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Term life insurance is very customizable to fit your needs and budget. One of the most affordable options is a $100,000 term life insurance policy.

When deciding if a $100,000 policy is right for you, here are the three most common questions:

  • Can anyone get a $100,000 life insurance policy?
  • When does a $100,000 of coverage make sense?
  • How much does a $100,000 life insurance policy cost?

To answer these questions, let’s take a closer look at some scenarios and example pricing for different age groups, genders, and term lengths.

Can anyone get a $100,000 life insurance policy?

Life insurance companies require financial justification for the coverage amount being applied for. Most people will be able to justify owning $100,000 worth of life insurance.

If you already own millions of dollars’ worth of life insurance and are at your insurability limit, then you may not qualify for another $100,000.

If you are not employed and have no income, then you may not qualify for $100,000. This scenario does not apply to stay-at-home parents, however. Stay-at-home parents can qualify for a $100,000 life insurance policy as long as the working parent also owns at least $100,000 worth of life insurance.

At Quotacy, we always say $100,000 of life insurance is better than none at all.

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When does $100,000 of coverage make sense?

A $100,000 term life insurance policy makes sense for those who are on a limited budget but still want to ensure their loved ones are protected from the unexpected. At Quotacy, we always say $100,000 of life insurance is better than none at all.

A $100,000 term life insurance policy also makes sense if you’re laddering policies and this policy is for a specific protection goal. Laddering policies means you own more than one life insurance policy.

For example, you and your spouse purchased a home with a 30-year $300,000 mortgage. You have a teenager graduating from high school next year and want to support her through college. You can buy two different life insurance policies that are specific to ensuring your family can remain in their home and financially protecting your child.

A 30-year $350,000 term life insurance policy will provide the cash your spouse needs to continue paying monthly living expenses if you die before the mortgage balance is paid.

A 10-year $100,000 term life insurance policy will provide the cash your family needs to support your daughter through college and her young adult life until she’s financially dependent, even if you die and can’t physically be there to see her through it yourself.

How much does a $100,000 life insurance policy cost?

The cost of a life insurance policy is determined by a number of factors such as gender, age, health status, and the policy coverage and term length you choose. A $100,000 term life insurance policy is one of the most affordable options.

I’ll illustrate the cost of a $100,000 policy across various ages and risk classes. Term length options vary from 10 to 40 years, but I’ll show the most common to keep things simple.

Cost of a $100,000 Term Life Insurance Policy
Insured: Male, Age 25
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$8.24$9.36$12.24
Preferred$9.89$9.89$13.42
Standard Plus$11.58$13.46$15.47
Standard$12.17$13.54$18.86
Preferred Tobacco$17.17$19.04$26.18
Standard Tobacco$23.20$26.09$33.32
Cost of a $100,000 Term Life Insurance Policy
Insured: Female, Age 25
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$6.67$8.20$10.85
Preferred$7.77$8.90$11.55
Standard Plus$9.85$12.07$13.51
Standard$11.13$12.15$15.71
Preferred Tobacco$15.55$15.55$19.12
Standard Tobacco$19.04$19.04$24.90
Cost of a $100,000 Term Life Insurance Policy
Insured: Male, Age 30
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$8.39$9.36$12.32
Preferred$9.89$10.16$13.59
Standard Plus$11.58$13.65$16.15
Standard$12.17$13.74$19.71
Preferred Tobacco$17.25$20.74$29.24
Standard Tobacco$24.05$29.15$36.29
Cost of a $100,000 Term Life Insurance Policy
Insured: Female, Age 30
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$7.72$8.27$11.12
Preferred$7.81$9.07$11.97
Standard Plus$9.85$12.15$14.11
Standard$11.13$12.24$16.82
Preferred Tobacco$15.47$17.59$22.10
Standard Tobacco$20.40$21.25$28.56
Cost of a $100,000 Term Life Insurance Policy
Insured: Male, Age 40
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$9.69$10.61$17.88
Preferred$10.71$12.95$20.37
Standard Plus$12.77$18.24$25.16
Standard$15.30$18.33$28.71
Preferred Tobacco$26.26$36.29$50.83
Standard Tobacco$31.45$47.51$62.39
Cost of a $100,000 Term Life Insurance Policy
Insured: Female, Age 40
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$8.07$9.93$15.49
Preferred$9.93$11.09$16.47
Standard Plus$11.94$15.44$21.48
Standard$13.24$15.85$23.26
Preferred Tobacco$21.65$31.11$41.31
Standard Tobacco$28.56$37.57$50.83
Cost of a $100,000 Term Life Insurance Policy
Insured: Male, Age 45
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$12.32$15.68$23.85
Preferred$13.47$18.53$29.71
Standard Plus$16.58$24.48$36.46
Standard$18.43$24.70$41.47
Preferred Tobacco$34.59$51.08$83.64
Standard Tobacco$44.92$70.29$95.54
Cost of a $100,000 Term Life Insurance Policy
Insured: Female, Age 45
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$9.95$13.08$19.44
Preferred$12.04$14.20$21.73
Standard Plus$14.48$20.60$27.86
Standard$16.11$20.71$31.12
Preferred Tobacco$29.41$43.94$61.37
Standard Tobacco$38.42$55.24$74.03
Cost of a $100,000 Term Life Insurance Policy
Insured: Male, Age 50
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$15.81$21.77$35.95
Preferred$17.68$25.62$44.22
Standard Plus$24.36$34.86$52.61
Standard$24.45$35.63$62.28
Preferred Tobacco$48.70$72.59$115.26
Standard Tobacco$66.21$94.18$134.55
Cost of a $100,000 Term Life Insurance Policy
Insured: Female, Age 50
Risk Class10-Year Term Monthly Premium20-Year Term Monthly Premium30-Year Term Monthly Premium
Preferred Plus$13.68$17.83$28.86
Preferred$15.64$18.86$34.30
Standard Plus$19.55$27.45$41.86
Standard$20.40$27.59$45.97
Preferred Tobacco$40.46$59.61$93.75
Standard Tobacco$55.08$75.71$113.13

If something happens to you, term life insurance will financially protect the loved ones you leave behind. A $100,000 life insurance policy is budget friendly, but may not be the right amount for you.

Our life insurance needs calculator can help you determine the right about of coverage you need. Check it out here: life insurance calculator.

If you prefer to talk with an advisor to determine how much life insurance you need, contact us directly here at Quotacy. Our agents are happy to go over your needs, but won’t push you into buying coverage you don’t need.

Note: Life insurance quotes used in this article accurate as of March 17, 2021. These are only estimates and your life insurance costs may be higher or lower.

 

About the writer

Headshot of Natasha Cornelius, a life insurance writer, for Quotacy, Inc.

Natasha Cornelius

Marketing Content Manager

Natasha is a writer and content editor at Quotacy. She is also co-host of Quotacy’s YouTube series. She can't get enough of life insurance and outside of work is also working toward her Chartered Life Underwriter designation. Connect with her on LinkedIn.