Average Term Life Insurance Rates By Age

Having thoughts on buying life insurance for yourself in this pandemic? However, do be aware of the fact that insurance companies have made amendments to their policies and products. After this pandemic, you might want to consider an insurance policy that is most beneficial.

We know for a fact that prices are the main factor when deciding on a policy, perhaps this might even create a sense of doubt whether you should even buy one? Which is why we’ll be clearing your doubts and hopefully, help you make a decision.

Your age is the biggest role in determining how much your policy and its annual premium cost are.

How Much Is Life Insurance

Technically, if not all, most life insurance companies rates are based on your health status and age. But, even your job, smoking habit – if you have one, weight and family health history if factored in, when purchasing life insurance.

Luckily, unlike any other type of insurance, your location is not a factor affecting your life insurance policy. The average and most minimum cost of life insurance is about or around $26 per month.

This is solely based on the life insurance data provided by Quotacy for the 20-year term life policy – the common policy term sold. However, life insurance rates may vary from one applicant to another, based on the policy types and insurers.

We’ll be giving you a breakdown of just how much of a factor is you age when buying life insurance.

How Are Life Insurance Rates Measured

In general, your health insurance premium depends on how healthy you are. The healthier you are, the cheaper your premiums are likely to be. Your age significantly impacts your premium costs.

That’s why it’s smart to invest in life insurance as early as possible; because the longer the wait, the more chances your rates will increase solely based on your age and health.

Insurance companies typically class individuals using terms such as standard, preferred and super preferred, with standard being the least healthiest category. Insurers would then calculate your premiums based on the risk class you’re categorized in.

How Life Insurance Rates Rise With Age

The rate for a life insurance policy is determined during the time of purchase, and further set for the policy’s duration. According to the Director of Life Insurance Concepts Inc, the premium amount on your insurance will increase around 8% to 10% with your age each year.

The main reason as to why every new year causes a rise in your premium rate in pretty simple math. Every birthday you have, moves you a year nearer to your life expectancy, which in turns makes you more costly to insure.

Your premium rate is fixed when the policy is signed, and won’t change during the entire term of the policy. But as mentioned earlier, the cost of purchasing life insurance gradually increased as you age.

You can use the term life insurance calculator on noexam insurance website to check and compare the term life insurance rates:

All you’ve to do is fill the necessary fields and receive a quote from them. You can “click” apply when you are given a quote that appeals to you and your budget. Once you’ve begun your insurance application, you’ll be asked to answer a few health related questions. These questions will revolve around yours and your family’s medical condition.

Moreover, to make things easier for you, we’ve made a chart from their noexam insurance website’s, sample term life insurance rates to give you an idea what you can expect, for both men and women at different ages.

Average 10 Year Term Life Insurance Rates

The 10-year term life insurance policy usually costs the cheapest. It offers a specific level of premium until the term ends. Once the term ends, the premium rate will rise yearly if renewed.

Average 15 Year Term Life Insurance Rates

The 15-year term insurance policy is not very different from the 10-year term, but it is one of the more inexpensive term lengths. Once the term ends, the premium rate will rise yearly if renewed.

Average 20 Year Term Life Insurance Rates

The 20-year term insurance policy is one of the more popular ones. Once the term ends, the premium rate will rise yearly if renewed.

Average 30 Year Term Life insurance Rates

The 30-year term insurance policy offers the most coverage, but it’s the more expensive one as well. As mentioned earlier, once the term ends, the premium rate will rise yearly if renewed.

Why Choose Term Life Insurance: Affordable, Flexible, and Straightforward Coverage

Term life insurance offers a practical and cost-effective solution for many. Your premiums are spread over 10-30 years, depending on your policy term, making it manageable and predictable. Instead of facing low premiums when young and high premiums later, you pay a consistent amount each year.

Benefits of Term Life Insurance

Affordability: You only pay for what you need. This means you get maximum life insurance protection at the lowest cost compared to other insurance types.

Short-term Coverage: Term life insurance has an expiration date. You choose how long you want coverage and can extend it if needed.

Simplicity: This insurance is straightforward—just pure life insurance. No medical exams are required.

Flexibility: Use your term life insurance for various purposes, such as paying estate taxes or protecting your family.

Peace of Mind: You can relax knowing your beneficiaries will be financially secure.

Given its affordability and practicality, term life insurance is becoming increasingly popular. It’s budget-friendly and helps you save, especially when supporting a family or paying a mortgage.

What Life Insurance Term To Get

This is a very commonly asked question, as to how to determine which term length suits your needs best. To be honest, the perfect term length is the length that provides as much coverage as possible, when it’s most needed.

A 30 year term life insurance will definitely provide you with the best value, but given the situation, it might not be the right option. When you’re deciding on a term length, consider your age, financial situation currently and how much insurance do you need.

Of course, a 30 years term makes the most sense if it’s more affordable, because as we shared earlier, the older you get, the more expensive your life insurance policy gets. In simple terms, a 30 year term insurance policy at the age of 40 is cheaper as compared to a 20 year term at the age of 50.

Once again, we’d like to emphasize that the insurance policy you’ve decided to go ahead with, has to meet your insurance needs and be affordable too.

Conclusion

As shown, term life insurance is usually more affordable than whole life insurance. Your age, health, and gender affect the cost. Sometimes, it’s just a few dollars, providing valuable protection for your family.

Improving your health can lower your insurance costs. For example, quitting smoking can significantly reduce your premiums. Smokers often pay twice as much as non-smokers.

Life insurance is crucial for your family’s financial security. It’s the most efficient way to ensure your loved ones have the resources they need if you pass away. Without it, your family could face unpaid expenses and debts during a difficult time.

Making an informed decision when purchasing life insurance is essential due to its importance. We hope this guide helps you understand average term life insurance rates better.