Personal Finance Insurance Life Insurance
Written by Liz Knueven and Alani Asis; edited by Lina Roby; reviewed by Evelyn He
- Average cost per month
- Average rates by sex
- Average rates by age
- Average rates by state
- FAQs
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- The average cost of a life insurance policy ranges from $40 to $55 per month.
- The true cost varies by the type of insurance, coverage amount, and personal factors.
- Permanent insurance tends to be more expensive than term life insurance and is used differently.
- Check out our guide to the best life insurance.
Life insurance is surprisingly affordable, but premiums vary based on the specific type of life insurance. The average cost for a single policy per month ranges from $40 for a variable life policy to $55 for a universal life policy.
You can explore various options with term and whole life insurance, guaranteed-to-pay-out whole life policies vs. plans with an expiration date, and more. Life insurance isn't one-size-fits-all. While an average amount can give you an idea of what you'll pay, many factors go into life insurance costs, like the type of coverage, age, where you live, and other personal factors.
What is the average cost of life insurance per month?
There are two main types of life insurance:permanent life insurance(whole, universal, and variable life insurance) and term life insurance. Each type grows and pays death benefits differently. Each insurance cost also has very different costs associated with it. Here are the differences between each type, along with the average cost, according to 2019 data from S&P Global Market Intelligence:
| Type of life insurance | Average annual premium | How it works |
Whole life insurance | $620 ($52 per month) | This lifelong policy guarantees to pay death benefits to your beneficiaries when you die. Premiums will always stay the same. It's typically used to leave inheritances, but it can be pricey. |
Universal life insurance | $671 ($56 per month) | This lifelong policy is more flexible than whole life insurance. It allows you to change the benefit amount and monthly payments to fit your needs over time. And, like whole life, it's guaranteed to pay death benefits and builds cash value. |
Variable life insurance | $483 ($40 per month) | Type of permanent life insurance also offers cash value. But, this policy is invested in the stock market, so it's slightly riskier than the other types of permanent life insurance. |
Term life insurance | $640 ($53 per month) | This policy is usually cheaper and recommended for young parents who just want to pay the bills for their family should they die. Term life provides enough coverage for a given timeframe, generally between 10 and 30 years. After the years are up, the policy expires. |
Source: S&P Global Market Intelligence
Average cost of life insurance by sex
Sex plays a significant role in your life insurance rate. For the same insurance policy, a female and male will pay different amounts for coverage each month. Males will generally pay more each year.
Here's how this difference stacks up between male and female 35-year-old non-smokers, according to data from Policygenius.
Term life insurance
| Sex | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| Female | $16.60/mo | $25.60/mo | $42.92/mo |
| Male | $18.93/mo | $30.42/mo | $52.01/mo |
Source: Policygenius
Whole life insurance
| Sex | $250,000 | $500,000 | $1,000,000 |
|---|---|---|---|
| Female | $243.00 | $481.00 | $947.00 |
| Male | $288.00 | $571.00 | $1,121.00 |
Source: Policygenius
Average life insurance cost by age
The most noticeable difference is in the older ages of the sample premiums — after age 40, premiums go up significantly. The sooner you get your coverage, the less you could pay each month. As the data below shows, waiting for life insurance coverage won't make it cheaper. Here's how term life insurance costs compare based on age, according to data from Insurify.
| Age | 10-year term | 20-year term | 30-year term |
|---|---|---|---|
| 30 | $24.99 | $27.45 | $33.65 |
| 40 | $28.42 | $35.86 | $56.21 |
| 50 | $53.35 | $76.67 | $125.12 |
| 60 | $148.47 | $233.98 | $252.26 |
Source: Insurify
Average life insurance cost by company
Life insurance coverage, costs, etc. will vary by company. Many life insurance providers will require you to obtain a quote through an insurance agent instead of getting a quote online. Here are the average monthly premiums of several insurance companies.
| Company Name | Monthly Quote |
|---|---|
| Assurity | $27/mo |
| United Omaha | $28/mo |
| Penn Mutual | $42/mo |
| Vantis Life | $44/mo |
| Mutual of Omaha | $51/mo |
| Ladder | $57/mo |
| Haven Life | $60/mo |
| Legal and General | $64/mo |
| American National Insurance Company | $65/mo |
| Amica | $67/mo |
| SBLI | $67/mo |
| American Family Insurance | $72/mo |
| Protective Life | $72/mo |
| Pacific Life | $77/mo |
| Minnesota Life | $78/mo |
Source: Insurify
Average life insurance cost by state
The average cost of life insurance also varies by state, though not by a lot. Below are the average rates of life insurance per state based on 2019 data from the S&P Global Market Intelligence.
