Whole Life Insurance Rates By Age With Charts
We often get the question How much does whole life insurance cost, so we put together the following whole life insurance rates by age charts below.
We have whole life insurance charts that give examples of whole life insurance quotes by age below. But these charts only tell half the story. The true cost of whole life insurance is determined by several factors, which we elaborate on below.
Colonial Penns Life Insurance Rates Are Not Cheap
Colonial Penns rates are not nearly as cheap as their ads lead you to think.
You can get a lower price for a whole life insurance policy from almost any other company in the life insurance industry.
This includes every life insurance company GetSure represents .
For example, in the tables below, youll find comparisons of whole life insurance rates from the 15 carriers we represent to those from Colonial Penn Life Insurance Company for the demographic Colonial Penn serves .
The punch line is: Colonial Penn Life Insurance Company profits from customers who do not comparison shop
- The result? Our lowest rate beats Globe Life, Colonial Penn, and AARP 96% of the time *
* Based on website quote requests to 9/30/22.
Can Life Insurance Be Affordable On A Tight Budget
It certainly can. The misconception about the price of life insurance is the main reason many people opt out. Consumers think life insurance costs nearly three times the actual price, according to a report by the nonprofit Life Happens. Premiums depend on many factors, including your age and health, so it’s advised to look into life insurance now rather than waiting until youre older.
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Should I Get Whole Life Insurance Or Term Life Insurance
Besides the policy types we listed above, when comparing different life insurance options, shoppers are typically presented with two main choices: term life insurance versus whole life insurance.
Term life insuranceoffers protection for a set number of years , usually in 10 or 20-year chunks or up to a certain age such as up to age 65. You pay a level premium over that term, and should something happen to you during that time, your beneficiaries or estate receive the benefit amount you agreed to with your insurer.
We mention term life insurance, as it is generally the right type of financial protection product for those with temporary needs, such as mortgages, car loans, child-raising, and other adult obligations. Because of its temporary nature its almost as if you are leasing life insurance it is much less expensive than whole life insurance, which has a guaranteed payout when the policy is in force. You can the average cost of term life insurance here.
With that said, there are cases where you may want whole life insurance and its elevated costs are not a deterrent. They include:
Covering funeral costs and other small debts
In the same spirit, this sum can be used to take care of any debts that may be transferred to your family or consignees when you pass.
Tax-efficient estate transfers
How To Buy Whole Life Insurance
Buying whole life insurance is similar to buying other types of life insurance.
First, youll fill out an application and have a phone call with an agent.
Then, in most cases, youll take a medical exam. This is similar to an annual physical.
After that, the insurance company will review your application and offer you your final rate, which can take four to six weeks.
Once you sign your policy paperwork and pay your first premium, youre covered.
Working with an independent broker that works with multiple companies can help you find the best insurance product for you. At Policygenius, our experts are licensed in 50 states and can provide you with unbiased advice on where to start.
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Whole Life Policy Features
State Farm Whole Life insurance policies offer level premiums and life insurance protection for as long as you live, provided that premiums are paid as required to keep the policy in force.
Policies can be paid with a single premium, premiums payable to 100, or premiums payable up to a limited number of years.
While policy loans do accrue interest daily, any outstanding policy loans and interest will reduce the death benefit and cash value.
While not guaranteed, policy may earndividends2 that can be paid in cash, used to reduce policy premium, accumulate as interest, or pay for additional insurance.
Universal Or Whole Life Insurance Rates By Age
*The universal life insurance or whole life insurance rates by age chart represents the average cost of whole life insurance for males age 70 80, with guaranteed coverage lasting until age 100.
Look at the rates for a 70-year-old male compared to life insurance for a 75-year-old.
Wow, in just five years, the prices have really started to escalate!
These rates are still way less expensive than many popular companies selling whole life insurance to older people on TV.
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Average Life Insurance Rates For December 2022
Many or all of the products featured here are from our partners who compensate us. This may influence which products we write about and where and how the product appears on a page. However, this does not influence our evaluations. Our opinions are our own. Here is a list ofour partnersandhere’s how we make money.
If youre looking for life insurance, there are dozens of companies, term lengths and coverage amounts to choose from.
Price will no doubt factor into your decision and may even determine what type of policy you choose. For a snapshot of those prices, NerdWallet compared average life insurance rates for men and women at different ages and health tiers, across multiple coverage options.
Why you can trust NerdWallet: Our writers and editors follow strict editorial guidelines to ensure the content on our site is accurate and fair, so you can make financial decisions with confidence and choose the products that work best for you. Here is a list of our partners and heres how we make money.
» MORE: Cheap life insurance companies
Are Life Insurance Premiums Tax
It is not uncommon to question whether life insurance premiums are tax-deductible. While premiums are typically not tax-deductible, there are a handful of life insurance tax benefits worth exploring.8 For example, if the policy is planned out correctly, most death benefits are paid to the beneficiary without being taxed.9 Tax-deferred cash value growth in our whole life insurance plans is also a major perk.
