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Understanding Term Life Insurance Rates by Age

 

Term life insurance is the least expensive form of life insurance. Did you know that term life insurance rates are even more affordable depending on your age? Find out how your age and health can get you the lowest premiums. Protect the ones you love and easily cover the cost of end-of-life expenses.

Average life insurance costs per year for women

Age at time of policy purchase

Coverage amount

20-year term

30-year term

Whole life insurance

30

$250,000

$141

$206

$2,114

30

$500,000

$208

$335

$4,142

30

$1,000,000

$347

$585

$8,150

40

$250,000

$185

$314

$3,008

$500,000

$306

$553

$5,897

$1,000,000

$534

$1,026

$11,677

50

$250,000

$375

$689

$4,569

$500,000

$669

$1,284

$9,003

$1,000,000

$1,233

$2,349

$17,760

60

$250,000

$1,033

Not available

$7,293

$500,000

$1,911

$14,387

$1,000,000

$3,637

$28,670

All rates compiled by NerdWallet.com. The actual price you'll pay for a policy will vary.

What Is Term Life Insurance?

Term life insurance is a “benefits only” type of insurance that covers the insured against end-of-life expenses including medical bills, funeral costs, outstanding student debt, loss of income, and much more.

Term life coverage insures people for 10, 15, 20, or even 30-year blocks. If the insured happens to pass away during this contracted period, their beneficiaries will receive the benefits agreed upon.

What Age Should I Buy a Term Life Insurance Plan?

As with most forms of insurance, companies want to see a healthier, younger aged clients signing up. The rate of increase for premiums goes up between 8% to 10% for every year of age, says Ted Bernstein, CEO of Life Insurance Concepts, Inc. Every year you get closer to your life expectancy, the more costly it is to ensure you. The younger your age, and the healthier you are, the lower your premium will be.

According to Lifeinsurance.org, “it is not uncommon for a healthy non-smoking 40 year-old male to obtain a 20 or 30-year policy with a fixed premium of less than $30 per month.”

If you’re thinking about getting a term life insurance plan, the best strategy is to compare quotes and lock into a plan before your next birthday. The closer you are to age 20, the better. That’s where the best rates are.

What are Other Factors that Affect Rate?

Premium rates for term life policies are also determined by your health, state, duration of the policy, and company. In order to qualify, your insurance provider may require a medical exam and health questionnaire. They will ask about your family’s history of illness, pre-existing conditions, smoking habits, occupation, prescription medications, and more. Some providers may let potential customers opt out of the health exam if they appear to be young and healthy.

Who Needs Term Life Insurance Most?

Parents of younger children, people with outstanding debt, homeowners, and those that simply cannot afford the higher premiums of whole life policies will see the biggest benefits of a term-life plan. If you’re young, you can get plans for your spouse and children without spending too much more. Many term life policies often have a signing age limit near 80-years old.

Speak with your insurance provider and determine more ways to reduce your premium rate, and give your family the protection they deserve.

*Applications for insurance may be subject to acceptance by insurer. Rates and coverage amounts will depend upon the carrier selected.

 

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