How Much Does Life Insurance Cost?

The average cost of a 30-year term life insurance policy with a $1 million death benefit is $174 per month for a 35-year-old man in good health. The same policy for a woman of the same age and health status averages $132 per month.

The average monthly cost of life insurance can vary widely based on factors like your age, health, the type of policy, and how long your policy will be in effect. Term life insurance, which provides coverage for a set number of years, is generally cheaper than whole life insurance, which is permanent coverage.

This guide will cover how much life insurance costs, how to estimate the amount of life insurance you need, and how to find affordable coverage.

How much is life insurance?

The median cost of term life insurance is approximately $64 per month. This average premium accounts for different policy types, ages, term lengths, and coverage amounts. Seniors generally pay more for life insurance. Gender is another factor, with women typically paying less for life insurance.

The following table shows typical monthly costs for three main types of life insurance.

Life Insurance Type	Typical Monthly Cost	Best For
Term life	$64	Shorter-term coverage, specific financial goals
Whole life	$450	Stable premiums, long-term coverage
Final expense	$50–$100	Covering burial or cremation costs

Cost of term life insurance

Term life policies last for a specified policy term — from a one-year term to a 30-year term. If you buy a term policy, your beneficiaries will receive a payout only if you pass away during the policy term. At the end of the term, you may have the chance to renew your policy.

The table below shows the average rates for term life insurance based on different ages, term lengths, and coverage levels.

Age/Gender	Term	Example Monthly Premium: $250,000 Policy	Example Monthly Premium: $1 Million Policy
25-year-old woman	30 years	$41	$101
25-year-old man	30 years	$47	$134
45-year-old woman	20 years	$37	$187
45-year-old man	20 years	$73	$247
55-year-old woman	10 years	$78	$254
55-year-old man	10 years	$106	$356

Source: Average rates based on AI-assisted analysis of term life insurance quote data provided by Insurify life insurance partner LifeQuotes. Averages are rounded to the nearest dollar. Premiums vary depending on individual health, issuing company, and other factors. The best way to learn how much you might pay for life insurance is to request a quote.

Life insurance premiums increase with age because health risks also generally increase as you grow older. And women pay less than men because they tend to live longer and are less likely to engage in risky hobbies or occupations.

Pros and cons of term life insurance

Term life insurance can be a good option if your beneficiaries need financial protection for a finite time. But it’s not the right choice for everyone. It’s important to consider the advantages and disadvantages of term life before committing to a policy.

Who should consider term life insurance

Term life insurance comes with lower premiums, which makes it a good choice for people on a budget. For instance, a younger parent who has high child-care costs but still wants life insurance might choose a term life insurance policy to cover their family until their children are college-aged.

Cost of whole life insurance

A whole life insurance policy (also known as a permanent life policy) typically costs more than a term policy because it offers lifelong coverage. When you buy a whole life policy, your beneficiaries will receive a payout whenever you pass away — it doesn’t have to occur within a specified term.

Whole life insurance policies build up cash value over time. The cash value is typically tax-deferred, and you can borrow against it in certain circumstances.^[2]

Pros and cons of whole life insurance

The idea of cash value may sound attractive, but that advantage comes at a cost. Premiums for whole life are generally significantly higher than for term life insurance policies. Whole life can be a good choice for some people, so it’s important to consider the advantages and disadvantages before buying a policy.

Who should consider whole life insurance

Whole life insurance has higher premiums but also typically comes with a cash value component that grows tax-deferred over time. This type of policy can be a good choice for high-income earners or people who have a specific investment or savings goal.

For example, a parent with a disabled child might consider whole life insurance as a way to save toward the child’s financial stability when the parents are no longer alive.

Cost of final expense insurance

Final expense insurance generally costs around $50–$100 per month, but your exact premium will vary based on multiple factors, including the amount of coverage you buy and your age. Although final expense insurance is usually cheaper than term or whole life policies, death benefits are usually much lower.

When you pass away, your beneficiaries can use the payout from your final expense policy to cover funeral costs, medical bills, any debts you may have left behind, or other financial obligations. Typical coverage amounts are $10,000–$20,000.

