Life Insurance Rates By Age

life insurance rates by age

Your life insurance rates will depend largely on the type of policy you choose, your current health, and your age.

Age plays a significant role in the amount you’ll pay because life insurance rates are based on life expectancy.

The older a person gets, the higher their probability of death, and therefore, the higher the likelihood that the insurance company will have to pay out on the policy. This means the more years you’ve been around, the higher your rates become.

Estimated Life Insurance Rates By Age

Let’s take a quick look at some sample rates. These represent approximate monthly rates from 2017 on 20-year, 30-year, and whole life insurance policies for men and women of various ages.

Age

Policy amount

20-year term life

30-year term life

Whole life policy

Men Women Men Women Men Women
30 $250,000 $13 $12 $20 $17 $199 $176
$500,000 $20 $17 $33 $28 $390 $345
$1,000,000 $34 $29 $60 $49 $768 $679
40 $250,000 $18 $15 $32 $26 $292 $251
$500,000 $29 $26 $57 $46 $576 $491
$1,000,000 $53 $45 $107 $86 $1,142 $973
50 $250,000 $41 $31 $76 $57 $453 $381
$500,000 $75 $56 $144 107 $900 $750
$1,000,000 $141 $103 $275 $196 $1,790 $1,480
60 $250,000 $123 $86 NA $732 $608
$500,000 $234 $159 $1,457 $1,199
$1,000,000 $449 $303 $2,904 $2,389

Data is calculated from figures on NerdWallet.

As the numbers show, your rates will increase as you get older, so it makes sense to get life insurance while you’re young. Also, note that men tend to have higher rates than women. This is because women have a slightly longer average life expectancy than men, making them easier to insure.

Life Insurance In Your 30s

Purchasing life insurance early can be highly beneficial.

In your 30s, you have 40 to 50 years of life ahead of you, and most people won’t have any serious health issues to worry about. This means life insurance rates are much lower overall.

Purchasing a long term life insurance policy at this age makes a great deal of sense since you’ll have a lower rate for the whole term.

For instance, if you’re a male at the age of 31 and you purchase a 30-year policy covering $1 million, you’ll have a low rate of $31 per month ($372 per year) until you’re 60.

When purchasing life insurance in your 30s, you’ll need to make sure you get enough to cover your needs. Odds are, you’ll have a family, a mortgage, and other expenses, so getting a high level of coverage is recommended.

A permanent policy may also be a good idea since it will have plenty of time to build cash value before you retire.

Life Insurance In Your 40s

In your 40s, you’ll likely have significant expenses to take care of.

If you pass on, that translates into a heavy burden for your spouse that includes funeral costs, mortgage payments, and your general cost of living. Some of your children may have moved out by now, but you may have the costs of college tuition. At this point, you may start seeing some health problems creep up as well.

At this age, insurance companies will charge more to cover you. That said, a longer-term policy may not be a bad idea—a 30-year policy will cover you until you’re 70. It’ll be roughly a tenth of the cost of a whole life policy, and although it won’t appreciate in value, it has a good chance of covering you just as long.

Life Insurance In Your 50s

By your 50s, your expenses will have changed significantly. You probably won’t have as many family expenses with children moved out, but the need to start preparing for the future will have never been greater either. You may have some more significant health problems that require extra coverage for medical expenses.

The nature of this stage of life, with your older age and potential health problems, makes life insurance more expensive. A term policy won’t have to cover as much time which may help with the cost.

Life Insurance In Your 60s

In your 60s, it’s imperative that you get life insurance. Many companies won’t insure someone over the age of 65, and if you don’t already have a policy, your rates will only increase each year. Health problems may also make it difficult to get insured, so keep that in mind.

However, many of the expenses you had when you were younger may not exist anymore. Your mortgage may be paid off, and your kids should have moved out by now. You probably won’t need as much coverage as you did twenty years ago, so a smaller policy could be the way to go.

Your policy will also make things more comfortable for your family in the event that you pass on, helping with funeral expenses and providing continued support for a surviving spouse.

The Best Time To Get Life Insurance

The best time to get life insurance is now.

The earlier you start, the less expensive your policy, and you’ll have far more options to choose from as well. The benefits of whole life policies multiply more the younger you are, all while saving you in the long run.

Learn more about life insurance:



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