Average term life insurance rates by age, gender and health

Term insurance protects the financial health of your family at premium rates that are cheaper than whole life insurance.

As the name suggests, term insurance provides coverage for a set period of time – such as 10, 20 or 30-year periods and pays out a specified amount if you die during the term. It has no cash value and if you outlive your policy, your beneficiaries won’t be entitled to receive any money.

Whole life insurance, on the other hand, lasts your entire life and can build cash value. It’s a more comprehensive form of insurance and as a result is typically more expensive.

“The primary motivation for any type of life insurance is protection of your loved ones,” says Kevin Lynch, an assistant professor insurance at The American College of Financial Services.

“Secondary reasons can be cash value creation, educational funding, debt retirement and protection for your children until adulthood is achieved.”

Choosing which is right for you, comes down to a variety of factors including whether you can afford the higher premiums that come with whole life, or whether you just need coverage for a specified period of time – say until your children are old enough to join the workforce and support themselves. 

What factors influence premium rates?

The cost of term life insurance, like most forms of insurance, goes up as you age. It also varies depending on your gender, health and whether you smoke. Females will almost always pay less than males and smokers can expect to pay more than double the rates of non-smokers even if they are otherwise in good health. 

At 45-years old, the average annual cost of a $500,000 policy for a non-smoking female in good health is about $389. The same policy for a 45-year-old male is $458.

Meanwhile, a 45-year-old female who smokes and is in good health can expect to pay about $1,276 per year for the same policy and a similar male will pay $1,604.

In both cases, smokers pay more than three times the amount a non-smoker will pay.

The other key factor insurance companies evaluate is your general health. When applying for insurance, the insurer will assess what rating to assign you based on a variety of criteria. This is likely to include a physical exam and blood samples carried out by a nurse or doctor and is paid for by the insurance company. 

They will look at health factors such as your blood pressure, your weight, any history of mental illness, medical conditions such as diabetes, and whether you have a risky occupation or risky family history. For example, if one of your parents died early due to heart disease, the insurer may assess you as a higher risk, even if you show no signs of heart disease.

The insurer will then assign you a health rating based on your evaluation. People in excellent health generally receive a Preferred Plus health classification — or the best possible health classification — and are offered the cheapest rates. Those with factors that deem them to be a greater risk, such as existing health conditions, will be assigned a lower category of Standard Plus or Standard.

Here’s how health classifications work for non-smokers:

Preferred plus: If you are rated in this class, it means your health is excellent and you live a low-risk lifestyle. This means the carrier deems you to pose the lowest risk and rewards you with cheaper premiums.

Preferred: You pose a slightly higher risk than someone rated Preferred Plus, but are still in excellent health.

Standard Plus: Also known as Regular Plus. People in average health generally receive this rating. Additional risk factors such as a parent who died young or a risky occupation may also earn you this rating.

Standard: Also known as Regular. 

Below you’ll find the average rates for term insurance for a variety of ages, rating categories and smoking status so that you know what to expect when you’re buying term life insurance.

Average 10-year term life insurance annual rates for a $500,000 policy

This is one of the most affordable term insurance rates and may be a good choice if you require a limited amount of coverage or simply cannot afford higher premiums.

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$187	$202	$389	$790	$1,935
Preferred Plus	$152	$165	$318	$657	$1,623
Regular	$309	$341	$638	$1,307	$3,116
Regular Plus	$240	$263	$485	$1,008	$2,365

Male

Health Category	25	35	45	55	65
Preferred	$226	$235	$458	$1,045	$3,010
Preferred Plus	$183	$189	$367	$867	$2,458
Regular	$381	$407	$790	$1,822	$4,726
Regular Plus	$286	$303	$589	$1,342	$3,662

For smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$504	$606	$1,276	$2,665	$6,283
Preferred Plus	$494	$603	$1,002	$2,047	$5,368
Regular	$654	$839	$1,778	$3,708	$8,376

Male

Health Category	25	35	45	55	65
Preferred	$656	$757	$1,604	$3,767	$9,605
Preferred Plus	$527	$646	$1,150	$2,841	$6,698
Regular	$877	$1,056	$2,280	$5,196	$12,185

Average 10-year term rates for a $750,000 policy

This is once again a very affordable policy, but provides more cash to your beneficiaries should you die during the term.

