Understanding Average Life Insurance Rates

A young woman takes notes in her journal highlighting important information surrounding average life insurance rates

Many people assume that life insurance is crazy expensive, but the truth is, you can likely get substantial coverage at an affordable rate. The average cost of life insurance depends on a number of factors, including what type of policy you choose, how much coverage you sign up for, your health and age at the time of purchase, and more. This article will talk more about how life insurance rates are determined, the average costs and how we can help you find the right coverage for you.

How are life insurance rates determined?

How life insurance rates are determined can vary from carrier to carrier, but many follow a similar underwriting process. From your age to how much coverage you need to the type of policy you end up with, underwriting takes into consideration a number of factors when determining your life insurance rates, including: 

  • Age and health at the time of purchase: The younger you are, the more likely you’ll be able to find affordable life insurance, but your health will also be taken into consideration during the life insurance medical exam.
  • Length of policy and amount of benefit: The longer the term or higher the benefit, the more expensive your monthly premium is likely to be.
  • Type of policy: While term life insurance policies are typically more affordable, some find that permanent life insurance policies are the better fit for them.

Average Cost of Term Life Insurance

Term life insurance is arguably the most affordable life insurance option and the cost is determined by the various factors listed above. Many term policies also include “guaranteed level” premiums, which means you’ll pay the same premium for the entire length of your policy. With term life insurance, you get to choose the term length that is right for you and the length options typically are 10, 15, 20, 25 and 30 years. 

Average Life Insurance Rates Based On Age

Your age can have a significant impact on your life insurance rates, which is why you’re encouraged to purchase life insurance coverage as early as possible. When you’re younger and in better health, your life insurance rate is typically more favorable.

The older you get, the more risk you are to life insurance companies. Your health naturally declines and your potential of getting sick increases, meaning you’ll likely be paying more for coverage the older you get. We work with many of the nation’s most trusted insurance carriers to find you the best available rate, but the reality is, the longer you wait, the more your rates are likely to increase. If you’re able to secure coverage at a younger age, your premium will be locked in.

SelectQuote Can Determine Your Life Insurance Costs

If you’re not sure where to start when it comes to shopping for life insurance, check out our life insurance calculator. No matter your age or what type of life insurance policy you’re interested in, we can help you find the right coverage for you. In just minutes, we can compare coverage and rates from some of the most trusted life insurance companies in the nation.

We do the shopping. You do the saving.