Average Life Insurance Rates for November 2023
The average monthly cost of life insurance is approximately $26, based on a 40-year-old individual purchasing a 20-year, $500,000 term life policy.
by Kowsalya
Updated Nov 06, 2023
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On This Page
- Average Life Insurance Rates for November 2023
- Average Cost of Term Life Insurance Rates by Age
- Average Cost of Whole Life Insurance Rates by Age
- Average Cost of No-Exam Term Insurance Rates by Age
- Average Cost of Term Life Insurance Rates by Health
- Average Cost of Life Insurance by Term Length
- What Factors Are Considered in Determining Life Insurance Rates?
- What Factors Do Not Affect Your Life Insurance Premium?
Average Life Insurance Rates for November 2023
The average cost of life insurance is approximately $26 per month. This estimation is based on a 40-year-old individual purchasing a 20-year term life policy with a coverage amount of $500,000, which is a commonly sold term length and coverage amount.
However, it's important to note that life insurance rates can vary significantly based on several factors. These factors include the individual's age, health condition, lifestyle choices, occupation, and the specific insurance provider and policy type selected.
Life insurance rates are personalized and determined by underwriting processes that assess the risk profile of each applicant. This means that different applicants may receive different quotes from various insurers based on their unique circumstances. Factors such as pre-existing medical conditions, tobacco usage, and high-risk activities can influence the premium amount.
Additionally, the type of life insurance policy chosen, such as term life insurance or permanent life insurance, can also impact the cost. Term life insurance generally offers coverage for a specific period, while permanent life insurance provides coverage for the entire lifetime of the insured.
To obtain accurate and personalized life insurance quotes, it is advisable to reach out to insurance providers or use online tools that take into account individual factors and preferences. Working with a licensed insurance professional can also help navigate the options available and find the most suitable coverage at a competitive rate.
Average Cost of Term Life Insurance Rates by Age
Term Life Insurance Rates by Age (Based on a $500,000, 20-Year Policy for Super Preferred Applicants)
| Age | Average Annual Rate for Men | Average Annual Rate for Women |
|---|---|---|
| 30 | $220 | $183 |
| 40 | $332 | $281 |
| 50 | $817 | $641 |
| 60 | $2,361 | $1,656 |
| 70 | $9,297 | $8,204 |
Average Cost of Whole Life Insurance Rates by Age
Whole Life Insurance Rates by Age (Based on a $500,000 Policy for Super Preferred Applicants)
| Age | Average Annual Rate for Men | Average Annual Rate for Women |
|---|---|---|
| 30 | $4,652 | $4,015 |
| 40 | $7,028 | $5,937 |
| 50 | $11,163 | $9,443 |
| 60 | $19,150 | $15,943 |
| 70 | $33,325 | $28,093 |
Average Cost of No-Exam Term Insurance Rates by Age
No-Exam Term Life Insurance Rates (Based on a $500,000, 20-Year Policy)
| Age | Gender | Super Preferred | Preferred | Standard |
|---|---|---|---|---|
| 30 | Woman | $174 | $235 | $417 |
| 40 | Woman | $277 | $350 | $641 |
| 50 | Woman | $1,221 | $1,477 | $1,668 |
| 30 | Man | $219 | $292 | $506 |
| 40 | Man | $327 | $421 | $778 |
| 50 | Man | $1,736 | $2,254 | $2,364 |
Average Cost of Term Life Insurance Rates by Health
Term Life Insurance Rates by Health (Based on a $500,000, 20-Year Policy)
Age/Gender |
Super Preferred |
Preferred |
Standard |
| 30 (Woman) | $183 | $221 | $337 |
| 40 (Woman) | $281 | $345 | $502 |
| 50 (Woman) | $641 | $759 | $1,140 |
| 60 (Woman) | $1,656 | $1,891 | $3,031 |
| 70 (Woman) | $8,204 | $8,662 | $10,574 |
| 30 (Man) | $220 | $280 | $406 |
| 40 (Man) | $332 | $414 | $645 |
| 50 (Man) | $817 | $978 | $1,511 |
| 60 (Man) | $2,361 | $2,653 | $4,232 |
| 70 (Man) | $9,297 | $10,934 | $14,862 |
Average Cost of Life Insurance by Term Length
Term Life Insurance Rates by Term Length (Based on a $500,000 Policy for a 40-Year-Old Applicant in the Super Preferred Class)
| Term Length | Average Annual Rate for Men | Average Annual Rate for Women |
|---|---|---|
| 10 years | $201 | $179 |
| 20 years | $332 | $281 |
| 30 years | $576 | $459 |
What Factors Are Considered in Determining Life Insurance Rates?
