Written by
Jessica Gibson
Edited by
Natasha Cornelius, CLU
Natasha Cornelius, CLU, is an insurance editor for Bankrate, specializing in auto, home and life insurance.
Reviewed by
Tony Steuer
Tony Steuer, CLU, LA, CPFFE is an internationally recognized financial preparedness advocate, podcaster, and award-winning author. Tony developed the Get Ready Movement to empower and educate people on all areas of personal finance.
Updated Jul 10, 2024At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity ,this post may contain references to products from our partners. Here's an explanation for how we make money .This content is powered by HomeInsurance.com (NPN: 8781838). For more information, please see our Insurance Disclosure .
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On This Page Jump toAge plays a pivotal role in determining life insurance premiums. Similar to other insurance products, life insurance rates reflect the likelihood of a payout. As we journey through life, the odds of passing away increase, elevating the risk to insurers. This means that as applicants get older, policy costs increase due to the heightened chance of a death benefit claim. While health status, medical history and lifestyle choices also sway pricing, age remains a primary factor that can greatly inflate quotes over time. Bankrate’s team of insurance experts took time to break down how rates correlate to age so that you can know what to expect in your search for a policy.
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Please select age Coverage amountThe amount of coverage you need depends on many factors, including your age, income, mortgage and other debts and anticipated funeral expenses.
Please select Coverage amount Policy typeWhole life insurance combines life insurance with an investment component.
Term life insurance is precisely what the name implies: an insurance policy that is good for a specific term of time.
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Why Lemonade? It's a fresh twist on life insurance: easy, accessible and affordable. See more providers in Choose from insurers inAge remains one of the most influential factors affecting life insurance premiums. Insurers assess premiums based on multiple personal rating factors, but an emphasis is placed on mortality risk, and the probability of death rises steadily as we get older.
Your life insurance needs might also change as you age. Specifically, circumstances in your life and your financial obligations might be different based on where you’re at in life.
Young adults are often in good health and may only need a minimum amount of coverage, which might translate to lower rates. Many individuals will find that a term life insurance policy offers adequate coverage for their needs and budget, but the best policy for young adults might depend on their family situation. Young families often purchase term life insurance because it’s a more affordable option at a time when they’re typically the most financially vulnerable. For instance, young adults might be raising children, paying off mortgages or trying to save for retirement.
To give you an example, take a 35-year-old couple with a five-year-old child. They might consider purchasing term life insurance policies with $500,000 in coverage over a 30-year term. This may help provide a financial cushion for the surviving spouse and child if one policyholder passes away. The death benefit could be used to help pay the mortgage, replace the lost spouse’s income and cover the child’s educational expenses. In most cases, life insurance policies for young adults are based on what fits your budget and covers immediate outstanding financial concerns, such as debts and loans.
An additional option could be purchasing two policies: a 20-year term policy to provide coverage for the child (up to age 25) and a 30-year policy for the benefit of the spouse (mortgage and income replacement). This tailors the coverage to the need and may reduce the overall premium.
As people age, they often benefit from a term life insurance policy that is in effect until they hit retirement. For instance, instead of purchasing a 30-year policy, a middle-aged adult might purchase a 10-year policy if they’re only a decade out from retiring.
If you’re planning on providing a financial cushion for your loved ones, you might consider purchasing a small permanent policy. A $50,000 to $100,000 permanent policy offers long-term financial protection for as long as the premiums are paid. The payout is likely guaranteed, so your beneficiaries could use the funds to pay down debts, pay for your end-of-life expenses or keep the funds as a financial gift.
A larger permanent policy could protect your resources if you have a bigger estate. In many cases, the policy could generate cash value that might be valuable in retirement. The death benefit on a larger policy could also help your loved ones. For example, a death benefit could provide an inheritance or pay estate taxes.
Keep in mind that permanent life insurance premiums are usually 10-15 times higher than term life insurance premiums because policyholders have a much longer period of coverage, and the policy can earn cash value.
Older adults might have a harder time purchasing life insurance. In fact, many insurers stop issuing new life insurance policies to seniors over a certain age — usually around age 80.
Life insurance for seniors can often be cost-prohibitive depending on your health and the type of coverage you qualify for.
