When shopping for term life insurance, it's helpful to have an idea of how much you can expect to pay for coverage. The cost of your specific policy can vary considerably depending on several factors, including your age and current health status. However, comparing the average cost of term life insurance can help you better prepare your finances before shopping for a policy.
An independent insurance agent can also help you find affordable term life insurance near you. They'll help you get set up with the right type of policy that makes the most sense for you and your family. But first, here's a guide to the average cost of term life insurance in 2026.
Key Takeaways - How Much Does Term Life Insurance Cost?
- The cost of term life insurance is determined by several factors, including your age, policy term, health status, and more.
- The average cost of a 20-year term life insurance policy with $500,000 in coverage is $23 per month for women and $28 per month for men.
- Buying term life insurance while you're younger and healthier can help you lock in lower premium rates.
- You can save money on term life insurance by maintaining a healthy lifestyle.
- Working with an independent insurance agent is strongly recommended, as they can compare policies and rates from multiple insurers for you and tailor coverage to meet your unique needs.
What Is Term Life Insurance and How Does It Work?
Term life insurance is a type of life insurance policy that provides a death benefit to the policyholder’s beneficiaries if that person dies within the specified “term” of the policy. Terms are typically set for 10, 20, or 30 years, but you can buy term life insurance with a term ranging from one to 40 years. This coverage differs from permanent or whole life insurance policies, which are designed to cover the policyholder for their entire life.
Once you choose your policy, you pay a premium to the life insurance company to keep the policy in force until the end of the defined term, or the end of your life, whichever comes first. You may have the option of paying the premium annually, monthly, or as a lump-sum payment up front. If you pass away during the specified term of the policy, your designated beneficiary will receive the death benefits from your policy, which may be in one lump sum payment or a yearly payout if your policy includes an annuity option.
Term life insurance is often chosen by people who want to set aside funds for dependents and spouses. For example, people with young children often select term life insurance. In other cases, people with significant debt choose term life insurance to reduce the financial burden on surviving loved ones if they pass away. Couples and business partners are also common candidates for term life insurance policies.
The Average Cost of Term Life Insurance in 2026
A 20-year term life insurance policy with $500,000 in coverage costs an average of $23 per month for women and $28 per month for men. The table below shows the average cost of term life insurance by age and gender for the sample 20-year term policy with $500,000 in coverage. The sample policy's applicant is a healthy individual who is a nonsmoker.
Average cost of 20-year term life insurance by age and gender
| Age | Average Annual Premium (Women) | Average Annual Premium (Men) |
|---|---|---|
| 20 | $176 | $213 |
| 30 | $185 | $215 |
| 40 | $280 | $331 |
| 50 | $640 | $815 |
| 60 | $1,650 | $2,351 |
| 70 | $7,994 | $9,702 |
Factors That Can Affect Term Life Insurance Costs
Multiple factors can influence the cost of term life insurance, including the following:
- Location
- Age and gender
- Health status (e.g., smoking, medical history, BMI)
- Occupation and lifestyle
- Policy term length and coverage amount
An independent insurance agent can help you find affordable term life insurance near you. They're familiar with term life insurance quote factors and can help you find cheap term life coverage that doesn't sacrifice quality.
How to Calculate Your Term Life Insurance Cost
You can estimate your term life insurance rates by obtaining coverage quotes online. Different insurance companies will have different rates for coverage, even with the exact policy term and applicant factors, because all insurers assess risk in their own way and set rates accordingly. You can also find online calculators to estimate your policy's costs, such as our life insurance calculator. An independent insurance agent can also help you estimate your term life insurance cost by gathering quotes from several carriers.
Ways to Get Cheaper Term Life Insurance Rates
You can lower the cost of your term life insurance by maintaining a healthy lifestyle and eliminating risky behaviors, such as dangerous hobbies or smoking and drinking. It always helps to improve your health and lifestyle before applying for coverage. It's also helpful to compare quotes from multiple carriers online or with the help of an independent insurance agent. Of course, buying term life insurance as early as possible, at your youngest and healthiest, is the best way to ensure your lowest premium rate.
Average Monthly Cost of Term Life Insurance by Age and Gender
The table below shows the average cost of term life insurance by age and gender for a policy with $250,000 in coverage. The sample rates are for nonsmokers.
| Age | Avg Monthly Premium (Women) | Avg Monthly Premium (Men) |
|---|---|---|
| 20 | $14.79 | $16.10 |
| 30 | $15.01 | $16.10 |
| 40 | $17.84 | $18.92 |
| 50 | $31.97 | $35.45 |
| 60 | $59.60 | $77.43 |
How Can an Independent Insurance Agent Help?
Independent insurance agents have access to multiple term life insurance companies, so they're free to shop and compare policy options and quotes for you to find the best coverage. They'll walk you through your options and make sure you understand exactly what you're getting. And down the road, your agent can help your beneficiary file term life insurance claims or update your coverage when necessary.
Sources
https://www.nerdwallet.com/article/insurance/what-is-term-life-insurance
https://www.progressive.com/answers/how-much-is-life-insurance/
