Average cost of term life insurance (2021): rates by age, term and coverage amount

Average cost of term life insurance 2021

The average cost of term life insurance is $86 month. This is based on $500,000 20-year term policy based on a 18-60 year old in excellent health, non-smoker. We analyzed the data for monthly rates, however, everyone’s rate is different and based on age, health, gender, height & weight, tobacco use and other underwriting factors. To see what your rate can be, find your age in the chart below.

Chat: average cost of term life insurance by age

The average cost of a term life insurance policy for a healthy, 40 year old is $24 month for a woman and $29 month for a man for a $500,000 20-year term policy. If you use tobacco or have health issues the rate will be higher.

AgeGender$250,000 coverage$500,000 coverage$1,000,000 coverage
18Man$12.30$19.07$30.51
18 Woman$10.94$16.18$23.79
19Man$12.30$19.07$30.51
19Woman$10.94$16.18$23.79
20Man$12.30$19.07$30.51
20Woman$10.94$16.18$23.47
21Man$12.53$19.07$30.51
21Woman$10.94$16.18$23.47
22Man$12.30$19.07$30.51
22Woman$10.94$16.18$23.47
23Man$12.30$19.07$30.51
23Woman$10.94$16.18$23.47
24Man$12.30$19.07$30.51
24Woman$10.94$16.18$23.47
25Man$12.30$19.07$30.51
25Woman$10.94$16.18$23.47
26Man$12.33$19.08$30.51
26Woman$11.03$16.20$23.80
27Man$12.35$19.08$30.51
27Woman$11.03$16.24$24.30
28Man$12.60$19.24$31.45
28Woman$11.13$16.28$24.39
29Man$12.60$19.32$31.45
29Woman$11.13$16.36$24.61
30Man$12.60$19.38$31.80
30Woman$11.13$16.37$24.87
31Man$12.90$19.75$32.30
31Woman$11.44$16.58$25.84
32Man$13.07$19.79$32.44
32Woman$11.64$16.99$26.64
33Man$13.25$20.35$33.15
33Woman$11.86$17.28$27.65
34Man$13.38$20.69$33.33
34Woman$12.06$17.63$28.58
35Man$13.65$21.14$34.00
35Woman$12.18$17.99$29.61
36Man$14.24$22.44$37.27
36Woman$12.66$18.89$31.85
37Man$14.97$23.87$39.80
37Woman$13.34$20.30$33.61
38Man$16.03$25.65$43.05
38Woman$14.05$21.77$36.93
39Man$16.79$27.50$46.61
39Woman$14.72$23.32$39.17
40Man$17.85$29.05$50.44
40Woman$15.52$24.55$43.37
41Man$19.40$32.55$56.12
41Woman$16.57$27.22$46.85
42Man$21.02$35.31$62.92
42Woman$17.85$29.14$51.82
43Man$22.82$38.38$70.05
43Woman$19.22$31.53$55.61
44Man$24.98$42.13$78.33
44Woman$20.48$34.01$61.00
45Man$26.19$46.66$87.37
45Woman$22.00$37.62$67.41
46Man$28.44$50.52$94.41
46Woman$23.32$40.27$72.82
47Man$30.76$55.17$103.33
47Woman$24.89$43.38$78.81
48Man$33.48$60.41$112.48
48Woman$27.33$47.48$84.42
49Man$36.07$65.59$123.39
49Woman$29.42$51.85$91.51
50Man$38.90$71.22$133.80
50Woman$31.39$55.67$97.52
51Man$41.97$77.38$149.12
51Woman$34.24$61.43$109.49
52Man$45.55$84.55$162.24
52Woman$37.38$65.54$120.09
53Man$49.82$93.09$179.36
53Woman$38.78$71.02$132.53
54Man$54.90$103.25$198.34
54Woman$42.13$77.69$146.05
55Man$61.24 $114.50 $221.11
55Woman$45.37 $84.15 $158.35
56Man$69.80$126.94$245.37
56Woman$49.80$93.05$179.79
57Man$77.59$141.25$273.36
57Woman$54.05$101.55$197.09
58Man$89.01$163.98$310.85
58Woman$60.81$115.07$218.65
59Man$98.90$183.37$352.42
59Woman$67.54$128.03$244.84
60Man$110.72$200.99$388.22
60Woman$75.80$142.26$268.38
61Man$124.32$232.88$446.42
61Woman$83.87$159.40$305.23
62Man$138.90$263.55$503.80
62Woman$94.03$179.58$338.82
63Man$159.15$295.21$577.89
63Woman$114.54$204.06$390.05
64Man$181.46$337.56$645.97
64Woman$127.94$231.62$437.80
65Man$200.17$384.83$748.01
65Woman$142.47$262.22$493.00
66Man$265.05$459.49$942.59
66Woman$200.38$375.49$687.02
67Man$281.78$541.53$1,048.52
67Woman$227.04$435.58$794.49
68Man$331.86$634.46$1,242.46
68Woman$260.54$496.82$961.81
69Man$360.93$291.49$1,323.90
69Woman$291.49$697.70$1.065.94
70Man$407.04$790.36$1,518.95
70Woman$364.99$705.65$1.223.75
Average term life insurance rates

Methodology: average rates from the top life insurance companies such as: Banner Life, Protective Life, Pacific Life, Lincoln Financial and AIG (American General). Rates are for someone in excellent health. Rates for a 20 year level term. D.O.B. 6/1. Rates as of 9/27/2021

Term life insurance rates by policy length (term)

The tables below are the rates for a 10, 15, 20 and 30 year term policy. A shorter term length equates to a lower premium since the insurance company does not have to lock in the rate for a longer duration and there is less of a chance they have to pay out the money.

