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How much should I pay for term life insurance?


There are so many different term life insurance options to choose from that sometimes one of the best ways to understand what term life insurance policy is best for you is to understand how much you should be paying for term life insurance. While no two individuals are exactly the same, and there are a number of factors that affect your term life insurance rates, some broad averages can help clear this up.

Factors for the Cost of Term Life Insurance

There are a number of factors that go into the cost, and thus the average cost of term life insurance. These include your gender, lifestyle, age, and health.


Typically women live longer than men, and so they will pay less in insurance costs than men will because companies view them as lower risk.


Another important factor is your lifestyle. For example, a skydiving instructor will pay more for term life insurance than a writer will, because sky diving is more risky and thus constitutes a bigger risk to the insurance company.


Your age gives insurance companies a good indication of what kind of risk you are, and so can affect your rates. Younger individuals will pay less than older ones because they are more likely to live past the end of the insurance term and thus qualify for low cost term life insurance.


Your health is a large factor in determining “How much does term life insurance cost?” If you smoke, are overweight, or suffer from chronic health problems, the insurance company will see you as a bigger risk, and thus charge more.

The Averages

Taking these factors into account, a 20 year old male in good health who doesn’t smoke will, on average, pay around $32/month for a 20 year, $500,000 policy. A female in the same circumstances will pay around $26/month. However, these numbers can be affected by the listed factors. If the man in our example was a smoker, his average rate would climb to around $106/month.

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