fbpx

Life Insurance Costs and Payouts at Different Ages

Benzinga Money is a reader-supported publication. We may earn a commission when you click on links in this article. Learn more.

Out of all the different types of insurance we can invest in, life insurance seems to be the least important for many people. However, life insurance could be one of the most important policies that we take out. It not only ensures that all our final expenses are paid, such as burial and funeral services, and that insurance beneficiaries are taken care of, but it can also provide many other benefits while we are living.

There are several benefits to owning a life insurance policy, and one of the most important is that you know your family is taken care of when the inevitable happens.

The Best Life Insurance Companies:

What is Life Insurance?

A life insurance policy is a contract that you have with an insurance provider. In exchange for your payments, the insurance company will provide a lump-sum payment to your beneficiaries upon your death. Life insurance is available in various amounts based on your needs.

Basically, there are two types of life insurance: term life and whole life. Term life insurance provides you with coverage for a set period. Whole life or permanent life insurance provides lifetime coverage that never expires. There are also universal life insurance plans that differ from the two.

Term Life Insurance

Term life insurance helps provide financial protection over a duration of time such as 10, 15 or 20 years. When you have a traditional term life insurance plan, your monthly premium amount will stay the same throughout your term.

Once the term is up, the policy may offer you continued coverage, which usually has a higher monthly premium. The main benefit of term life insurance plans is that they are usually more affordable than whole or universal life policies.

How Does it Help?

Term life insurance may be used to replace your lost income during your employment years. It can offer a safety net to your beneficiaries and help ensure that your family’s financial goals will stay intact. These goals can include paying off a mortgage, paying for college tuition, or the upkeep of a family business.

Although term life insurance can be used to replace potential income, life insurance benefits are always paid in a lump sum, so your beneficiaries will not receive ongoing payments.  

Compare Term Life Insurance Quotes

Whole Life Insurance

Whole life insurance is a form of permanent life insurance that is designed to provide the owner with lifetime coverage. Since the coverage lasts an entire lifetime and never expires, the premiums are much higher than term life insurance. The payments are usually fixed, and unlike term insurance, whole life has a cash value that the owner can borrow against. The cash value works similarly to a savings account and accumulates cash over time.

Whole life insurance policies can be used as part of an estate planning strategy and help preserve the money to be transferred to your beneficiaries in the event of your death.

Compare Whole Life Insurance Quotes

Universal Life Insurance

Universal life insurance is a type of permanent insurance plan that can provide coverage throughout your life. Unlike whole life insurance policies, a universal life policy is flexible and allows you to either raise or lower your monthly payments or your coverage amount while the plan is in effect. However, these benefits come at a price which makes universal life insurance plans more expensive than whole or term life insurance.

Universal life insurance policies are often used to help with estate planning and preserve the wealth that is to be transferred to beneficiaries. Another use for this type of coverage is long-term income replacement, which will last longer than your employment years. There are some universal life insurance plans that are designed to focus on providing both death benefits and building up cash value over time that the owner of the policy may borrow against while they are living.

Compare Universal Life Insurance Quotes

How Rates Differ for Men and Women

Life insurance companies base their rates for men and women on the national life expectancy statistics and averages. Studies over time have shown that women tend to live longer than men. Men also have a higher risk of mortality due to their high risk of developing life-threatening diseases such as heart disease, diabetes, cancer, strokes, pulmonary disease, and infections.

Since statistics show that women live longer than men, insurance companies will often charge men a higher premium to help ensure that the company receives enough payments to cover their costs. However, there are several other factors that insurance companies consider when it comes to determining your rate. Factors such as your lifestyle, health history and profession are taken into consideration and help to determine your premium costs.

Average Life Insurance Rates by Age and Gender

The amount you pay each year for your term or whole life insurance depends on several factors. This can include health, lifestyle, and age. Your age when you apply for term or whole life insurance helps determine how much your premium is. Here are a few examples for annual premiums for various age groups.

Age 20

Men

Male Age 20 – 29
Plan Term Average Premium Per Year
100,000 Term-life 20-year plan $111 per year
100,000 Term- life 30-year plan $147 per year
Whole life plan Whole life $724 per year

Compare Life Insurance Quotes

Women 

Female Age 20 – 29
Plan Term Average Premium Per Year
100,000 Term-life 20-year plan $264 per year
100,000 Term- life 30-year plan $337 per year
Whole life plan Whole life $622 per year

Compare Life Insurance Quotes

Age 30

Men

Male Age 30 – 39
Plan Term Average Premium Per Year
500,000 Term-life 20-year plan $156 per year
500,000 Term- life 30-year plan $240 per year
Whole life plan Whole life $2,385 per year

Compare Life Insurance Quotes

Women

Female Age 30 – 39
Plan Term Average Premium Per Year
500,000 Term-life 20-year plan $208 per year
500,000 Term- life 30-year plan $335 per year
Whole life plan Whole life $4,142 per year

Compare Life Insurance Quotes

Age 40

Men 

Male Age 40 – 49
Plan Term Average Premium Per Year
250,000 Term-life 20-year plan $210 per year
250,000 Term- life 30-year plan $384 per year
Whole life plan Whole life $3,508 per year

Compare Life Insurance Quotes

Female Age 40 – 49
Plan Term Average Premium Per Year
250,000 Term-life 20-year plan $185 per year
500,000 Term- life 30-year plan $314 per year
Whole life plan Whole life $3,008 per year

Women

Compare Life Insurance Quotes

Age 50

Men 

Male Age 50 – 59
Plan Term Average Premium Per Year
1,000,000 Term-life 20-year plan $1,692 per year
1,000,000 Term- life 30-year plan $3,301 per year
Whole life plan Whole life $21,480 per year

