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Average life insurance rates in USA for 2020

If you are looking for life insurance, you have dozens of companies, life spans, and coverage amounts to choose from.

Of course, the price will influence your decision and can determine the type of policy you choose. To give you a sneak peek at these rates, NerdWallet compared average life insurance rates for men and women of different ages and health levels, across multiple coverage options.

How much does life insurance cost?

The average cost of life insurance is $ 26 per month. This is based on the data provided by Quotacy for your 20-year life policy, the most common sales term. But life insurance rates can vary widely between applicants, insurance companies, and policy types.

How are life insurance rates determined?

Life insurance premiums are based primarily on life expectancy, so many factors help determine rates, including gender, age, health, and whether you are a smoker.

Generally speaking, the healthier you are, the cheaper your premiums will be. Insurance companies generally rate applicants using terms such as highly preferred, preferred, and standard, with an ultra preference being the healthiest category. Insurance companies then calculate premiums based on your risk category.

What does the medical condition mean for your life insurance rates?

Here's what a 20-year policy of $ 500,000 a year could cost you, and how it compares to what a healthy person would pay.

Your age can also drastically affect your premium costs. That is why it is advisable to purchase life insurance as soon as possible; The longer you wait, the higher your rates based solely on age will be. According to the Centers for Disease Control and Prevention, the average life expectancy in the United States is 81.2 years for women and 76.2 years for men. Therefore, a woman will always pay less for life insurance than a man of the same age and health with similar risk factors.

Waiting to purchase an insurance policy will always be more expensive. For example, consider a 30-year-old who waits 10 years to buy a policy at 40:

  • A 20-year life insurance policy of $ 500,000 will cost an additional $ 100 per year.
  • By waiting 20 years to age 50, your 20-year, $ 500,000 life insurance policy rates will more than triple.