We have also have shown the rates by each health class, Preferred Plus, Preferred, Standard Plus and Standard. Each company does have their own underwriting guidelines for each health class.

10-year term life insurance rates

Since the 10-year level term life insurance policy is shortest term available, this is the preferred term duration for those that only need coverage for a shorter period of time and those that want the lowest cost. The longer the term the higher the cost, so those on a budget often choose a 10-year term.

Policy Face AmountPreferred PlusPreferredStandard PlusStandard
$100,000$8.49$9.48$12.77$12.85
$250,000$11.97$14.65$20.83$21.52
$500,000$18.35$24.43$33.45$36.30
$1,000,000$27.73$37.73$55.48$61.54

The monthly rates are for a 40 year old male, D.O.B. 6/1/1981- Rates as of 9/24/2021

15-year term life insurance rates

The next longest term after the 10 year is a 15 year term policy. This means the rate will be locked in for the next fifteen years and will not increase regardless of changes in age or health.

Policy Face AmountPreferred PlusPreferredStandard PlusStandard
$100,000$9.30$10.56$15.29$15.42
$250,000$13.07$17.33$23.15$25.56
$500,000$20.40$28.81$38.24$43.35
$1,000,000$34.42$49.16$68.69$79.11

The monthly rates are for a 40 year old male, D.O.B. 6/1/1981- Rates as of 9/24/2021

20-year term life insurance rates

The most common life insurance policy duration is the 20 year level term. This allows most policy holders to protect their family until they reach important life milestones. The children are adults, the mortgage is paid down or off and many are close to retirement age or self-insured. Also, the pricing for a 20 year term is much less than a 30 year term and whole life.

Policy Face AmountPreferred PlusPreferredStandard PlusStandard
$100,000$10.61$12.95$17.60$17.60
$250,000$17.64$20.92$27.60$31.06
$500,000$29.05$36.07$48.36$56.02
$1,000,000$49.28$64.01$90.45$101.44

The monthly rates are for a 40 year old male, D.O.B. 6/1/1981- Rates as of 9/24/2021

30-year term life insurance rates

The 30 year term policy is the longest term available for most companies. It is popular for younger families, those with a new mortgage or anyone else that is looking for a thirty year rate lock on their life insurance policy. The only drawback for the 30 year term compared to the other term lengths is that is costs more since the rate is fixed longer and there is a greater chance the policy is going to pay out.

Policy Face AmountPreferred PlusPreferredStandard PlusStandard
$100,000$17.24$20.37$25.16$28.70
$250,000$28.45$33.45$46.06$52.70
$500,000$50.53$59.05$84.39$95.67
$1,000,000$94.91$111.60$155.65$179.88

Monthly rates are for a 40 year old male, D.O.B. 6/1/1981- Rates as of 9/24/2021

Term life insurance rates for seniors

Seniors looking for term life insurance can still qualify for life insurance and often at a very competitive rate. For more information on term life insurance rates for seniors take a look at our Term Life for Seniors- Ultimate Guide.

Below is the table for each health class, from excellent to average health for a: $100,000, $250,000, $500,000 and $1,000,000 term life policy for a 10 year term policy, for a 70 year old male.

Policy Face AmountPreferred PlusPreferredStandard PlusStandard
$100,000$86.47$103.52$137.78$148.44
$250,000$177.49$209.39$264.09$309.77
$500,000$316.56$404.62$520.19$596.07
$1,000,000$598.29$765.17$982.74$1,110.61

Monthly rates are for a 70 year old male, D.O.B. 6/1/1981- Rates as of 9/24/2021

Bottom Line

As you can see in the chart above, the average cost of term life insurance is $86 month and rates can range from as low as $11 month and go up to $1,223 month or more. This is for a $250k up to a $1 million 20 year term policy.

Term life insurance rates are based on several factors such as your: age, health, coverage amount, term length and the company you choose. To receive personalized term life insurance quotes based on these factors you can receive instant term life insurance quotes take advantage of our instant quoting software.


FAQ

Are term life insurance rates fixed?

Yes, if you choose a “level” term policy the rate will not change for the term length you select.


Is there a penalty to cancel a term life insurance policy early?

No, the is not a penalty to cancel a term life policy early. You can cancel anytime.


Is there a waiting period on term life insurance?

No, there is no waiting period on term life insurance. A term life insurance policy has full coverage from day one (except for a two year suicide clause and two year contestatiblity clause if there is misrepresentation on your application).


How do you get the best rate on term life insurance?

The easiest way to get the best rate on term life insurance is to compare rates from multiple life insurance companies since each one has their own rates and underwriting guidelines.


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