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$243	$269	$548	$1,151	$2,869
Preferred Plus	$190	$214	$444	$952	$2,403
Regular	$410	$452	$883	$1,882	$4,620
Regular Plus	$325	$361	$693	$1,477	$3,512

Male

Health Category	25	35	45	55	65
Preferred	$304	$319	$649	$1,533	$4,475
Preferred Plus	$239	$249	$517	$1,268	$3,643
Regular	$511	$546	$1,097	$2,634	$7,008
Regular Plus	$395	$419	$848	$1,978	$5,458

For smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$722	$870	$1,877	$3,959	$9,390
Preferred Plus	$713	$876	$1,475	$3,042	$8,023
Regular	$928	$1,172	$2,544	$5,412	$12,457

Male

Health Category	25	35	45	55	65
Preferred	$948	$1,103	$2,363	$5,612	$14,373
Preferred Plus	$762	$941	$1,696	$4,232	$10,018
Regular	$1,234	$1,492	$3,271	$7,618	$18,086

Average 10-year term rates for a $1 million policy

Even though this provides double the cash as the $500,000 policy, a $1 million policy will not cost twice as much. Here are the average rates:

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$279	$313	$667	$1,469	$3,582
Preferred Plus	$218	$249	$527	$1,195	$3,022
Regular	$488	$553	$1,118	$2,405	$5,763
Regular Plus	$383	$434	$855	$1,865	$4,379

Male

Health Category	25	35	45	55	65
Preferred	$355	$373	$788	$1,896	$5,634
Preferred Plus	$270	$291	$617	$1,593	$4,660
Regular	$629	$672	$1,389	$3,360	$8,984
Regular Plus	$472	$512	$1,054	$2,458	$6,956

For smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$881	$1,084	$2,352	$4,974	$11,903
Preferred Plus	$703	$874	$1,606	$3,487	$9,453
Regular	$1,132	$1,455	$3,215	$6,835	$15,566

Male

Health Category	25	35	45	55	65
Preferred	$1,136	$1,336	$3,022	$7,076	$17,644
Preferred Plus	$789	$969	$1,900	$4,959	$11,818
Regular	$1,496	$1,839	$4,187	$9,731	$23,163

Average 20-year term rates for a $500,000 policy

Age will play an increasingly larger factor in determining rates for a 20-year policy. A 25-year-old purchasing a 20-year term will pay just a little bit more for the 10-year extension. But by the time you reach 65, rates will more than double.

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$246	$298	$574	$1,290	$4,165
Preferred Plus	$208	$243	$485	$1,093	$3,448
Regular	$402	$493	$971	$2,123	$6,190
Regular Plus	$324	$381	$738	$1,634	$5,073

Male

Health Category	25	35	45	55	65
Preferred	$311	$350	$741	$1,793	$5,999
Preferred Plus	$254	$279	$607	$1,497	$5,075
Regular	$494	$589	$1,248	$3,046	$9,324
Regular Plus	$381	$440	$951	$2,287	$7,374

For smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$647	$927	$1,997	$4,413	$11,722
Preferred Plus	$656	$808	$1,577	$3,867	$9,543
Regular	$843	$1,254	$2,739	$5,868	$14,573

Male

Health Category	25	35	45	55	65
Preferred	$842	$1,121	$2,630	$6,291	$15,873
Preferred Plus	$741	$917	$1,895	$5,168	$11,357
Regular	$1,123	$1,561	$3,603	$8,207	$18,624

Average 20-year term rates for a $750,000 policy

You’ll pay a little bit more for this additional coverage but not proportionately more.