| State | Average Annual Life Insurance Premium | Average Monthly Premium |
| Alabama | $602 | $50 |
| Alaska | $655 | $55 |
| Arizona | $615 | $51 |
| Arkansas | $584 | $49 |
| California | $668 | $56 |
| Colorado | $645 | $54 |
| Connecticut | $724 | $60 |
| Delaware | $657 | $55 |
| District of Columbia | $636 | $53 |
| Florida | $627 | $52 |
| Georgia | $630 | $53 |
| Hawai'i | $687 | $57 |
| Idaho | $597 | $50 |
| Illinois | $631 | $53 |
| Indiana | $593 | $49 |
| Iowa | $601 | $50 |
| Kansas | $601 | $50 |
| Kentucky | $599 | $50 |
| Louisiana | $597 | $50 |
| Maine | $641 | $53 |
| Maryland | $712 | $59 |
| Massachusetts | $718 | $60 |
| Michigan | $610 | $51 |
| Minnesota | $639 | $53 |
| Mississippi | $581 | $48 |
| Missouri | $590 | $49 |
| Montana | $601 | $50 |
| Nebraska | $603 | $50 |
| Nevada | $607 | $51 |
| New Hampshire | $708 | $59 |
| New Jersey | $732 | $61 |
| New Mexico | $588 | $49 |
| New York | $675 | $56 |
| North Carolina | $617 | $51 |
| North Dakota | $603 | $50 |
| Ohio | $599 | $50 |
| Oklahoma | $598 | $50 |
| Oregon | $627 | $52 |
| Pennsylvania | $658 | $55 |
| Rhode Island | $660 | $55 |
| South Carolina | $615 | $51 |
| South Dakota | $591 | $49 |
| Tennessee | $609 | $51 |
| Texas | $633 | $53 |
| Utah | $636 | $53 |
| Vermont | $655 | $55 |
| Virginia | $682 | $57 |
| Washington | $655 | $55 |
| West Virginia | $590 | $49 |
| Wisconsin | $607 | $51 |
| Wyoming | $601 | $50 |
Source: S&P Global Market Intelligence. Data shows the estimated average annual premium of term life insurance policies per household.
FAQs
What factors influence life insurance rates?
More than just age, sex, and type of insurance can influence your rates. Your lifestyle and health history could also determine the price you pay. Here are a few things that could make your coverage more expensive than someone your age.
Smoking history
Smoking can increase life insurance premiums quite a bit. Insurance company Protective Life research shows that life insurance is 100 to 300 times more expensive for smokers. According to its data, a 45-year-old male smoker with a 20-year, $500,000 policy would pay $289 monthly for coverage, while a nonsmoker would pay about $52.
History of risky activities
Avid skydivers, scuba divers, or travelers could find their insurance rates higher than others. It's not uncommon for insurers to ask about your history with these activities, travel history, and future plans. A bad driving record could also add to the cost of life insurance.
Health history and medications
Life insurance companies can check your health history and medication history in two ways: a medical records database and your medical exam (although it's possible to get life insurance without a medical exam). Like health insurance, pre-existing conditions could also impact the rate you pay.
How do I lower my out-of-pocket costs for a life policy?
Maintaining a healthy lifestyle is key to lowering your life insurance premiums. Keeping your weight under control, avoiding smoking, and managing any medical conditions you have are among the biggest ways to do so. The cost of a life insurance policy will also tend to be lower for younger applicants than those who are older.
Should I pick the life policy with the cheapest rates?
While cost is important, it is a good idea to pick a policy that offers enough coverage and fits your needs. Traditionally, the rule of thumb is to get life insurance worth 10 times your annual income — so if you make $75,000 a year, you'd get $750,000 worth of coverage. However, many experts consider that a low estimate, especially if you have plans on sending your child to college, or are paying off a mortgage on your home.
Nonethless, some life insurance is better than no life insurance, so purchase as much as you can reasonably afford. It is also important to pick a quality provider. Begin your life insurance search by checking out Insider's top pick for the best life insurance companies.
How do I get life insurance?
There are several ways to purchase life insurance. You can find policies directly through independent insurance agencies to get multiple quotes at once. Or you could go directly through a life insurance provider. Keep in mind that many life insurance companies will not have the option of purchasing a policy online. Instead, you'll have to speak to an insurance agent if you'd like to obtain a quote.
You may need to complete a medical exam. However, some companies are changing their medical exam policies due to COVID-19. Talk with your prospective insurer to arrange an exam you're comfortable with.
How can you reduce your life insurance risk rates?
If you're looking to reduce your costs on a life insurance policy that meets your needs, it's best to act quickly. The older you get, the worse your risk profile. If you have issues like high cholesterol or blood pressure, getting those under control can reduce your rates. Sometimes, it's as simple as shopping around or reducing your coverage rates.
Personal Finance Reporter
Liz was a personal finance reporter at Insider. Before joining Insider, she wrote about financial and automotive topics as a freelancer for brands like LendingTree and Credit Karma. She earned her bachelor's degree in writing from The Savannah College of Art and Design. She lives and works in Cincinnati, Ohio. Find her on Twitter at @lizknueven.
Alani Asis is a personal finance expert covering insurance, retirement, credit cards and more. In addition to writing reviews, guides, and personal finance explainers for Business Insider, Alani was a Mortgage Support Specialist. You can reach her via Twitter at @AlaniAsis.
Compliance and Operations Associate
Evelyn He is a Compliance and Operations Associate on the Personal Finance team to ensure content accuracy and editorial independence so readers get up-to-date and objective financial advice.The compliance team's mission is to provide readers with fact-checked and current stories so they can make informed financial decisions. The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team.
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