Choosing the right beneficiary or naming the beneficiary as a trust may also yield certain tax advantages. For instance, naming your beneficiary as an irrevocable life insurance trust can allow you to distribute your death benefit to multiple people and can keep the cash value from being lumped into your estate value, which has a greater chance of being taxed.10
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Policy Length: Average Life Insurance Cost Per Month
Term life insurance policies are typically available for a 10-, 20- or 30-year period. The shorter the policy length, the more affordable the life insurance.
When you renew at the end of your term, the cost of your annual premiums may increase.Ã
Sometimes life insurance premiums stay the same for your entire term . Sometimes they may go up in increments, such as every year for a one-year renewable policy or five years for a five-year renewable policy.
The following chart shows how policy length can affect the monthly cost of life insurance.Ã
Factors That Dont Impact Your Life Insurance Rates
Although there are many factors that contribute to your life insurance premium, there are also some criteria that dont impact costs.
- Location: Unlike with auto or property insurance, your location will not affect the cost of your life insurance. You will need to provide your address on the life insurance application, but it has no impact on the cost.
- While auto and home insurance rates often factor in your credit tier , your life insurance policy does not.
Life insurance companies care most about factors that impact your life expectancy, such as your current health and family medical history, which could contribute to health issues in the future. If an insurance company believes you have an increased risk of passing away prematurely, youll see a higher rate that reflects that risk.
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Universal Life Insurance Vs Whole Life
Frankly, universal life insurance is complicated. Even veteran life insurance agents have difficulty understanding these products.
Its a type of permanent life insurance because it can last forever.
Universal life policies are essentially a hybrid between term and whole life.
They build cash value just like whole life.
The rate of cash value growth in a UL plan heavily influences how long it will last. Just like whole life, you can withdraw it any time you please.
However, if you withdraw the cash, theres a good chance your policy will collapse later in life, leaving you with no coverage.
Some universal life policies offer payment flexibility where you can adjust how much you pay. Also, some can be used to augment your retirement.
There are a few different types of universal life, such as:
- Guaranteed universal life
- Indexed universal life
Each type has its pros and cons.
For example, guaranteed universal life guarantees that the policy cannot prematurely expire or increase in cost. However, you cannot adjust your payments the way you can with a flexible premium UL policy.
The main difference between whole and universal life is the guarantees.
Whole life has iron-clad guarantees that your premium, death benefit, and policy will never change .
Universal life does not come with these guarantees.
A UL plan will always cost about 15-30% less than whole life.
But is a moderately lower rate worth the potential that the policy ends later in life?
What Is The Average Cost Of Whole Life Insurance Per Month
Quote costs vary widely depending on the coverage amount and applicant’s age, medical status, and other terms and factors. A recent survey found that a 20-year-old female could pay about $55/month for $100,000 of whole life coverage. Insurers could quote a 50-year-old male for almost four times that cost about $217/month.
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How A Whole Life Insurance Policy With Cash Value Works
A whole life insurance policy is one that offers a lifetime of coverage, in exchange for a set premium. This coverage stays the same and at the same price, even as the policyholder ages, moves or develops certain medical or health conditions. No matter when the individual die, their loved ones are guaranteed a payout, as long as the policy is in good standing.
In addition to the death benefit, whole life insurance coverage includes a cash value benefit. This benefit adds a savings account component to the policy, allowing you to build up a cash reserve that you can borrow against, withdraw from or even use to pay future premiums.
So, how does this work?
Each month, as the agreed premium is paid, the insurance carrier puts a portion of that payment toward the actual cost of insuring you. The other portion is put into a savings account of sorts, where it builds the policys cash value. Over time, as the cost of insuring you increases , a smaller and smaller portion of the premium goes into the cash value account.
A whole life policys cash value benefit will continue to grow over time, thanks to dividends and/or interest growth . Any cash value growth may be subject to income taxes if and when its withdrawn, but will grow tax-deferred in the meantime.
Is Life Insurance Worth It?
Is Life Insurance Worth It?
Learn how life insurance works, how much it costs and whether you should get it.
Whole Life Insurance Cash Value
There are a handful of whole life insurance tax benefits that make this path appealing. Part of your premiums go into an account that accumulates over time, tax-freeotherwise known as the cash value. One of the main tax advantages of a whole life insurance plan is that your cash value can grow at a faster pace since there aren’t any fees being taken out.
You are also able to tap into these savings in an emergency through a loan or partial withdrawal. This can be especially helpful if you withdraw any funds post-retirement because youll likely be in a lower tax bracket by then.
