food, or money) at a young age, you are setting them up not to be able to do it after they leave home and your care. It’s good to know you’re able to live off of less. Most families have to do this from time to time. So, it’s good to plan for a rainy day now and train for it while the sun is still shining.

The average life insurance costs across the USA are affordable and very attainable for most Americans.

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Term Life Insurance: How to Protect Your Family in the Future and Stay Within Your Budget Now

Although you may be far from the age when you’ll begin to think about the legacy that you’ll leave behind, term life insurance can protect your family and help ensure you aren’t leaving their financial security to chance. Let’s take a look some of the average life insurance costs across the country.

We’ve separated the average life insurance costs across the country according to gender. Women statistically live longer than men, so they pay less on average for life insurance coverage. Your price may vary according to health, risk classification, and a few other factors.

We have listed the pricing for one year of term life insurance premiums, but know that you may pay your premium on a monthly basis, if that works better for your budget. For many of these sample policy quotes that monthly premium would cost less than $35/month.

Average Annual Life Insurance Rates for Women

Age at Purchase Policy Amount 20-Year Term Life 30-Year Term Life
30 $250,000 $141 $206
$500,000 $208 $335
$1,000,000 $347 $585
40 $250,000 $185 $314
$500,000 $306 $553
$1,000,000 $534 $1,026
50 $250,000 $375 $689
$500,000 $669 $1,284
$1,000,000 $1,233 $2,349

Average Annual Life Insurance Rates for Men

Age at Purchase Policy Amount 20-Year Term Life 30-Year Term Life
30 $250,000 $156 $240
$500,000 $242 $403
$1,000,000 $415 $720
40 $250,000 $210 $384
$500,000 $348 $687
$1,000,000 $631 $1,281
50 $250,000 $491 $913
$500,000 $898 $1,725
$1,000,000 $1,477 $3,301

» Get your personalized quote: Quotacy’s free life insurance comparison tool

Source: Quotacy: The average of the lowest estimated three rates for each age group.

Waiting to purchase life insurance isn’t a wise financial choice—and not just because you risk leaving your loved ones unprotected.

Premiums become much more expensive as you age.

For example, if you are 40 and wait until you are 50 to purchase a $1,000,000 term life insurance policy, you may pay as much as twice the rate than if you purchased one now.

Other Factors That Impact Average Life Insurance Costs

In addition to age and gender, several other factors impact how much you will pay in term life insurance premiums.

Your Zip Code

Your life insurance product options vary according to where you live. Our free term life quotes tool presents you with a range of policies that are available in your zip code. Be sure to enter the zip code of your primary legal residence. If you have a vacation home in Florida, but pay taxes in New York, use your zip code from the state where you file your taxes to get an accurate quote.

Your Current Health

Although some life insurance companies offer term life policies that don’t require a medical exam, most insurers do review your physical exam results before approving your policy application. Your current weight, blood pressure, cholesterol levels, and other health indicators will be used to help the insurer develop a portrait of your mortality risk.

Your Medical History

Underwriters will review your entire medical history and take into account any major health issues such as heart disease or diabetes, along with your family’s history of hereditary diseases. But past or present health problems don’t mean that you are uninsurable. Quotacy’s insurance advisors can help you find the best-priced term life insurance policy, even if you have a complex medical history.

» Learn more: What is Life Insurance Underwriting?

Your Smoking Status

If you are a smoker, your rates will be higher than if you were a non-smoker. If you have a history of smoking but are now a non-smoker, it is possible that you may receive a better rate than a current smoker.

Your Hobbies & Occupation

Activities such as skydiving, rock climbing, bungee jumping, or other risky-though-fun pastimes can impact your insurance premiums. The calculation of how much they will impact your rates depends on the life insurance company. Participating in these hobbies, however, won’t necessarily prevent you from becoming insured. Quotacy offers free, personal guidance on how to find the right policy for your specific situation.

If your occupation is considered high-risk, your premiums will be affected. It isn’t impossible to find an affordable policy if you are in a profession that is considered dangerous, but you’ll need expert help to find a policy that meets your needs.

How to Find the Best Term Life Insurance Quotes

The number of factors that impact your insurance premiums may seem fairly intimidating, but they shouldn’t prevent you from seeking an affordable policy.

The easiest way to start comparing policies is to use our life insurance needs calculator. It will help you determine how much term life insurance makes sense for you and your loved ones. From there, you’ll be able to get side-by-side life insurance quotes in a way that’s easy to compare your options.

If you’re not quite sure about your financial goals and how term life insurance may fit in, you can always connect with one of our life insurance advisors for guidance.


About the writer

Quotacy is the country’s leading broker for buying life insurance online. We are obsessed with making it easy for everyone who has loved ones who depend upon them to have life insurance.