What Is Term Life Insurance and How Much Does It Cost?
Term life insurance is the simplest and most affordable type of life insurance. Here's what it costs at every age and how to find the best rate.
General information, not professional advice — see terms of use.
Term life insurance provides a death benefit if you die during a specified term (10, 20, or 30 years). It has no cash value — pure protection.
Sample costs for a healthy non-smoker ($500,000 / 20-year term):
- Age 25: $20–$25/month
- Age 30: $22–$28/month
- Age 35: $28–$35/month
- Age 40: $42–$55/month
- Age 45: $65–$85/month
- Age 50: $110–$140/month
- Age 55: $185–$230/month
Women typically pay 20–30% less than men.
Factors affecting your rate: Age (biggest factor), health status, tobacco use, family medical history, and driving record.
How to get the best rate:
- Compare quotes from at least 5 companies — rates vary by 30–50% for identical coverage
- Use PolicyGenius or Term4Sale for comparison
- Improve health metrics before applying
- Buy sooner — rates increase with every year you age
Follow-up questions
What happens when term life insurance expires?
Coverage stops. Options at expiration: let it expire if you've met financial goals, renew annually at much higher premium (usually not cost-effective), convert to permanent insurance if your policy has a conversion option (no new medical exam), or apply for a new policy subject to current health and age.
Is term or whole life insurance better?
For the vast majority of people, term is the better choice. The same premium that buys $50,000 of whole life coverage can buy $500,000+ of term. The 'buy term and invest the difference' strategy nearly always outperforms whole life as an investment.
Can you get life insurance if you have a medical condition?
Yes, but premiums will be higher and some conditions may result in denial for standard coverage. Options: apply with multiple insurers (underwriting standards vary), consider guaranteed issue life insurance (no medical exam, but much lower coverage amounts and higher premiums), or group life insurance through your employer (no medical exam required).
More finance answers
This page is general information, not professional advice, and it may not reflect the latest rules where you live. For your own situation, talk to a qualified adviser. Spotted an error? Email per@upperia.se and we will fix it.