How much does life insurance cost in 2025?

For a $500,000 20-year term life policy, the average monthly cost for a healthy 30-year-old male is $30. The cost is even lower for a female with a similar profile – just $23 per month. That is just $1 – or less – per day.¹

Getting an actual quote is the best way to start learning about life insurance rates. That’s because every policy is tailored to the person insured, and factors like age, lifestyle, and policy terms will all impact your monthly premiums. So try our calculator to see how much you could pay – it may well be less than you think.

Average rates for life insurance by type of policy

Costs for 20-year term life insurance by age and gender

Data source: Policy Genius (Rate information valid as of 10/1/2024)²

Costs for whole life insurance by age and gender

Data source: Policy Genius (Rate information valid as of 10/1/2024)

Risk class can have a big effect on rates

The difference in term life insurance premiums for smokers and nonsmoker:

Data source: Policy Genius (Rate information valid as of 10/1/2024)

Factors that affect life insurance rates

1. Type of policy

Generally speaking, term life policies are less expensive than permanent whole and universal life policies. That's because term life insurance doesn't have wealth-building cash value and only provides temporary protection. Most term life policies never provide a death benefit payout, because the term ends, or policy is allowed to lapse before the insured policyholder dies. By contrast, a permanent whole life policy is guaranteed to pay a death benefit as long as premiums are current.³

2. Policy coverage amount

For obvious reasons, a higher coverage amount (also called face value) always costs more than the same type of policy with a lower coverage amount. However, the cost per $1,000 of coverage also tends to go down. In other words, the more coverage you get, the less you pay per $1,000 in coverage: In the first chart above, $250,000 of 20-year term life for a 20-year-old woman costs 6¢ per $1,000 — but $1,000,000 coverage cost just 3.4¢ per $1,000 of insurance protection.

3. Age

As you get older, life expectancy goes down, and the risk of developing a health issue goes up — so the likelihood of an insurance payout rises. As a result, if you apply for a life insurance policy at age 50, it will cost more than the same type of policy at 30.⁴

4. Risk level

Insurance providers consider your overall risk level, assessing factors beyond age, such as:

• Current and recently diagnosed health conditions

• Occupation – those in a high-risk work environment, such as an off-shore oil rig, often pay higher rates

• Smoking and vaping status

• Driving record

• High-risk hobbies, such as scuba diving or skydiving

5. Term length

The longer your life insurance policy term, the higher your premium will likely be. That's because it's more likely that the insurance provider will need to pay the death benefit. So for example, a 10-year term life insurance policy tends to cost less than a 20-year term policy for the same amount. And both will have lower premiums than a permanent whole or universal policy that pays a death benefit no matter what age the insured passes away.

6. Medical underwriting

Most life insurance policies require a medical exam as part of the “underwriting” or approval process. It’s typically a simple exam that involves a nurse or CNA coming to your home to run basic tests like drawing blood and taking your vitals.⁵

However, some types of policies don’t include medical underwriting or medical exams. These are often called “guaranteed issue” or “simplified issue” policies. Since the insurance company has less understanding of the health risks involved, premiums increase as a result.⁶

7. Family health history

Part of the medical underwriting process also involves asking about family health history. If there are conditions with genetic components in your family line — such as cancer, heart disease, and diabetes — that’s likely to impact your life insurance premiums.

8. Gender

You may have noticed that all of the above rate charts break out separate costs for women and men — and that women consistently pay less than men. Women enjoy lower average rates because they have a statistically proven tendency to live longer than men.⁷

Factors that don’t impact life insurance rates

While there are a variety of factors that impact your life insurance premium rates, there are also common misconceptions about which factors influence your rates. Here are a few examples of factors that do not typically impact premium costs:

• Credit score

• Ethnicity

• Religion

• Income

How to get cost-efficient rates on life insurance

It’s important to remember that life insurance tends to be more cost-efficient than most people think. So the fastest, easiest way to see how cost-efficient coverage can be is to get an online quote. If you get cost-efficient rates on life insurance policies, you can try the following:

• Control the factors you can: You can’t change family history, but you can stop smoking, for example, to get a lower rate.

• Look at policies through your workplace: Many employers offer life insurance benefits. Some people use these lower-cost policies as their primary life insurance, while others use them to supplement other policies.⁸

• Work with a financial professional: Financial professionals can help you shop around to find policies with the most competitive rates.

• Apply as soon as possible: The cost of life insurance always rises with age — your rates for a given type of policy and coverage amount will never be lower than they are now.

How much life insurance do you actually need?

It’s important to balance the coverage’s benefits against monthly costs to ensure ongoing affordability. There are several ways to determine how much life insurance coverage will benefit you and your loved ones most, including:

• Consider the human life value method: This method looks at what you’re making now and what you expect to earn in the future, with the goal of income replacement in the event of death.⁹ Our life insurance calculator uses this method.

• Consider multiplying your income by 10: This will account for ten years of lost income. Someone making $75,000 a year should consider a $750,000 policy under this method.

• Consider multiplying your income by 10 and account for college costs: Similar to the method above, this strategy multiplies your income by 10 and then add estimated college costs for each child.

• Consider the DIME formula: This accounts for Debt, Income, Mortgage, and Education. You multiply your income by the number of years you think your family will need support based on debt, mortgage, and education expenses.¹⁰

Get started by talking to a financial professional

There are so many life insurance options to choose from. Do you want term life or a permanent life insurance option? Which riders (policy options) should you consider?¹¹ How much coverage will help make your family feel confident? These are all questions that a financial professional can help answer. They’ll assess your current financial situation— including income, goals, and obligations— to make recommendations that best meet your needs.

If you have a financial professional you trust, reach out and ask them. If you don’t, Guardian can connect with a local financial professional who can help.