Pros and cons of final expense insurance

Final expense insurance isn’t right for everyone, so it’s important to weigh the advantages and disadvantages before choosing a policy.

Who should consider final expense insurance

Final expense insurance can be a good option for people who want affordable coverage to ensure their loved ones don’t struggle with end-of-life expenses such as burial, cremation, or medical debt. But it may not be a good option for anyone who needs coverage to replace their income, pay off a mortgage, or pay for children’s education.

Term life vs. whole life insurance costs

Although they’re both life insurance products, term life and whole life have significant differences. Before choosing which is right for you, it’s important to understand how each works and its advantages and disadvantages.

The following table compares key differentiating features of term life and whole life insurance.

Comparison Point	Term Life	Whole Life
Monthly cost	Lower	Higher
Coverage length	Usually 10, 20, or 30 years	Permanent
Cash value	No cash value	Accrues cash value
Best for	People with specific financial goals, such as income replacement; people who know they’ll only need coverage for a portion of their lives; people who prioritize affordability	People who need lifelong coverage; anyone who wants a cash-value component in their coverage

Factors that affect the cost of life insurance

Like other forms of insurance, life insurance has several rating factors, which are personal details that affect your insurance costs.^[3] Here are a few to keep in mind:

• 

  Age

  The older you are, the more you’ll pay for a life insurance policy.

• 

  Gender

  Women have longer lifespans than men, which leads to lower premiums.

• 

  Health status

  People with chronic conditions — like diabetes, high blood pressure, or other health problems — typically pay higher life insurance premiums.

• 

  Tobacco use

  Smoking and other types of tobacco use create significant health risks, and insurers price premiums to account for those risks.

• 

  Occupation

  Some occupations, like law enforcement and first responders, are inherently risky.

• 

  Risky hobbies

  Certain pastimes, like skydiving, can increase your risk of serious injury or death.

Tips for calculating how much life insurance you need

Purchasing the right amount of life insurance coverage ensures your beneficiaries will have financial security if you pass away. Finding a coverage level that meets your insurance needs can be tricky.

Here are some options for estimating how much life insurance you should buy.

DIME

The DIME method stands for “debt, income, mortgage, and education.” Simply add your debt payments, future lost income, mortgage payments, and education costs together to get a more comprehensive estimate of your insurance needs.^[4] Though this calculation is a bit more complicated, it’s a great option for people with outstanding debts or a sizable mortgage to pay off.

10x your income

Multiplying your income by 10 is a simple way to calculate life insurance needs.^[5] It’s not the most exact method, but it can help give you a rough estimate. For instance, when you just multiply income, you don’t consider your debts and other expenses. Plus, it doesn’t account for inflation, which will devalue your income as the years pass.

Income x 10 + $100,000

After you multiply your income, add an additional $100,000 to your coverage to account for any education costs. The average annual cost of four-year colleges ranges from $9,800 for public colleges to $40,700 for private colleges.^[6] Adding $100,000 can help cover a dependent’s college tuition. Overall, policyholders with dependents should consider this method in order to meet future education costs.

Income + cushion

Choosing to simply multiply annual income may not cover all your family’s future expenses. If you pass away, your loved ones need support to handle final expenses, such as funeral or cremation costs. A cushion can cover these costs. If you stay home, a cushion can also help handle child-care expenses in the event of your passing.

How to save on life insurance

Life insurance is financial protection for your loved ones, so it makes sense to get the best life insurance policy you can afford. Here are some strategies that can help you save money when buying life insurance:

• Bundle policies. While home and auto bundles are more well known, your insurance company may also offer a discount if you purchase home, auto, and life insurance from the same insurer.

• Know when discounts kick in. Certain discounts kick in at set thresholds — for example, $250,000 or $500,000 limits. Purchasing a coverage level right below one of those thresholds might not be cost-effective.

• Consider lifestyle changes. Quitting smoking or other habits that negatively affect your health may help you find more affordable life insurance.

• Compare quotes. Just as you‘d comparison shop for affordable car insurance, you should compare multiple life insurance quotes. Receiving quotes from more than one insurance company and comparing them side by side is the best way to find savings.

How much is life insurance FAQs