Life insurance can safeguard your family’s quality of life if you pass away, so it’s wise to consider adding it to your financial portfolio. If you’re worried that you can’t afford it, first check out actual quotes.

A recent LIMRA study found that most people overestimate the cost of life insurance by 300%. Various rates are also available with more life insurance companies than ever before. Term life insurance is a particularly affordable life insurance option to consider when looking for a budget-friendly life insurance option.

Average Life Insurance Rates Takeaways

Life insurance is not one-size-fits-all. Rates vary based on a variety of factors, including the policy type, length, and death benefit you choose—plus your pertinent personal information. With term life insurance, your premium will stay the same every year during your term period, so you can count on it as a fixed item in your budget now and in the future. However, as you’ll see below, quotes will rise based on your age when you purchase a policy.

It’s wise to buy term life insurance when you’re younger before rates increase and your policy options decrease. With every year that passes, your life insurance quotes will go up, even if you’re in excellent health. By waiting to buy life insurance, you risk developing a health condition that will cause an even higher rate when you buy a policy.

Factors That Influence the Cost of a Policy

Some of the factors that can influence the cost of your policy are:

Policy type: This includes the term length and coverage amount. Typically, term life insurance is the most affordable type of coverage.

Gender: Women generally pay less for their policies than men.

Age: Life insurance rates only get higher as you get older, so it’s wise to lock in lower rates now.

Overall health: Providers look at your family and personal health history to determine policy costs.

Smoker status: Nicotine use can directly affect your rates. If you smoke cigarettes, cigars, or chew tobacco, now’s a good time to quit.

Hobbies: Life insurance companies will evaluate any high-risk hobbies and activities you enjoy, like skydiving, scuba diving, or flying a private plane.

Life Insurance Rates by Age

We analyzed average term life insurance rates based on age, term length, and payout amount. Of course, y our exact cost will depend on your health and age, among other things, but our overview of average life insurance rates will give you an idea of what you can expect to pay. In addition, Fidelity Life offers several flexible term life insurance products, many of which can be further customized with riders.

30 Years Old

On average, a person can expect to pay an annual rate of $300-400 for a 20-year term policy with a benefit amount of $500,000. This is based on numerous factors like gender, policy type, and overall health. The benefit of purchasing at 30 years old is primarily the ease of approval. The younger and healthier a person is, the more likely they are to be approved for a plan.

40 Years Old

On average, a person can expect to pay an annual rate of $480-560 for a 20-year term policy with a benefit amount of $500,000. Again, this is based on numerous factors like gender, policy type, and overall health. The age of 40 is when the savings begin to dwindle for life insurance seekers. As a person nears 50, they can expect prices to double, sometimes nearly tripling. Shoppers can still save by purchasing at age 40 rather than waiting.

60 Years Old

On average, a person can expect to pay an annual rate of $2,400-3,200 for a 20-year term policy with a benefit amount of $500,000. Because premiums are based on numerous factors like age, gender, policy type, and overall health, coverage options at 60 will be more expensive but not impossible to find.

70 Years Old

For a person who is 70 years old, the ability to acquire term life insurance still exists, but options are limited. Available coverage amounts are typically lower with higher premiums due to a higher risk of dying during the term period.

Why Term Life Insurance Rates Change with Age

The business of life insurance is a risk and reward model. If a company were to take on a number of high-risk clients, which in this case includes older or unhealthy individuals, the rate of death may be higher and sooner, resulting in little profit.

In other words, the increased risk in representing someone who is older is reflected in their premium rate. A younger, healthier individual with little risk can expect to pay significantly less than someone who is purchasing insurance in their 60s.

Other factors that impact life insurance costs? Unfortunately, things that can and cannot be changed. Life insurance companies offer quotes based on age, gender, smoking or non-smoking, health, medical history and family health history, and hobbies.

Term Life Insurance Quotes by Age

Fidelity Life offers term life insurance policies and makes it easier for people to get them. First, an applicant provides information to help match them with a life insurance policy that meets their needs. Next, the applicant can select the policy and get a quote online or with the help of a licensed agent. Fidelity Life will then guide the applicant through the application and purchasing process.