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$335	$411	$825	$1,901	$6,215
Preferred Plus	$276	$332	$698	$1,613	$5,141
Regular	$536	$668	$1,361	$3,088	$9,238
Regular Plus	$450	$536	$1,073	$2,417	$7,575

Male

Health Category	25	35	45	55	65
Preferred	$433	$489	$1,075	$2,654	$8,965
Preferred Plus	$348	$386	$880	$2,212	$7,581
Regular	$670	$805	$1,759	$4,460	$13,894
Regular Plus	$537	$626	$1,392	$3,396	$11,027

For smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$931	$1,353	$2,962	$6,583	$17,549
Preferred Plus	$955	$1,183	$2,337	$5,771	$14,286
Regular	$1,181	$1,777	$3,940	$8,667	$21,824

Male

Health Category	25	35	45	55	65
Preferred	$1,224	$1,648	$3,915	$9,399	$23,776
Preferred Plus	$1,083	$1,347	$2,814	$7,724	$17,007
Regular	$1,580	$2,215	$5,188	$12,158	$27,702

Average 20-year term rates for a $1 million policy

Once again, a $1 million policy will pay double the cash to your beneficiaries as a $500,000 policy, but it will come with noticeably higher rates. A Preferred 45-year-old non-smoking female, for example, can expect to pay about $1,052 a year for a $1 million policy, versus $574 for the $500,000 policy.

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$395	$507	$1,052	$2,462	$7,954
Preferred Plus	$321	$403	$868	$2,059	$6,564
Regular	$652	$833	$1,725	$3,968	$11,716
Regular Plus	$537	$655	$1,361	$3,101	$9,710

Male

Health Category	25	35	45	55	65
Preferred	$539	$617	$1,370	$3,421	$11,429
Preferred Plus	$422	$471	$1,120	$2,867	$9,749
Regular	$839	$1,024	$2,223	$5,751	$17,473
Regular Plus	$665	$808	$1,776	$4,328	$14,377

For smokers (Age 25-65)

Female

Health Category	25	35	45	55	65
Preferred	$1,178	$1,700	$3,782	$8,503	$22,489
Preferred Plus	$1,064	$1,321	$2,746	$7,154	$17,860
Regular	$1,497	$2,272	$5,083	$11,129	$27,380

Male

Health Category	25	35	45	55	65
Preferred	$1,566	$2,112	$5,054	$12,031	$30,214
Preferred Plus	$1,235	$1,530	$3,373	$9,633	$21,214
Regular	$1,990	$2,825	$6,682	$15,715	$35,623

Average 30-year term rates for a $500,000 policy

When you purchase a 30-year term insurance policy, the carrier is taking on a substantially higher risk that you could die over the length of coverage. At the same time, however, they are gaining a customer who will be paying premiums for a very long period.

Here are average annual rates for a 30-year, $500,000 policy.

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55
Preferred	$362	$467	$935	$2,575
Preferred Plus	$303	$393	$802	$2,250
Regular	$589	$750	$1,508	$3,799
Regular Plus	$487	$599	$1,235	$3,247

Male

Health Category	25	35	45	55
Preferred	$468	$561	$1,271	$3,698
Preferred Plus	$379	$474	$1,053	$3,143
Regular	$785	$941	$2,094	$4,930
Regular Plus	$596	$735	$1,646	$4,426

For smokers (Age 25-65)

Female

Health Category	25	35	45	55
Preferred	$981	$1,399	$3,183	$6,869
Preferred Plus	$1,007	$1,245	$2,480
Regular	$1,262	$1,885	$4,087	$8,508

Male

Health Category	25	35	45	55
Preferred	$1,321	$1,875	$4,458	$9,210
Preferred Plus	$1,207	$1,492	$3,107
Regular	$1,708	$2,407	$5,588	$10,840

Average 30-year term rates for a $750,000 policy

Age plays an increasingly larger factor over this length and insurance carriers factor that in. On average a $750,000 30-year term policy for a Preferred 45-year-old non-smoking female is $1,371 per year versus $548 for a 10-year policy for the same person. 

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55
Preferred	$509	$661	$1,371	$3,830
Preferred Plus	$423	$559	$1,167	$3,346
Regular	$820	$1,044	$2,156	$5,667
Regular Plus	$695	$864	$1,817	$4,836

Male

Health Category	25	35	45	55
Preferred	$665	$804	$1,875	$5,515
Preferred Plus	$537	$677	$1,543	$4,686
Regular	$1,105	$1,326	$3,003	$7,363
Regular Plus	$859	$1,068	$2,434	$6,606

For smokers (Age 25-65)

Female

Health Category	25	35	45	55
Preferred	$1,429	$2,065	$4,746	$10,268
Preferred Plus	$1,482	$1,838	$3,691
Regular	$1,825	$2,729	$5,970	$12,734

Male

Health Category	25	35	45	55
Preferred	$1,939	$2,771	$6,663	$13,780
Preferred Plus	$1,781	$2,209	$4,631
Regular	$2,476	$3,501	$8,177	$16,234

Average 30-year term rates for a $1 million policy

A $1 million policy will provide additional comfort for your loved ones, but it will come at a substantially higher cost. And heaven forbid you are a smoker.