Life insurance premiums are primarily based on life expectancy, with younger and healthier individuals generally paying lower premiums. Insurers evaluate applicants using categories like super preferred, preferred, and standard, taking into account their risk class to calculate premiums.
Each insurance company has its own underwriting process and weighs factors differently, making it beneficial to compare quotes from multiple insurers. The following are the main factors that insurers assess when setting life insurance rates:
- Age: Generally, younger individuals pay less for life insurance as age affects life expectancy. Buying life insurance at an earlier age is advisable to secure lower rates, as rates tend to increase based solely on age.
- Gender: Women typically pay less than men of the same age and health due to longer life expectancies. According to the Centers for Disease Control and Prevention, life expectancy in the U.S. is 79.9 years for women and 74.2 years for men.
- Smoking Status: Smokers are considered at higher risk due to the increased likelihood of developing health issues, leading to higher life insurance premiums for smokers.
- Health: Insurers assess pre-existing conditions, blood pressure, cholesterol levels, and factors like height and weight to evaluate an individual's overall health.
- Family Medical History: Insurers may inquire about a family history of serious health conditions such as heart disease, cancer, or diabetes.
- Driving Record: A history of DUIs, DWIs, or major traffic violations may result in higher rates as insurers perceive such individuals as higher risk.
- Occupation and Lifestyle: Hazardous or high-risk occupations, such as bomb squad members or race car drivers, and engaging in risky activities like skydiving can lead to higher premiums.
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What Factors Do Not Affect Your Life Insurance Premium?
These factors do not influence the rate you are offered for life insurance:
- Ethnicity, race, and sexual orientation: Insurance providers cannot discriminate based on these aspects of diversity, although they do consider factors such as age and gender.
- Credit score: Your credit score itself does not affect your life insurance premium. However, insurers may review your credit history from the past seven years. If you have a history of bankruptcy, they may consider you to have a higher mortality risk, which could impact your premiums.
- Marital status: Unlike some auto insurance companies, life insurers do not differentiate rates based on marital status.
- Number of life insurance policies: Having multiple life insurance policies does not directly impact the rate. However, if you wish to purchase a significant amount of coverage across multiple policies, you may need to provide justification for doing so.
- Number of beneficiaries: Whether you name one beneficiary or multiple beneficiaries for your life insurance policy, it does not influence your premium rate.
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1. What factors determine life insurance rates?
Life insurance rates are determined by various factors, including age, gender, health condition, occupation, lifestyle choices (such as smoking or drinking), the amount of coverage desired, and the type of policy chosen.
2. Does my age affect life insurance rates?
Yes, age is a significant factor in determining life insurance rates. Generally, the younger you are when you purchase a policy, the lower your premiums will be.
3. How does my health condition impact life insurance rates?
Your health condition plays a crucial role in life insurance rates. Insurance companies typically require applicants to undergo a medical examination to assess their health.
4. Can my occupation affect life insurance rates?
Yes, your occupation can impact life insurance rates. Certain professions that involve higher risks, such as pilots, firefighters, or deep-sea divers, may be considered more hazardous by insurance companies.
5. Are life insurance rates the same for men and women?
No, life insurance rates can differ based on gender. Historically, women have had lower rates compared to men due to their longer life expectancy.
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