What life insurance really costs

Last updated: July 16, 2026 · 5-minute read

Sample monthly rates: 20-year term

These are illustrative ranges for a 20-year level term policy for a healthy non-smoker qualifying at a Preferred underwriting class, based on published industry averages:

Illustrative monthly ranges for a 20-year level term policy, healthy non-smoker at a Preferred underwriting class, based on published industry averages. Your actual rate depends on the carrier, your health, and your state — the only way to know it is a real quote.

Three things worth noticing:

• Doubling coverage doesn't double the price. At 30, going from $250K to $1M costs roughly 2.5× more — not 4×. Underpricing your family to save a few dollars is usually a bad trade.
• Age is the biggest lever you control. The same $500K policy costs roughly three times more started at 50 than at 30. Rates are locked at the age you apply — waiting is the expensive choice.
• Women pay less — statistically longer life expectancy means lower rates at every age.

The seven factors that set your rate

• Age — premiums rise 4–9% per year of age on average, faster after 50.
• Health — blood pressure, cholesterol, BMI, and medical history place you into an underwriting class; the spread between the best and average classes can be 30–50%.
• Tobacco & nicotine — smoker rates commonly run 2–3× higher. Many carriers re-rate you as a non-smoker after 12+ months quit.
• Coverage amount — more benefit costs more, but at a declining rate per dollar.
• Term length — a 30-year lock costs more per month than a 20-year lock at the same age.
• Policy type — permanent coverage (whole life, universal, IUL) runs roughly 5–15× the price of term for the same death benefit, because part of the premium builds lifelong cash value. See term vs. permanent.
• The carrier — this is the quiet one. Each insurer prices its own niches: some are lenient on blood pressure, others on family history or build. The same person can be quoted 40% apart by two A-rated companies — which is exactly why an independent agency that shops 30+ carriers earns its keep.

What about final expense policies?

Final expense (simplified-issue whole life for ages 50–85) is priced per $1,000 of a smaller benefit — typically $5,000–$50,000. A 65-year-old non-smoker might pay roughly $40–90/month for $15,000 of coverage. No medical exam, just health questions.

The honest bottom line

Tables tell you the neighborhood; only underwriting tells you the address. A real quote is free, takes minutes, and doesn't commit you to anything — and it's the only number that matters.