Term life insurance rates for 2025
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Looking to get a term life insurance policy? It can be a great way to help protect your family. It can be cost-effective life insurance, typically providing a larger death benefit payout for your money. It’s also simple to understand and easy to purchase. There are also two main drawbacks: Term protection is temporary and doesn't build cash value.
How much is term life insurance likely cost you?
The average annual term life insurance premium for someone in their 30s in good health is approximately $360 per year.1 If that’s less than you thought, you’re not alone. In fact,
a study by Forbes Advisor showed that 82% of Americans over age 25 overestimate the cost of life insurance.2 But as you’ll see, it may be possible for a 30-year old female in good health to get $1,000,000 of life insurance for under $50 a month.
Monthly life insurance rates for a $1,000,000 20-year term policy from Guardian <h3>
Female | Male | |
|---|---|---|
Age 30 | $48 | $61 |
Age 40 | $73 | $92 |
Age 50 | $167 | $234 |
Monthly premium cost $1,000,000 of 20-year term life coverage, for healthy non-smoker applicants.3
What factors can affect premium rates?
Coverage amount
Generally, the higher the coverage amount (death benefit) the higher the premium. That said, a higher death benefit can be more cost-effective because the cost per $1,000 of coverage decreases as coverage levels increase.
Term length
Term life insurance policies with longer terms usually have higher premiums but can be more cost effective in the long run. For example, if you need coverage for 20 years, a single 20-year policy will almost always cost less than two consecutive 10-year policies: even though your rates will be lower for the first 10-year term policy, the policy you get a decade later will likely cost significantly more due to age and the likelihood of developing a health issue that affects your rates.
Life expectancy
Life expectancy is a key factor used to determine rates. So, life insurance companies consider your age, and evaluate your health with questions and, typically, a medical exam. Other items are also considered, including lifestyle and gender: Risky habits and dangerous hobbies (e.g., tobacco use and scuba diving) can make life insurance more costly. Conversely, women tend to live longer, so they generally enjoy lower rates.
How much coverage do you need?
Here are two quick ways to get a decent estimate, but if you’d like more guidance Guardian can help:
Multiply your income by 10
Take your annual income and add a "0" at the end. For example, $50,000 salary equals $500,000 coverage.
Multiply your income by 10 – and add college for each child
Use the number above and add between $100,000 and $150,000 per child.
Should you consider a "no health exam" policy?
Some life insurance policies don't require a medical exam or even health questions. These "guaranteed acceptance" life insurance policies tend to offer limited death benefits and can cost much more per $1,000 of coverage. So, while it can be an option for seniors who want to cover their final expenses, it’s usually not a good solution for younger, healthier wage-earners who want enough life insurance coverage to help provide for a family.
What kind of policy options or riders should you look for?
A term policy can last up to 30 years, and a lot can happen in that time. Your health could change. You could lose your ability to work. Consider these coverage options, or riders, that can add protection and benefits to your base policy.4
Term conversion rider | Waiver of premium rider5 |
|---|---|
This lets you convert to a permanent whole life policy without a new medical exam, even if your health takes a turn for the worse. All Guardian Level Term policies provide this feature for the first five years, and you can add an Extended Conversion Rider (ECR) which lets you convert for the entire length of the term. | If you become disabled and can't work, this can pay your premiums and help keep your policy in effect. Guardian's version of the rider includes a 7-year "own-occupation" definition, which means that even if you're able to do some work, payments may be waived if you can't work in your profession or occupation. |
Where can you get a term life policy?
At work
If group term life insurance is available to you through work, that can be a place to start, and you may enjoy favorable group rates. However, the amount of coverage offered may be limited. Fortunately, it’s easy to get more.
Online
If you don't have workplace coverage or want to supplement it, you can shop for term life coverage online. Many life insurance companies, including Guardian, make it simple to get a quote, compare rates, and apply for coverage online.
With a financial professional
You may also want to speak with an experienced professional who will dig deep to learn more about your situation and help you decide how much coverage you need. They can also tell you about term vs whole life insurance options, and guide you to the solution that best fits your needs. How do you find such a professional? Ask a friend or colleague for a recommendation. Or, we can put you in touch with a Guardian financial professional.