Are you considering investing in a life insurance plan, but unsure where to begin? Have a seat, as we’ll be sharing all the ins and outs of the 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.
Table of Contents
- 1 How Much Is Life Insurance
- 2 How Are Life Insurance Rates Measured
- 3 What Life Insurance Term To Get
- 4 Conclusion
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.
Benefits of Term Life Insurance
Insurance companies spread your premiums over the course of 10 – 30 years, depending how long is your term life insurance, and take the average it into one payment. Hence, instead of paying lower premiums at a young age, and relatively higher premiums as you get older, you simply pay the same amount each year.
Here are some benefits of purchasing a Term Life Insurance:
- It’s affordable. You basically only pay for what you need at that time and nothing more. This indirectly means that you’ll be able to get the highest level of life insurance protection, at the lowest cost, compared to other forms of life insurance.
- It’s short-term. Your term life insurance will expire one day. Hence you get to decide how long you’d like to be insured and of course, there are options to extend your insurance.
- It’s straightforward. This is just pure life insurance, nothing more, nothing less. You don’t even require a medical examination.
- It’s flexible. Use your term life insurance to pay your estate taxes, protect your family and more.
- It’s a peace of mind. You can relax and have a peace of mind knowing that your insurance beneficiaries will be taken care of financially.
Taking how affordable and practical term life insurance is, more and more people have started purchasing it. It doesn’t go heavy on your wallet, and you’ll be able to save up, especially when you have a family or mortgage to pay off.
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.
As you can see, term life insurance is generally more affordable than a full life insurance policy. It all depends on your age, health and gender. It could just be a few dollars, and it’ll have an incredible value to have the insurance protection your family deserves.
There are many things that can be done to improve your overall health, such is if you’re a smoker, you could try quitting. Both of these factors play a big part in how much you will pay for your insurance coverage. For example, a smoker may have to pay twice as much as a non-smoker.
Life insurance is the MOST important insurance you’ll want to purchase for your family. Moreover, it’s the most efficient way in ensuring that your loved ones have all the resources they need if you pass away. Otherwise, your family might be left with unpaid expenses and debts if something tragic were to happen and you weren’t insured.
Overall, since life insurance is that vital, it’s important to make the best decision when purchasing one. We hope this read was helpful in you understanding the average term life insurance rates.