Life insurance can safeguard your family’s quality of life if you pass away, so consider adding it to your financial portfolio. if you’re worried you won’t be able to afford it, check the actual quotes first.
We looked at average life insurance rates based on age, term length, and payment amount. Your exact cost will depend on your health and age, among other things, but our overview of average life insurance rates will give you an idea of what you can expect to pay.
Reading: How much does term insurance cost
how life insurance rates are determined
Life insurance companies really want to determine one thing: how long are you likely to live?
The information they collect helps estimate an answer to that tricky question and calculate the cost of your policy.
What you pay for life insurance depends on the type of life insurance you buy, how much coverage you get, your age and health, and the company’s underwriting procedures, among other things. Each life insurance company has its own system for pricing a policy, so comparing rates between multiple companies will help you find the one that best suits your needs and budget.
Here are 10 factors that can influence life insurance rates.
- age: one of the most important factors when calculating rates. As you get older, the likelihood that the insurer will have to pay out increases, leading to higher quotes.
- gender: Women have a longer life expectancy, so they will typically pay less than men of the same age and health status.
- height and weight: If your height and weight are within certain limits, you will receive better rates than if you are considered overweight or underweight, which could cause health problems.
- Past and current health: Your health status significantly affects your rates. pre-existing conditions are taken into account to determine if they will shorten your life expectancy.
- family medical history (siblings and parents): If your family medical history shows serious illnesses, especially hereditary diseases, you may have to pay higher contributions.
- nicotine and/or marijuana use: Smokers, other nicotine users (including vaping and patch), and marijuana users are at increased risk of developing cancer and respiratory diseases, for which will be quoted higher rates.
- history of substance abuse: Drug or alcohol abuse can shorten your life expectancy, resulting in higher life insurance rates.
- Driving history (particularly DUIs and speeding tickets): Driving under the influence, driving at high rates of speed and/or causing accidents makes you a higher risk and results in higher fees.
- Credit: Credit is a factor in some risk scores used by life insurers.
- criminal record: Having a felony on your record can affect your ability to get a policy. even if you can buy a policy, a felony will usually increase your costs or result in a denial.
Beyond the factors above, a major factor influencing what you’ll pay is the type of life insurance policy you choose.
Life insurance comes in two main types: term life insurance and permanent life insurance. Permanent life insurance has the advantage of lasting until you die, but it is generally more expensive than other types of life insurance. term life insurance is a more popular option due to its affordability.
average term life insurance rates by age
It’s wise to buy life insurance when you’re younger, before rates go up and policy options go down. With each passing year, your life insurance quotes will increase, even if you are in excellent health. By waiting to buy life insurance, you also risk developing a health condition that will trigger an even higher rate when you buy a policy.
Term life insurance allows you to lock in fixed rates for a set period of time, such as 10, 20 or 30 years.
We see here how term life insurance rates for people over 70 years old cost more than 1000% more than a policy purchased by a 30 year old. It’s also worth noting that a 30-year term is generally not available to people age 60 and older.