Posted on: July 2, 2021 Posted by: Talha Seo Comments: 0
average cost of life insurance

Life insurance confers several benefits to you and your family. For one, they won’t have to worry about future living expenses. Some life insurance policies can cover chronic or terminal illnesses.

When you get life insurance, you’ll pay premiums for years or decades. It’s why it’s important to understand the costs of life insurance.

In this guide, we’ll discuss the average cost of life insurance. Read on and learn more.

The Average Cost of Life Insurance

Different factors determine individual life insurance quotes. These factors assess your risk.

As of June 2021, a 35-year-old healthy male can expect to pay around $30 in monthly premiums. It’s for a 20-year $500,000 term life insurance policy. Meanwhile, a 35-year-old female pays $25 for the same term life insurance policy.

Rates are higher for whole life insurance policies. A 35-year-old healthy, non-smoking male pays around $517 monthly. This is with premiums paid up by age 99 for a $500,000 policy.

Types of Life Insurance

You can categorize life insurance options between term life insurance and whole life insurance.

The former is the least expensive option. You only get standard insurance, covering a set number of years.

As for the latter, it lasts a lifetime. It also includes an investment portion to use later in life. Because of its length and extra components, whole life insurance is more expensive.

If you have military insurance, learn how to convert it to whole life insurance at Paradigm Life Insurance.

How Are Life Insurance Rates Determined?

The cost of life insurance premiums depends on life expectancy, age, gender, and health. It also considers whether you’re a smoker.

In general, you’ll pay cheaper premiums the healthier you are. Insurers categorize applicants into super preferred, preferred, and standard. Super preferred is the healthiest category.

Age and Gender

When you sign your policy, the rate of your premium will be set. It won’t change during the policy’s term. However, the cost of buying life insurance increases as you age.

On average, the cost of premiums goes up by 4.5% to 9% each year. The longer you delay, the more expensive it becomes. Women receive lower rates because they often live longer than men.

We already gave the average premium for a 35-year-old with a $500,000 20-year term life insurance above. A 45-year-old male may pay $59.10 for the same policy. Meanwhile, a 45-year-old female pays $46.36.


Health is one of the most important factors influencing the cost of your premiums. Healthier people pay less because they’re less likely to pass away, making them cheaper to insure.

For term life insurance, 35-year-old Preferred class males pay $28.97 while females pay $24.39.

The same policy for a Standard health class client is $45.41 for males and $36.99 for females.

Get the Best Life Insurance for You

The average cost of life insurance depends on several factors. It includes your age, gender, and health. The type of policy also affects the final rates. Regardless, go for the best policy for you and your family.

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