Of the life insurance products available, a guaranteed life insurance policy might be one of the only options a senior can qualify for. With guaranteed life insurance, no medical exam or health questionnaire is required, and approval is guaranteed. However, these policies can be expensive and usually have a death benefit cap of around $25,000. Read through policies carefully since they typically come with a graded death benefit period of two years. You might also do the math to find that the cost of the policy isn’t worth the death benefit it provides.
Life insurance companies use a few different criteria to calculate your premium. Some of the most significant ones include your age, overall health, gender, lifestyle factors (e.g., your job or hobbies), the type of life insurance policy you need and the amount of coverage you choose. You may be able to build a more robust life insurance policy with riders, which may also increase your rate. We provide a deeper look into some of these risk factors that insurance companies analyze and how they may impact your life insurance premium below.
Young people tend to pay the lowest life insurance rates, whereas older people tend to pay the highest. Although there are exceptions — usually based on the health of the applicant — a 30-year-old will likely receive a lower premium quote than a 40-year-old. Note that term policies and some forms of permanent life insurance have fixed rates that are set when you purchase the policy. If you take out the policy when you’re younger, you’ll usually enjoy cheaper rates that are fixed for the length of the policy.
Life insurance rates usually increase as you get older because advanced age typically corresponds to health complications or a shorter lifespan. This means insurance companies can generally expect a claim payout will come sooner for an older person and will often charge a higher premium to offset that risk.
The table below showcases examples of monthly life insurance rates by age — particularly highlighting how age influences monthly premiums for 10-year term life insurance policies at different coverage amounts. These sample rates apply to healthy non-smokers with no special risk factors.
As shown in these examples, premiums incrementally increase with age across all policy sizes. A 30-year-old pays nearly a fourth of the cost of a 50-year-old for identical coverage.
| Gender | Age | Death benefit: $125,000 | Death benefit: $250,000 |
|---|---|---|---|
| Male | 20 | $22.50 | $40.00 |
| Female | 20 | $21.25 | $37.50 |
| Male | 25 | $22.50 | $40.00 |
| Female | 25 | $21.25 | $37.50 |
| Male | 30 | $22.50 | $40.00 |
| Female | 30 | $21.25 | $37.50 |
| Male | 35 | $22.50 | $40.00 |
| Female | 35 | $21.25 | $37.50 |
| Male | 40 | $37.50 | $70.00 |
| Female | 40 | $28.75 | $52.50 |
| Male | 45 | $55.00 | $105.00 |
| Female | 45 | $43.75 | $82.50 |
| Male | 50 | $80.00 | $155.00 |
| Female | 50 | $68.75 | $132.50 |
| Male | 55 | $118.75 | $232.50 |
| Female | 55 | $90.00 | $175.00 |
| Male | 60 | $175.00 | $345.00 |
| Female | 60 | $140.00 | $275.00 |
| Male | 65 | $225.00 | $445.00 |
| Female | 65 | $222.50 | $440.00 |
| Male | 70 | $402.50 | $800.00 |
| Female | 70 | $345.00 | $685.00 |
For whole life insurance rates by age, the following table shows examples of how rates fluctuate for a whole life policy at different coverage amounts. Notice that the 35-year-old female pays nearly half the cost of a 60-year-old female. 35-year-old males can expect to see rates more than double by age 60.
| Gender | Age | Death benefit: $55,000 | Death benefit: $100,000 |
|---|---|---|---|
| Male | 35 | $90 | $180 |
| Female | 35 | $78 | $156 |
| Male | 40 | $108 | $216 |
| Female | 40 | $90 | $180 |
| Male | 45 | $120 | $240 |
| Female | 45 | $104 | $208 |
| Male | 50 | $142 | $284 |
| Female | 50 | $110 | $220 |
| Male | 55 | $168 | $336 |
| Female | 55 | $128 | $256 |
| Male | 60 | $206 | $412 |
| Female | 60 | $152 | $304 |
| Male | 65 | $260 | $520 |
| Female | 65 | $194 | $388 |
| Male | 70 | $338 | $676 |
| Female | 70 | $254 | $508 |
| Male | 75 | $476 | $952 |
| Female | 75 | $344 | $688 |
| Male | 80 | $660 | $1,320 |
| Female | 80 | $478 | $956 |
| Male | 85 | $928 | $1,856 |
| Female | 85 | $648 | $1,296 |
Keep in mind that these charts are only for illustrative purposes. Your rates will vary depending on your health and lifestyle factors, policy type, length, coverage amount and company.
