Luis Pazos 
{In a recent study by AIG Life Insurance IQ, it was found that 51% of Americans either don’t know if they have life insurance or simply don’t have any at all. Even though 70% understand that life insurance can secure their family’s financial future, many remain uninsured. What most people don’t realize is that life insurance is most affordable when you’re young and healthy. You’re never going to be younger or healthier than you are right now, so your premiums could be at their lowest.
If you have health conditions or aren’t as young anymore, it’s still wise to get life insurance now rather than postponing it and facing higher costs later. Whether it’s your first policy or a second one due to changing needs, take some time to explore the options out there.
How to Get Life Insurance Quotes
You can gather quotes from different insurance companies by visiting their websites, but using a life insurance broker or a rate-shopping marketplace can be easier. Although the underwriting process can be long and a bit of a hassle, companies like Bestow or Ladder offer quicker and more convenient coverage options.
Compare Average Rates
Besides gathering quotes, it’s essential to compare rates. Let’s consider term life insurance, which is generally cheaper than whole life insurance, usually costing around 10% less for the same death benefit. Its coverage can also be adjusted based on life events. According to S&P Global Market Intelligence, the average life insurance premium across all types is just over $990.
For a detailed comparison, we’ll use data from an insurance marketplace called Quotacy. We’ll look at term policies with death benefits of $250,000, $500,000, and $1 million, across different term lengths (10, 20, and 30 years) at ages 25, 35, 45, 55, and 65.
Term Life Insurance Quotes for Males
Age at Policy Purchase | Death Benefit | 10-year Term Monthly Premium | 20-year Term Monthly Premium | 30-year Term Monthly Premium
25 | $250,000 | $9.75 | $12.26 | $17.72
25 | $500,000 | $13.64 | $19.11 | $28.68
25 | $1 million | $20.04 | $30.59 | $48.25
35 | $250,000 | $9.77 | $13.45 | $21.09
35 | $500,000 | $14.06 | $21.24 | $35.24
35 | $1 million | $21.92 | $33.99 | $64.51
45 | $250,000 | $16.81 | $26.42 | $42.88
45 | $500,000 | $27.62 | $46.44 | $79.38
45 | $1 million | $46.81 | $87.87 | $151.21
55 | $250,000 | $37.48 | $61.26 | $120.71
55 | $500,000 | $67.57 | $114.74 | $232.23
55 | $1 million | $123.24 | $221.61 | $457.05
65 | $250,000 | $101.76 | $199.16 | Custom Quote Only*
65 | $500,000 | $191.29 | $385.08 | Custom Quote Only*
65 | $1 million | $362.69 | $743.72 | Custom Quote Only*
*Note: 30-year policies for 65-year-olds require a custom quote due to the high likelihood of a death benefit payout.
Term Life Insurance Quotes for Females
Age at Policy Purchase | Death Benefit | 10-year Term Monthly Premium | 20-year Term Monthly Premium | 30-year Term Monthly Premium
25 | $250,000 | $8.61 | $10.79 | $14.68
25 | $500,000 | $11.22 | $15.72 | $22.73
25 | $1 million | $15.81 | $23.05 | $37.82
35 | $250,000 | $8.92 | $11.94 | $18.28
35 | $500,000 | $11.96 | $17.87 | $29.69
35 | $1 million | $18.92 | $29.91 | $52.15
45 | $250,000 | $15.15 | $21.33 | $33.51
45 | $500,000 | $24.22 | $37.41 | $61.32
45 | $1 million | $38.24 | $67.91 | $116.36
55 | $250,000 | $28.21 | $45.38 | $91.54
55 | $500,000 | $50.05 | $84.39 | $176.50
55 | $1 million | $90.94 | $158.86 | $330.74
65 | $250,000 | $64.97 | $134.30 | Custom Quote Only*
65 | $500,000 | $122.14 | $257.70 | Custom Quote Only*
65 | $1 million | $223.86 | $485.77 | Custom Quote Only*
Key Takeaways from Term Life Insurance Quotes
The quotes show several factors that affect premiums:
- Men typically pay higher premiums than women.