This type of plan is popular for those who want to maximize the cash value for loved ones. The beneficiary shouldnt have to pay any income taxes on the death benefit. We recommend you speak with a tax professional to see how you can lower your tax liability, regardless of the plan you choose.
Peace of mind doesn’t have to break the bank
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- You can choose a specific term length.
- Premiums are typically lower, allowing you to save you money upfront.
- If you outlive your term, you will not receive the death benefit.
- You may be able to avoid high fees if you plan your term length wisely.
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The Life Insurance Cost Factors You Can’t Control
Two of the biggest influences on life insurance rates are also the ones you can’t control: age and sex. Generally, younger people pay less than older people because they’re less likely to have health problems. And the cost of life insurance tends to be more for males because they have shorter lifespans and are more likely to have dangerous jobs or lifestyles, making them riskier to insure overall.
Term life insurance rates by age and sex
The life insurance rates by age chart below provides examples of the average term life insurance costs for males and females, 20 to 60 years old, quoting a 10-year term policy through eFinancial. As you can see, the average life insurance cost per month is generally higher for men than women. Plus, the average rates for 20- and 30-year-olds are nearly the same, while those for 40-year-olds skew higher as a result of increasing risk.
|Coverage amount: $250,000Male: $74.82Female: $56.98|
Quoted life insurance rates are based on Fidelity Life Association’s best-published monthly premium rates for 10-year RAPIDecision Life policies for a face amount of $250,000 as of May 22, 2020. RAPIDecision Life is available to people who are between the ages of 18 and 65.
Whole life insurance rates by age and sex
|Coverage amount: $35,000Male: $263.42Female: $209.16|
Life Insurance For Seniors
Life insurance for seniors can be a bit trickier than it is for other age groups. Most insurance companies will not sell new life insurance policies to people over a certain age, usually around 70 to 80. For people who are older or suffer from pre-existing health conditions, a guaranteed life insurance policy may be the best or only option. This type of policy does not have a medical exam and coverage is guaranteed. However, even though coverage is guaranteed, affordability is not. These policies can be expensive. Guaranteed life insurance policies usually have a death benefit cap around $25,000.
Life insurance rates typically increase as you get older. However, insurance companies look at other factors, like your overall health, your gender, the type of policy you buy and the amount of coverage you need in order to calculate your personalized rate. If you are thinking about buying life insurance, it is a good idea to figure out what type of policy makes sense for your age, your budget and your coverage needs.
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How Much Is Life Insurance In Canada Average Rates For 2022
The average cost of life insurance per month in Canada is about$13 for $100,000 in coverage if you’re a healthy 30-year-old requesting a 10-year term life insurance policy with PolicyMe.
If you’re a 60-year-old smoker, your premiums will be over $100 per month for the same amount of coverage.
How much life insurance costs in Canada depends largely on your age. Monthly rates increase as you get older, as your risk to the insurer increases.
If you’re of average health for your age and your risk factor is low, your monthly premiums will be lower, too.
The chart below looks at the average cost of term life insurance by age from five leading Canadian life insurance solutions.
Gender: Average Life Insurance Cost Per Month
Your gender identity plays a small but important role, too.
According to a study by Harvard Medical School, women statistically live longer than men. Because of this, women pay less for their life insurance premiums.
Usually, typical policies are based on your self-identified gender instead of your gender at birth.
There isn’t yet an established protocol on gender for transgender applicants.Ã
The following table illustrates how monthly insurance premiums vary by gender.
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What Happens When A Whole Life Insurance Policy Matures
Most whole life policies endow at age 100. When a policyholder outlives the policy, the insurance company may pay the full cash value to the policyholder and close the policy. Others grant an extension to the policyholder who continues paying premiums until they pass. Others still stop collecting premiums, but keep the policy active until its needed.
How Does Cash Value Work
All forms of permanent life insurance build cash value.
The cash value in a life policy is similar to a behind-the-scenes investment account.
Every time you make a payment, a small portion is credited to the cash value account.
In addition, it typically earns interest.
As time goes on, the monies in this account will continue to increase.
There are a few ways policyholders can utilize the cash value with these types of life insurance.
- Withdraw the funds: You can take a loan from the cash value. You can use the money you withdraw in any way you desire. Please note that outstanding policy loans will reduce the death benefit payout. For example, lets assume you have a $50,000 death benefit and a $1,000 outstanding loan. If you died, only $49,000 would pay out.
- Reduced paid-up: This nonforfeiture provision would transform your policy into a permanent paid-up policy with a lower death benefit. A paid-up policy does not require any further premium payments. How much of a death benefit it would be reduced to depends on the cash value total when you exercise this option. You need to call the carrier to ask them for the precise values.
- Extended term insurance: This nonforfeiture provision provides temporary life insurance after the policys lapse point due to non-payment. How long the extended-term insurance lasts depends on the carrier and your cash value total when this provision is activated.
Also, some policies may not offer extended-term insurance.
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