How Much Does Term Life Insurance Cost Each Month?

Rates depend on age, health, coverage amount, and term length. A recent analysis of quotes from 21 carriers found that sample quoted premiums for a 40-year-old nonsmoker averaged $16 to $19 a month for $100,000 of coverage.

The table below shows sample term life insurance rates by age and coverage amount. The lower figure is the average for women. The higher figure is the average for men.

Age

$100,000

$250,000

$500,000

40

$16–$19

$28–$35

$47–$59

50

$30–$38

$59–$77

$102–$137

60

$74–$100

$157–$215

$286–$395

70 (10-year term)

$104–$150

$217–$321

$397–$600

Sample average monthly rates for nonsmokers in average health, published by MoneyGeek in September 2026. Ages 40 to 60 reflect a 20-year term. Age 70 reflects a 10-year term. For illustration only. This is not a quote, and your rate may differ.

Why Age Affects Term Life Insurance Rates

Age is one of the main factors in term life insurance rates. Insurers price each policy on the chance of a claim during the term. That chance rises with each birthday.

The sample figures show how fast the change comes. At 40, $500,000 of 20-year coverage averaged $47 to $59 a month. At 60, the same coverage averaged $286 to $395. That is about six to seven times the premium for the same coverage.

One detail is worth knowing. Fixed rate term life insurance sets the premium on the day the policy starts. The rate then stays level for the full term. That is why the age you apply at matters when you explore term life insurance costs.

What Else Shapes Your Monthly Premium

Age is not the only factor. Three more things help set your term life insurance cost.

Term length. A shorter term costs less each month. For a 40-year-old with $500,000 of coverage, 10 year term life insurance averaged $34 to $41 a month. 20-year term life insurance rates averaged $47 to $59. A 30-year term averaged $82 to $104.

Health class. Insurers sort applicants into rating classes based on health. At 40, the top class averaged $29 to $35 a month for a 20-year, $500,000 policy. The standard class averaged $52 to $66.

Tobacco use. Sample quoted premiums for smokers were about three times those for nonsmokers in the same analysis. A 40-year-old smoker averaged $148 to $194 a month for that policy.

Carriers such as Prudential and Nationwide each weigh these factors in their own way. As a result, term life insurance costs can differ between carriers for the same applicant.

What a Set Monthly Budget May Cover

Many shoppers start with a number they can afford, then ask what it covers. The sample rates illustrate term life insurance costs at different coverage levels.

•       About $30 a month. At 40, this was close to the average for $250,000 of 20-year coverage. At 50, it was close to the average for $100,000.

•       About $50 a month. At 40, this was close to the average for $500,000. At 50, it fell between the averages for $100,000 and $250,000.

•       About $100 a month. At 60, this was at the top of the average range for $100,000 of 20-year coverage.

Simple term life insurance keeps the price down by focusing on the death benefit alone. Providers like Transamerica and Nationwide offer term options at several coverage levels. Actual term life insurance costs depend on the applicant's profile and the coverage selected.

Cost Considerations for Older Applicants

People researching term life insurance for seniors over 60 often see the steepest price changes. At 65, a 20-year, $100,000 policy averaged $103 to $141 a month in the sample data.

Term length matters more at this stage. Longer terms become less widely available after 65. Ten-year terms may remain an option into the 70s with some insurers. At 70, a 10-year, $100,000 policy averaged $104 to $150 a month.

Pricing may also vary from one carrier to the next. Term life insurance providers such as MassMutual and New York Life each use their own health guidelines. Reviewing term life insurance costs and coverage limits can help older applicants assess options on a fixed income.

Conclusion

Term life insurance rates follow a clear pattern. They start low at younger ages, rise through the 50s, and climb faster after 60. Coverage amount, term length, health class, and tobacco use shape the rest of the price. The sample figures here are averages, not offers. Your own rate depends on your profile and the carrier you choose. Reviewing cost and coverage information from reputable providers can help clarify what these options may cost at your age.

Citations

This content was written by AI and reviewed by a human for quality and compliance.