- According to data from S&P Global, the average life insurance policy's premium is $44 per month.
- But, there are several factors that will influence the actual price you'll pay for life insurance, including your age, sex, and insurance type.
- See Business Insider's picks for the best life insurance companies »
Life insurance is surprisingly affordable. The average cost of life insurance is $44 per month, according to data from S&P Global.
Across all life insurance policies — including more expensive and guaranteed-to-pay-out whole life policies, in addition to cheaper, temporary term life policies — that breaks down to $538 in premiums per year, or about $44 per month.
In 2019, life insurance companies took in over $151 billion in premiums across over 280 million policies.
But, life insurance isn't one-size-fits-all. While an average amount can give you an idea of what you'll pay, there are many factors that go into life insurance. One of the biggest considerations is whether you want whole or term life coverage.
Average whole vs. term life insurance rates
There are two main types of life insurance: whole life insurance and term life insurance. They both pay out differently, and have very different costs associated with them.
According to Policygenius data, the average costs for a whole life policy is between five and nine times greater than a term life policy rate. These prices are based on a male in excellent health with a $250,000, 20-year term policy, and a $100,000 whole life policy.
| Age | Average term life insurance rate per month | Average whole life insurance rate per month | How much more expensive is whole life insurance? |
| 20s | $15.90 | $85.45 | 5.4 times more expensive |
| 30s | $16.14 | $122.20 | 7.6 times more expensive |
| 40s | $21.75 | $196.25 | 9.0 times more expensive |
| 50s | $47.86 | $233.94 | 4.9 times more expensive |
Term life insurance
Considered the cheaper and more practical option, this life insurance provides enough coverage for a certain number of years, generally between 10 and 30 years. These policies are meant to cover you for a certain period of time, such as when you have young children or debt like a mortgage to pay off. After the number of years are up, the policy expires.
Whole life insurance
Whole life insurance is a permanent policy that will remain in place and pay out when you die. This type of policy is much more expensive than a term life insurance policy, but is guaranteed to pay out eventually. It's typically used to leave inheritances, but it can be pricey.
Average life insurance cost by sex
Sex plays a big role in life insurance rate. For the same insurance policy, a female and male will pay different amounts for coverage each month.
Here's how this difference stacks up between two 35-year-old, nonsmoking people of different sexes for the same $250,000 term life policy for 30 years:
| Life insurance company | 35-year-old female quote | 35-year-old male quote |
| RiverSource | $22.31/month | $25.16/month |
| State Farm | $28.00/month | $30.02/month |
| Nationwide | $23.14/month | $26.26/month |
| Mutual of Omaha | $21.29/month | $24.51/month |
| Average cost | $23.68/month | $26.48/month |
On average, life insurance for the same policy from these quotes would cost $2.80 more per month for a man. Over the full 30-year term, this adds up to $1,008 more than a female's policy.
Average life insurance cost by age
Life insurance changes depending on your age. The price you'll pay each month for coverage increases with each passing year.
Business Insider obtained quotes from four large insurance companies for people seeking $250,000 worth of coverage for a 30-year term, both in excellent health. The average of these four quotes is listed below for each age range:
| Age | Average female quote | Average male quote |
| 25 | $20.10/month | $23.05/month |
| 30 | $21.86/month | $23.07/month |
| 35 | $24.19/month | $26.48/month |
| 40 | $34.77/month | $40.21/month |
| 45 | $48.52/month | $61.40/month |
| 50 | $60.31/month | $81.72/month |
The most noticeable difference is in the older ages of the sample premiums — after age 35, premiums go up significantly. The sooner you get your coverage, the less you could pay each month. Waiting for life insurance coverage won't make it any cheaper, as the data above shows.
Other factors that can influence life insurance rates
There's more than just age, sex, and type of insurance that can influence your rates. Your lifestyle and health history could also influence the price you pay. Here are a few things that could make your coverage more expensive than someone else your age.
Smoking history
Smoking can increase life insurance rates quite a bit. Insurance company Protective Life research shows that life insurance is 100 to 300 times more expensive for smokers. According its data, a 45-year old male smoker with a 20-year, $500,000 policy would pay $289 per month for coverage, while a nonsmoker would pay about $52.
A history of risky activities
Avid skydivers, scuba divers, or travelers could find that their insurance rates are higher than others. It's not uncommon for insurers to ask about your history with these activities, your travel history, and your future plans. A bad driving record could also add to the cost of life insurance.
Health history and medications
Life insurance companies can check your health history and medication history through two ways: a medical records database and your medical exam. Like health insurance, the rate you pay could be influenced by pre-existing conditions.
- Still shopping for life insurance? Get quotes from these Business Insider partners:
- Get quotes from Policygenius »
- Get quotes from Ladder »
- Get quotes from Fabric »
- Get quotes from Haven Life »
- Get quotes from Bestow »
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