Compare Life Insurance Rates
Your life insurance rates fluctuate depending on your age, the type of policy and the life insurance company you choose. If you’re ready to purchase a life insurance policy, learning about how rates are set with a term, whole or universal policy can help you make an educated financial decision. Having a guide to help you compare rate costs can help you get the best life insurance premium rate.
- Written by Lindsey Crossmier
Lindsey Crossmier is an accomplished writer with experience working for The Florida Review and Bookstar PR. As a financial writer, she covers Medicare, life insurance and dental insurance topics for RetireGuide. Research-based data drives her work.Read More
- Edited ByLamia Chowdhury
Lamia Chowdhury is a financial content editor for RetireGuide and has over three years of marketing experience in the finance industry. She has written copy for both digital and print pieces ranging from blogs, radio scripts and search ads to billboards, brochures, mailers and more.Read More
- Financially Reviewed ByEric Estevez
Owner of HLC Insurance Broker, LLC
Eric Estevez is a duly licensed independent insurance broker and a former financial institution auditor with more than a decade of professional experience. He has specialized in federal, state and local compliance for both large and small businesses.Read More
- Published: September 30, 2022
- Updated: May 23, 2023
- 7 min read time
- This page features 13 Cited Research Articles
- Edited By
Life Insurance Rates by Age
No matter what type of life insurance you choose, the older you are, the more expensive your premiums will be. While there are many factors that influence your life insurance rate, your age is one of the most important, according to the Farm Bureau Financial Services.
Generally, your premium rate increases by 8% to 10% each year you age until you’re 50 years old. After you turn 50, your premiums are likely to increase by 9% to 12% each year.
The two main types of life insurance are term and permanent. Term offers temporary coverage for 10-, 20- or 30-year lengths.
Whole and universal are the two main types of permanent life insurance. They both offer lifelong coverage.
When you are comparing term, whole and universal rates by age, know that term life is known to have the most affordable premium rate. Whole life rates can be five to 15 times more expensive compared to term life insurance. According to Nationwide, universal life is typically more affordable than whole life insurance.
Having an estimate on rates by age for each type of life insurance can help you make comparisons to decide which is best for you.
|Type of Policy/Age||30||50||70|
If you’re older and don’t have a large budget for life insurance premiums, you may want to consider comparing term quotes.
If you’re younger and have ample funds for life insurance premiums, you could benefit from comparing whole and universal life quotes
How to Compare Life Insurance Quotes
To best compare life insurance quotes, you first need to determine your coverage needs. You’ll get the most precise quotes to compare if you provide the life insurance company with ample information.
You should always compare quotes from multiple insurers before purchasing a policy. Do not purchase a policy from the first life insurance company who provides you a quote.
- Is this policy giving me the coverage amount and length I need?
- Does this policy include any extra benefits, like having a cash value component or rider?
- Is this quote the average cost for someone my age?
You should also consider your overall health when comparing quotes. With some policies, you need to pass a medical exam to get life insurance coverage. If you’re in good health, a medical exam shouldn’t be an issue.
However, if you’re found to be in poor health after the medical exam, your premium quote will increase. In some cases, you could even be denied coverage. If you’re concerned about your health, you should compare life insurance policies that don’t require a medical exam.
Determining this information will help you decide which type of life insurance you’d benefit from. If you’re having difficulty deciding what type of life insurance you need, or just comparing quotes in general, you can get a broker or agent to assist you.
|10-Year Term Life||Whole Life||Universal Life|
|Sample Premium Rate||$36.16*||$666.94*||$390.52*|
|Coverage Length||Temporary coverage||Lifelong coverage||Lifelong Coverage|
|Key Takeaway||Affordable, limited coverage.||Simple, lifelong coverage.||Flexible, lifelong coverage.|
Comparing Term Life Insurance Quotes
When comparing term life insurance quotes, know that your term length will influence your quote cost. The longer your term length, the more expensive your quote will be. Typical term lengths are 10, 20 and 30 years.
For example, if you’re a healthy 40-year-old woman looking to get $1 million of coverage, a 10-year term policy would be $53.17. In the same scenario, but with a 30-year term policy, the quote is now $137.88.
Make sure you compare term quotes with the same term length, so you can compare the costs accordingly. Life insurance companies often provide different quotes, despite having the same amount and length of coverage.
|Life Insurance Company||Average Term Life Insurance Quote|
|Mutual of Omaha||$74.18|
When comparing term quotes, they aren’t as complex as permanent quotes. Term policies do not have a cash value component, and they do not have flexible premiums. The only other benefit to consider when comparing term quotes is if a rider can be included with the policy.
For example, with Foresters Financial Life Insurance, their term life insurance can include three riders at no additional cost. In most cases, riders increase your premium quote. A free rider should be accounted for when comparing term quotes.
