Finding affordable life insurance coverage can seem daunting, but getting life insurance while you’re still relatively young and healthy is one of the best financial decisions you can make. The good news is that rates are very reasonable right now for Americans under age 85. Here’s an overview of today’s best life insurance rates and how to get low-cost coverage.
Life Insurance Rates By Age
Life insurance rates are based primarily on your age and health. The younger and healthier you are, the lower your premiums will be since the insurance company’s risk is lower. Here are typical monthly rates for $250,000 of coverage from a leading insurer*:
- Age 30: $16
- Age 40: $22
- Age 50: $39
- Age 60: $73
- Age 70: $148
- Age 80: $266
As you can see, rates start low when you’re young and increase rapidly as you age. Locking in coverage when you’re young can mean paying $20-30 per month instead of $200-300 later on.
What Affects Your Rate?
In addition to age, other factors impact your rate including:
- Gender – Rates are a bit lower for women than men on average.
- Health – Your medical history can result in higher rates if you have conditions like diabetes or heart disease.
- Lifestyle – Hazardous hobbies or occupations can increase your rate.
- Nicotine Use – Using tobacco products will substantially increase your premium.
The good news is most people in average health can qualify for standard rates on policies up to $500,000 or more from top insurers if they apply before age 70.
10-Year, 20-Year, And 30-Year Policy Terms
One way to save on life insurance is to choose a longer policy term. Here are sample monthly rates for a $500,000 policy from a leading insurer:
- 10-year term: $43 per month
- 20-year term: $54 per month
- 30-year term: $90 per month
The longer the term, the higher the rate since the policy will pay out if you pass away at any time during the term. But the monthly cost is much lower for a 10 or 20 year term compared to 30 years. Choose the shortest term that meets your needs.
How To Get The Best Rates
Here are some tips for getting the lowest rates on life insurance:
- Shop around – Get quotes from several highly-rated insurance companies. Rates can vary significantly.
- Consider group insurance – Check if you have access to group life insurance through your employer, which is often more affordable.
- Improve your health – Quit smoking, lower cholesterol, and reach a healthy weight to potentially qualify for better rates.
- Check rates annually – Rates can improve as you age, so check for better deals at renewal time.
- Extend your coverage – If a policy is expiring, you can often renew or convert it to permanent life insurance without a medical exam.
Comparing Life Insurance Companies
It’s important to buy from an established insurer with strong financial ratings. Here are four excellent options to consider:
- Banner Life: Offers very competitive term life rates and an easy online application process. They have strong financial ratings.
- Prudential: Known for its outstanding customer service and online tools to manage your policy. Has maintained strong ratings for over 140 years.
- State Farm: The leading insurer in America. Offers simple term and permanent life products. Excellent option if you already have policies with them.
- Pacific Life: Known for flexible products like universal life insurance with cash value growth. Has maintained strong financial ratings for 150+ years.
No matter which highly-rated insurer you choose, following the tips above can help you lock in the lowest rate possible for your situation. Getting life insurance in your 20s, 30s or 40s can mean paying $10-30 per month for quality coverage vs. waiting until rates are much higher.
Final Tips
The bottom line is that great life insurance rates are available right now if you’re under age 85 and in decent health. Taking advantage of low premiums when you’re young locks in financial security for your loved ones later on. Use an independent insurance agent or online comparison tool to shop multiple top-rated insurers at once and find the best fit for you.
