Since 1994
By the Termco teamLicensed life insurance agents since 1994Updated
The basics
Insurers use mortality tables, statistics on how many people of a given age, sex and health die each year, and adjust them with their own experience. Your premium covers the expected cost of claims over the term, plus the insurer's expenses and profit, spread evenly so your price stays level. That's why a 20-year policy costs more per month than the first year of coverage alone would: you're prepaying for the later, riskier years.
The factors, roughly in order of impact
1. Age
The biggest factor. Risk rises every year, and faster as you get older.
Example estimates from Termco's own pricing model (the same one behind our quote tool) for $500,000 over 20 years, non-smoker, excellent health. They are not quotes from any insurer. Actual rates are set by the insurer after underwriting.
| Age | Man | Woman |
|---|---|---|
| 30 | $21.52–$27.49/mo | $18.46–$23.35/mo |
| 40 | $32.51–$42.33/mo | $27.47–$35.52/mo |
| 50 | $70.87–$94.14/mo | $58.93–$78.00/mo |
| 60 | $204.77–$274.96/mo | $168.72–$226.28/mo |
2. Tobacco and nicotine
Nicotine users typically pay multiples of non-user rates. See term life for smokers.
3. Health class
After reviewing your application, records and any exam, the insurer assigns a class. Names vary, but a common ladder is Preferred Plus, Preferred, Standard Plus and Standard, followed by "table ratings" that add a percentage for higher risks. The class reflects your medical history, current conditions and how well they're controlled, build, blood pressure and cholesterol, family history, driving record and sometimes hobbies or travel.
4. Sex
Women live longer on average, so they typically pay less for the same coverage.
5. Term length
Longer terms cover older, higher-risk years, so they cost more each month. See choosing a term length.
6. Coverage amount
More coverage costs more, but not proportionally. Insurers price in bands, and the cost per $1,000 usually drops at higher amounts, so $1,000,000 often costs well under twice what $500,000 does. Most policies also carry a small flat policy fee.
7. The insurer
Insurers price the same person differently, because they use different mortality experience, underwriting guidelines and business targets. One may be the cheapest for a healthy 35-year-old and expensive for a 55-year-old with treated blood pressure. This is the factor comparison shopping addresses.
What doesn't usually matter much
Where you live has a smaller effect than people expect, though product availability and some policy features vary by state (see term life insurance by state). Your income doesn't change the price per dollar of coverage, but it does limit how much coverage an insurer will approve.
About the estimates on this site
Termco's quote tool and the examples on this page use our own pricing model. It's calibrated to typical published term rates from insurers rated A- or better, and it adjusts for age, sex, nicotine, health and build, amount and term. It's designed to give you a realistic ballpark. It isn't any insurer's price, and your actual rate is set by the insurer after underwriting. Try it with your details.
About the prices on this page. Every price shown is an example estimate from Termco's own pricing model, the same one behind our quote tool. It's calibrated to typical published term rates from insurers rated A- or better, but it is not a quote from any insurer, not an offer of insurance, and not a guarantee. Your actual rate depends on the insurer and its underwriting of your full application.
See estimates for your age and health
Eight quick questions, no account needed. A licensed Termco agent confirms your exact rate before you apply.
Frequently asked questions
What factors affect term life insurance rates?
Mainly your age, tobacco or nicotine use, health class (medical history, build, blood pressure, cholesterol, family history, driving record), sex, the term length, the coverage amount and the insurer you choose.
Why do term life prices differ between insurers?
Each insurer uses its own mortality experience, underwriting guidelines and business goals, so the same applicant can be priced quite differently. Comparing insurers is the most reliable way to save.
Does term life insurance get more expensive every year?
Not with level term. The premium is fixed for the whole term. It's the price of buying a new policy that rises with your age.
How can I lower my term life insurance rate?
Apply while you're younger, stop using nicotine, get conditions like blood pressure under control before applying, choose the right term and amount, and compare insurers.
Related guides
- How Much Is $500K Term Life Insurance for a 40-Year-Old?
- Term vs. Whole Life Insurance: Which Do You Need?
- How Much Life Insurance Do I Need? A Simple Way to Figure It Out
- Can You Get Term Life Insurance Without a Medical Exam?
- Term life insurance by state
This page is general information, not medical, legal, tax or underwriting advice. Underwriting decisions are made by each insurer and vary by insurer and individual.