Comparing Whole Life Insurance Quotes
When comparing whole life insurance quotes, keep in mind that this type of permanent insurance is the most expensive.
Whole life is costly due to having lifelong coverage and a cash value component. Your death benefit and premiums are also fixed with a whole life policy.
Knowing general estimated costs by age for whole life insurance can help guarantee that you’re choosing the best premium quote when comparing policies.
Make sure to compare whole life quotes from multiple insurers. Some may offer options without a medical exam, or include riders, which can increase your premium quote.
Comparing Universal Life Insurance Quotes
Universal life insurance quotes are more affordable than whole life, but more expensive than term life.
Lifelong coverage is included with universal life, but the premiums and death benefit are flexible, meaning you can modify the amounts. Universal life also has a cash value component.
Some universal life policies, like variable universal, have financial risk involved. Your cash value can be tied to sub accounts with stocks and bonds.
With indexed universal policies, your cash value is linked to an index, like the S&P 500. Because of universal life insurance’s flexibility and risk, it may be best to get an agent or broker to help you compare quotes.
- How flexible are my premiums and death benefit?
- Could I skip a premium payment?
- How does my cash value grow with this type of universal policy?
Make sure to compare universal quotes from multiple insurers before making a financial decision. Below is a comparison between two universal quotes from two different insurers at different coverage amounts.
|Life Insurance Company||Universal Life Insurance Quote|
|AIG (50-year-old man with $250,000 coverage)||$239|
|Haven Life (40-year-old man with $500,000 of coverage)||$249.50|
Choosing the Best Life Insurance Company
To ensure you’re choosing a trustworthy life insurance company, you should check their financial strength, reliability and quality. There are three online databases to confirm the insurer’s quality — J.D. Power, A.M. Best and the Better Business Bureau (BBB).
- J.D. Power
- Rates numerically on a 1,000 scale
- Ratings are based on communication, interaction, price, product offering and statement
- A.M. Best
- Rates alphabetically, from A++ to D
- Ratings are based on the insurance company’s financial strength and ability to payout benefits
- Better Business Bureau (BBB)
- Rates alphabetically, from A+ to F
- Ratings are based on how many complaints are received, if they have been resolved, how long the complaints have been filed and the size of the business
- Shows if the life insurance company is accredited by the BBB, meaning they are likely to resolve any complaints
13 Cited Research Articles
- Maxwell, T. (2022, April 30). Why Is Whole Life Insurance More Expensive Than Term Life? Retrieved from https://www.experian.com/blogs/ask-experian/why-is-whole-life-insurance-more-expensive-than-term-life/
- Freedman, D. (2022, March 28). Term vs. Permanent Life Insurance. Retrieved from https://www.usnews.com/insurance/life-insurance/term-vs-permanent
- Nyerges, S. (2022, March 28). How Much Does Life Insurance Cost? Retrieved from https://www.usnews.com/insurance/life-insurance/how-much-does-life-insurance-cost
- Threewitt, C. & Lobb, J. (2022, January 6). Life Insurance Quotes. Retrieved from https://www.usnews.com/insurance/life-insurance/quote
- J.D. Power. (2021, October 2021). Pandemic and Tax Code Change Spur Interest in Life Insurance, J.D. Power Finds. Retrieved from https://www.jdpower.com/business/press-releases/2021-us-individual-life-insurance-study
- Farm Bureau Financial Services. (2020, August 4). 8 Factors That Can Affect Life Insurance Premiums. Retrieved from https://www.fbfs.com/learning-center/8-factors-that-can-affect-life-insurance-premiums
- Brennan, C. (2019, March 15). What Is Universal Life Insurance? Retrieved from https://havenlife.com/blog/universal-life-insurance/
- A.M. Best. (n.d.). Guide to Best’s Financial Strength Ratings — (FSR). Retrieved from https://www.ambest.com/ratings/guide.pdf
- Better Business Bureau. (n.d.). Start With Trust. Retrieved from https://www.bbb.org/
- AIG Direct. (n.d.). Life Insurance Quotes and Rates. Retrieved from https://www.aigdirect.com/life-insurance-basics/life-insurance-rates
- AIG Direct. (n.d.). How Does Age Affect Life Insurance? Retrieved from https://www.aigdirect.com/about-life/planning-for-life-insurance/life-insurance-and-age
- Foresters Financial. (n.d.). Term Life Insurance. Retrieved from https://www.foresters.com/en/financial-solutions/life-insurance/term-life-insurance/your-term
- Nationwide Mutual Insurance Company. (n.d.). Universal Life Insurance. Retrieved from https://www.nationwide.com/personal/insurance/life/universal/
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