Health is another major factor that contributes to the cost of life insurance. People who suffer from pre-existing medical conditions — like diabetes, heart disease or obesity — may not live as long as healthy people with few or no medical conditions. As a result, insurance companies may charge higher rates for people with health issues or a family history of disease.
In most cases, in addition to a traditional medical exam or health questionnaire, insurance companies use rating tiers to determine your health risks. Each rating category is defined as follows:
Insurance companies may use different categories depending on their own regulations.
It may come as a surprise to learn that your gender also plays a key role in your life insurance premium. Men typically pay more for life insurance than women. This is because actuarial data shows that women have a longer lifespan than men, meaning companies may pay out a life insurance benefit earlier for men than for women. According to data from the Centers for Disease Control, the projected average life expectancy for a female in 2022 was 80.2 years old, and for men, the projected average was 74.8 years old.
Your job and lifestyle are also factors that are considered by a company when determining your premium. Applicants who engage in low-risk activities often pay less than those who regularly participate in high-risk roles. For example, an office worker may receive lower premiums than a construction worker. Insurers view certain professions as more accident-prone and hazardous. Maintaining good health can help offset higher premiums in high-risk occupations. Discuss your job duties with a life insurance agent to determine if you qualify for standard rates or may pay more due to elevated mortality risk. Leading a safety-conscious lifestyle can potentially reduce costs regardless of your career.
Similarly, the hobbies you choose may also impact your life insurance rates. High-risk hobbies like skydiving, rock climbing, motorcycle racing and scuba diving may drive up your insurance premiums.
Life insurance premiums are largely dependent on the kind of policy you buy. Term life insurance is typically the most affordable policy type because it only offers coverage for a limited number of years. If you do not pass away during the term or convert or extend the policy, the policy expires without a death benefit being paid out. On the other hand, permanent life insurance policies are generally more expensive because they are intended to provide coverage for your entire lifetime up to a maximum age which can range from 95 to 120.
If you purchase a guaranteed life insurance policy, you could end up paying the highest rate. Guaranteed life insurance policies do not require a medical exam, so to make up for the added risk of insuring older or health-compromised individuals, insurance companies usually charge expensive premiums in comparison to other forms of life insurance. Despite the high rates, guaranteed life insurance policies usually have very low policy limits, as they are generally designed to cover end-of-life expenses.
The last factor that determines your life insurance premium is your policy’s coverage limit. The more life insurance you need, the more expensive your insurance premium will usually be. If you pass away while the policy is inforce, your insurance company agrees to pay your beneficiaries a certain amount of money. Higher limits present a greater financial risk to the company, and that means a higher premium to compensate.
For example, someone who has a coverage limit of $100,000 will likely have a much lower premium than someone with $1 million in coverage. Ultimately, it will cost the insurance company less money to pay out $100,000 than it would to pay out $1 million, so the average cost of premiums would be much lower.
Because life insurance is a personalized product, the best time to buy it is as soon as you realize you need it. For example, some people purchase life insurance when they get married, purchase a home or have their first child. After you buy a policy, if also recommended to regularly review your insurance policy to determine if it still suits your life circumstances.
There is no single best life insurance company for everyone. While life insurance rates are more dependent on application age and health than auto or home insurance rates, the unique needs of each policyholder and the ability of any given company to meet those needs is also an important factor that shouldn’t be overlooked. For example, if you’re looking for a specific rider, you’d narrow your search to companies that offer that coverage option. Understanding your needs and researching various companies may help you find the right option. Each insurance company has its own underwriting criteria, especially for specific health conditions, and how they treat a specific health condition will vary significantly. When in doubt, you can also work with a licensed life insurance agent for more guidance.
While life insurance prices can vary drastically, shopping around and comparing policies can be the best way to find the cheapest price for you. Be aware that discounts are not available for life insurance policies, unlike with home or auto insurance. However, you might be able to get a multi-policy discount by purchasing life insurance through the provider you purchase your home or auto insurance from. If so, your insurer might apply the discount to your home insurance premium.
Deciding how much life insurance coverage to purchase can seem daunting, but there are helpful strategies you can use. When determining how much life insurance you need, assess a few relevant variables. These may include the amount of debt you have, how much you contribute to household income and financial goals for your children (like saving for college). Also consider what other assets you have that your survivors will have access to. From here, it may help to follow a guide or use a calculator to determine how much financial protection you might need in the face of these variables.