- The difference in premiums between men and women increases with age.
- Longer policy terms and purchasing at an older age lead to significantly higher premiums.
- Custom quotes are needed for 30-year policies for 65-year-olds due to increased risk factors with age.
Other Factors That Affect Life Insurance Premiums
While age and gender are basic factors, several others also come into play:
Your Health
Health conditions can significantly affect your premiums. Minor conditions like controlled hypertension may cause a slight increase, while serious conditions like diabetes, heart, or kidney disease can lead to higher rates. Past health issues or battles with diseases like cancer might also influence your premium based on your specific situation, and you might need a medical exam. The timing of health issues is also critical; a condition from a decade ago will have a lesser impact than a recent one.
Family Health History
Insurers often inquire about your immediate family’s health history, especially concerning major conditions like cancer or heart disease before age 70. This aspect, although beyond your control, can influence your premium.
Smoking and Tobacco Use
Smoking dramatically increases life insurance premiums. For example, comparing premiums for smokers and non-smokers for a $500,000 20-year term life policy shows smokers pay significantly more.
Age at Policy Purchase | Male Nonsmoker | Male Smoker | Female Nonsmoker | Female Smoker
25 | $19.11 | $53.33 | $15.72 | $34.58
35 | $21.24 | $84.14 | $17.87 | $68.33
45 | $46.44 | $205.27 | $37.41 | $150.44
55 | $114.74 | $471.74 | $84.39 | $333.19
65 | $385.08 | $1131.34 | $257.70 | $844.89
Smoking’s impact is evident, significantly raising premiums due to the increased health risks. The CDC states smoking causes over 480,000 deaths annually, doubling or quadrupling the risk of heart disease and stroke, and greatly increasing the risk of lung cancer and chronic obstructive pulmonary disease. Life insurance companies treat all tobacco use, including occasional smoking and vaping, similarly.
Other Behaviors That Affect Rates
Excessive alcohol consumption and illicit drug use also raise premiums due to increased death risk. These habits might be revealed through DUI/DWI records or blood tests.
Your Occupation
Certain high-risk occupations lead to higher premiums. Jobs like logging, fishing, and roofing involve higher risks than average occupations.
Risk Factors Affecting Your Life Insurance Premium
- High-risk hobbies like skydiving or racing.
- Poor driving record with multiple violations.
- Poor credit history, linked to higher mortality rates.
- Criminal record, especially recent or severe offenses.
Whole Life Insurance Rates
Whole life insurance, unlike term life, is permanent and includes a cash value component. Your premium remains the same, but it’s generally 10-15 times higher than term life insurance for equivalent coverage. This is due to the cash value accumulation part of the premium.
Purchasing Life Insurance
When applying for life insurance, provide as many details about your health, occupation, hobbies, and family health history as possible. Accurate information ensures a reliable premium quote. If you have specific health or risk factors, choose an insurer that caters to those conditions.
It’s recommended to start with term life insurance, which is more affordable, especially if you have a young family. Term life offers adjustable coverage as your needs change.
After getting a quote and choosing a policy, you’ll typically need to complete a detailed application, possibly including a medical exam. Once you make the first payment, your policy goes into effect, pending the insurer’s approval.
Finding the Right Life Insurance Policy
Life insurance is flexible, allowing you to choose coverage amounts and terms, and sometimes even adjust premiums. Term life insurance is often the best choice as it’s less expensive, freeing up cash for other investments or expenses. Remember to shop around to get the most coverage for the best price.
Life Insurance FAQs
- Financial advisors suggest having at least 10 times your annual salary in coverage.
- Employer-sponsored life insurance usually covers one or two times your salary and is tied to your job, so consider additional coverage.
- Even if you have no dependents, life insurance can cover final expenses and ensure financial support for dependents.
- If you don’t qualify for traditional life insurance, consider a guaranteed acceptance policy, though it generally provides lower coverage for a higher premium.