A 55-year-old male smoker rated as Standard can expect to pay an average annual premium of $21,608 for a 30-year term policy. And no, that is not a typo.

For non-smokers (Age 25-65)

Female

Health Category	25	35	45	55
Preferred	$618	$833	$1,764	$4,896
Preferred Plus	$505	$702	$1,524	$4,248
Regular	$1,001	$1,308	$2,748	$7,321
Regular Plus	$830	$1,070	$2,259	$6,132

Male

Health Category	25	35	45	55
Preferred	$825	$1,022	$2,388	$7,113
Preferred Plus	$657	$859	$1,958	$6,110
Regular	$1,345	$1,666	$3,831	$9,502
Regular Plus	$1,066	$1,343	$3,086	$8,419

For smokers (Age 25-65)

Female

Health Category	25	35	45	55
Preferred	$1,827	$2,661	$6,145	$13,451
Preferred Plus	$1,748	$2,176	$4,522
Regular	$2,335	$3,479	$7,787	$16,879

Male

Health Category	25	35	45	55
Preferred	$2,514	$3,584	$8,713	$18,077
Preferred Plus	$2,147	$2,670	$5,757
Regular	$3,196	$4,532	$10,660	$21,608

How to decide which term policy is right for you

Experts recommend getting coverage that is 10 to 15 times your income, however, deciding which length of term policy and the coverage amount to choose will come down to a variety of personal factors. 

Your finances will have a big influence on how much coverage you get. If you don’t have much disposable income, a term insurance policy for a shorter time period, say 10 years, will be the most affordable option. It provides the lowest rates and in 10 years’ time you may be in a higher paying job and better able to afford more coverage. While having coverage is important, you shouldn’t be overspending on coverage and straining your financial health. In the long-term, this will likely lead to a policy lapse.

Just bear in mind that if you need more coverage later on, your premiums will increase as you get older and you may receive a lower health classification if you experience any adverse changes in your health.

Another factor influencing how much coverage you get will be your financial obligations. For instance, if you are a new parent, you might want a 20-year policy to ensure coverage until your children have financial security until they are in college or have their own job. 

However, if one of your children has a disability and you will be supporting them for their entire life, you may want to ensure you have coverage for a longer period. A whole life insurance policy may also be the better option in such a circumstance.

You can also determine how much coverage you need based on your current savings. For example, if you think that you will have amassed enough financial assets by a certain age and your family will no longer need proceeds from insurance by that time, you can get a policy that plans accordingly.

Tips for getting a higher health rating and cheaper premiums

The single biggest thing you can do to get the cheapest rates is stop smoking. In most cases, a smoker will pay more than twice as much as a non smoker for coverage.

A non-smoking male or female who is given a lower Standard rating will still pay less than a smoker deemed to be in excellent health and rated at Preferred Plus.

The next biggest factor is to maintain your health. While many major health conditions are out of your control, pursuing a healthy lifestyle and working on an effective treatment plan will help you get better rates. 

Keeping your weight in a healthy range, drinking in moderation, exercising regularly and choosing not to pursue high-risk hobbies like sky diving, will all help you get a more affordable life insurance premium.

Additionally, compare quotes from multiple insurers to find the best possible rate for your profile.

“It always pays to shop around for any type of insurance, and life insurance is no exception,” says Lynch of The American College.

“Underwriting standards, although sometimes very similar, can differ company to company. Using cancer or heart disease as examples, some companies are very restrictive on those illnesses, while others will give consideration for those in remission or with heart issues that have been remediated.”

Finally, don’t forget to ask about any discounts available. For example, you may be able to get a discount through your trade or alumni association. Additionally, many insurers offer discounts to policyholders for paying their premiums annually rather than monthly. 

Related Articles