Compare Life Insurance Quotes

Women 

Female Age 50 – 59
Plan Term Average Premium Per Year
1,000,000 Term-life 20-year plan $1,233 per year
1,000,000 Term- life 30-year plan $2,349 per year
Whole life plan Whole life $17,760 per year

Compare Life Insurance Quotes

Age 60

Men 

Male Age 60 – 69
Plan Term Average Premium Per Year
250,000 Term-life 20-year plan $1,477 per year
500,000 Term- life 20-year plan $2,793 per year
1,000,000 Term-life 20-year plan $5,393 per year
250,000 Whole life plan Whole life $8,783 per year

Compare Life Insurance Quotes

Women 

Female Age 60 – 69
Plan Term Average Premium Per Year
250,000 Term-life 20-year plan $1,033 per year
500,000 Term- life 20-year plan $1,911 per year
1,000,000 Term-life 20-year plan $3,637 per year
250,000 Whole life plan Whole life $7,293 per year

Compare Life Insurance Quotes

Top Picks for Life Insurance

The top companies that sell the most life insurance, whether it is term or whole life, are some of the most popular insurance providers in the nation.

1. Life Insurance by Bestow

With plans starting at just $3 a month Bestow is perfect for anyone on a budget. This affordable term life insurance allows you to skip the doctor appointment and say “no thanks” to the stacks of paperwork. You can get a quote quickly and when it’s convenient for you because everything is 100% online. Answer a few simple questions and get a decision instantly.

There is no need to enter your name, email or phone number to get a quote. Bestow relies on data rather than feedback from a medical exam. Take life into your own hands by applying with Bestow, the ideal combination of age-old quality fused with modern technology to deliver one of the best companies on the market.

2, 10, and 20-year policies are available, just another reason why this customizable life insurance makes our top list.

2. Haven Life Insurance Agency

Haven Life is an innovative life insurance agency that offers a simple way to obtain term life insurance for those between the ages of 18 and 64. You can choose a term length of 10, 15, 20 or 30-years. What’s unique about this term life insurance is the way you can complete an application online and, if approved, digitally purchase coverage.

Haven Life is backed and wholly owned by MassMutual, a nearly 170-year-old life insurance company with a long history of claims-paying ability. Also available is Haven Life Plus, a no-cost rider to the Haven Term policy for customers in eligible states. Some of the great services included with Haven Life Plus are:

  • A world-class fitness app with thousands of workouts and (most importantly) great music
  • An app that combines the latest sleep and neuroscience research to help prevent jet lag
  • A customized, state-specific, legally valid online will

Affordable and dependable, Haven Life offers protection for your family in the event of an unfortunate loss. A 20-year, $500,000 Haven Term policy, issued by MassMutual, for a healthy 35-year-old woman, is $23.34 per month. For perspective, the average American adult spends around $50 every month on subscription services. Apply for Haven Life to help financially protect your loved ones. 

3. Best for People with Children: Fabric

Fabric offers term life insurance for individuals between the ages of 25 and 50. They believe that life insurance isn’t for you, it’s for your family. You can apply in as quick as 10 minutes and could be offered coverage on the spot. Their policies are issued by Vantis Life, a Penn Mutual Company, so your policy is backed by a highly-rated, financially stable provider.

Apply online or in Fabric’s mobile app. They offer a range of term lengths and coverage amounts to help you find a policy that works for you. Choose from 10, 15 or 20-year terms and coverage amounts from $100,000 up to $5,000,000. 

To get an idea of how much you might spend on term life insurance with a Fabric policy, we gathered a real quote. A 20-year term life insurance policy for a 29-year-old female in excellent condition with a coverage amount of $250,000 would pay around $14.61 per month. That’s less than a burger combo at Shake Shack! Apply now and see what this affordable term life insurance will cost you. 

Final Thoughts

Owning a life insurance policy is a guarantee that your family will be taken care of when you pass away. The money that they receive can be used to help pay for your funeral and burial costs, any bills that you have left unpaid, the mortgage on your home, medical bills, and other debts that you would have paid for if you had remained alive.

Having a good insurance policy is an important step for adults. It doesn’t matter what type of insurance plan you choose to take out. Whether it is a term, universal, or whole life insurance plan, your policy will ensure financial stability for your loved ones and provide you with peace of mind.

Frequently Asked Questions

1) Q: What are the advantages of term life insurance?

1
1) Q: What are the advantages of term life insurance?
asked
1

A term life policy allows you to purchase coverage at a guaranteed premium for a limited amount of time. This structure makes term life an affordable choice to protect your family if you have a financial commitment that won’t last forever, like a mortgage or the cost of raising kids. A 20-year term life insurance policy is the most popular life insurance policy purchased to protect loved ones if the unexpected happens. Get a quote here from top providers.

answered

2) Q: What are the advantages of whole life insurance?

1
2) Q: What are the advantages of whole life insurance?
asked
1

Whole life insurance, along with universal life insurance and some other variants, is designed to provide coverage for your entire life. This differs from a term policy that offers guaranteed premiums for a limited time. Permanent life insurance has a savings or investment element that helps the policy to build cash value, making it an asset that can be borrowed against or even sold if you no longer need the policy.

answered

3) Q: How much life insurance do I need?

1
3) Q: How much life insurance do I need?
asked
1

Many in the industry recommend that you carry 8-12 times your annual income in life insurance coverage. A more granular approach can be beneficial, however, and accounting for debt and ongoing financial commitments in more detail when choosing a coverage amount can better provide for your family than an arbitrary multiple of earnings. Get a customized quote for the best policy.

answered

Call Now & Save On Life Insurance

Talk to an insurance saving expert, and lock in the best rate.
(888) 858-4265