By Gayle Sato
Edited by Michelle TipswordHow Does Age Affect My Life Insurance Rate?
Quick Answer
In general, life insurance is more expensive the older you are. Though your premiums typically don’t increase over the life of your policy, your policy may cost more depending on your age when you purchase it.
Age is one of the key factors in determining life insurance premiums. Generally speaking, the older you are, the more you'll pay for life insurance. That's because your mortality risk increases as you age, meaning you have less time to pay into your life insurance and a greater likelihood that your beneficiaries will collect a death benefit.
Here's how age can play a role in what you pay for life insurance.
How Does Age Affect Life Insurance Rates?
Life insurance is more expensive the older you get. Insurance premiums are based, in part, on how long you're likely to pay premiums before you're entitled to a death benefit. The older you are, the closer you are to collecting that payout—and the less time you'll spend paying premiums. In addition to paying more, you may have trouble getting life insurance once you reach a certain age, typically between 75 and 90.
Age is not the only factor that determines your life insurance premium, but it is key. To see how age can impact life insurance rates, see the table below.
Average Monthly Term Life Insurance Rates by Age
Here are the average monthly premiums for a 20-year term life insurance policy for a healthy nonsmoker at ages 20, 30, 40, 50 and 60, according to October 2024 data from Policygenius.
| Age | Gender | $250,000 in Coverage | $500,000 in Coverage | $1 Million in Coverage |
|---|---|---|---|---|
| 20 | Female | $15.01 | $22.65 | $33.63 |
| Male | $19.18 | $30.20 | $47.51 | |
| 30 | Female | $15.17 | $22.98 | $36.90 |
| Male | $18.19 | $29.32 | $48.89 | |
| 40 | Female | $21.66 | $35.27 | $60.65 |
| Male | $25.39 | $42.94 | $75.24 | |
| 50 | Female | $43.92 | $78.29 | $139.50 |
| Male | $56.69 | $102.50 | $188.29 | |
| 60 | Female | $107.83 | $194.16 | $354.51 |
| Male | $149.38 | $268.04 | $499.98 |
Source: Policygenius
Other Factors That Affect Life Insurance Rates
In addition to age, other factors that affect life insurance rates include gender, health, lifestyle, policy type and coverage. Here's how each of these may impact your life insurance premiums:
- Age: Your premium may be lower if you buy your policy at a younger age.
- Gender: Women generally pay lower premiums based on a longer life expectancy: 81.1 years versus 75.8 years for men, according to the Centers for Disease Control and Prevention.
- Health: Chronic health conditions (such as high blood pressure or diabetes), cancer or a disability that may shorten your life may all contribute to higher premiums. Some insurance policies require a medical exam.
- Family medical history: If a serious illness or hereditary disease runs in your family, insurers may take that into account when setting your premiums.
- Lifestyle: Insurers may consider lifestyle factors like smoking or heavy drinking, as well as risky hobbies like race car driving, when determining your premium.
- Occupation: A high-risk occupation like logging, roofing, police work or piloting aircraft may factor into your insurance premium.
- Policy type: Term life insurance coverage ends after a specified term, often 10, 20 or 30 years. Whole life and universal insurance remain in force for as long as you pay your premiums. In general, term life insurance is less expensive than universal life and whole life coverage.
- Coverage amount: You'll generally pay more for more coverage. The average monthly premium for a 30-year-old man (shown in the table above) is $29.32 for $500,000 in coverage and $48.89 for $1 million, or roughly 67% more.
- Credit history: In some states, insurers may consider a credit-based insurance score in determining your insurance rate. A credit-based insurance score isn't the same as your consumer credit score, but it is partially based on information in your credit reports.
Learn more: How to Buy Life Insurance
How to Save on Life Insurance
You can save money on life insurance by following a few simple strategies. Though there are reasons to consider spending more on whole life insurance or higher coverage levels, you can get life insurance at an affordable price by sticking to basics such as:
- Buy insurance when you're young. Purchase insurance coverage while you're young enough to qualify for lower premiums. Your rates will remain constant through the life of your term.
- Choose term life insurance. Though there are pros and cons to whole life versus term life insurance, term life is decidedly cheaper. If a lower monthly premium is the priority, term life is the way to go.
- Don't buy more insurance than you need. Think through the amount of coverage you really need to provide for dependents, pay off debts and cover final expenses.
- Maintain your health (and safety). Life insurance premiums are typically higher for smokers or people who participate in risky activities (think skydiving).
- Compare rates from multiple companies. Contact multiple insurance companies or use an online marketplace so you can choose from a range of policies and rates. You may qualify for a bundling discount if you buy life insurance from your car or home insurer.
Tip: A renewable guarantee allows you to renew your term life insurance policy when your current policy ends so you have the option of being insured when you're older without paying higher whole life premiums now.
Frequently Asked Questions
The Bottom Line
Age has a direct effect on the cost of life insurance. And, though pricing can vary from one insurance company to the next, rates tend to rise as you get older. If you're considering life insurance, you may want to act sooner than later: Like everyone, you aren't getting any younger.
If you're trying to gauge your fitness for a low life insurance rate, you may want to review health markers like your weight, blood pressure, chronic illnesses and whether or not you smoke. You may also want to check your FICO® ScoreΘ and credit report from Experian, to preview some of the credit information life insurance companies may see when considering your application.
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About the author
Gayle Sato
Gayle Sato writes about financial services and personal financial wellness, with a special focus on how digital transformation is changing our relationship with money. As a business and health writer for more than two decades, she has covered the shift from traditional money management to a world of instant, invisible payments and on-the-fly mobile security apps.
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