It becomes more expensive to buy life insurance as you get older. We found that a 60-year-old can pay hundreds of dollars more per month for term life insurance than someone half their age.
While rates are more expensive, it’s still possible to find the coverage you need at an affordable price. We can help you compare quotes so you avoid paying more than you have to for coverage.
Life insurance terms you should know
Beneficiaries: The people you name on your life insurance policy to receive the lump sum of money — also known as the death benefit — when you die.
Cash value: The portion of a permanent life insurance policy’s monetary value that grows tax-deferred over the life of the policy.
Death benefit: The amount of money the life insurance company will pay your beneficiaries when you die.
Face amount: The dollar amount, or death benefit, your beneficiaries receive if you die while your life insurance policy is active.
Insured: The person who is covered by the insurance policy.
Policy: The legal document that includes the terms and conditions of your life insurance contract.
Policyholder: The person who owns an insurance policy. Usually, this is the same person as the insured.
Permanent life insurance: A type of life insurance that lasts for the rest of your life and usually includes a cash value account.
Premium: The amount you pay your insurance company to keep your coverage active. Premiums are typically paid monthly or annually.
Riders: Add-ons to a life insurance policy that provide more robust coverage, sometimes for an extra cost.
Term life insurance: A life insurance policy that lasts for a set number of years before it expires. If you die before the term is up, your beneficiaries receive a death benefit.
Underwriting: The process where an insurance company evaluates the risk of insuring you and determines your final rate.
How much does life insurance cost for older adults?
A 20-year, $250,000 term life insurance policy costs older adults an average of $293 a month, while the same amount of whole life coverage is $1,117 a month.
Keep in mind that these are just estimates — life insurance rates depend heavily on age and the amount of coverage you get, along with lots of other personal factors, which makes it impossible to provide one estimate for everyone.
That said, for both term and permanent life insurance, it’s generally true that the more coverage you get or the older you are, the higher your premiums will be.
Sample term life rates by length of policy and age
Term length | Age | Average monthly rate | Average yearly rate |
|---|---|---|---|
10 | 60 | $81 | $975 |
65 | $131 | $1,572 | |
70 | $229 | $2,754 | |
75 | $432 | $5,182 | |
80 | $939 | $11,264 | |
15 | 60 | $105 | $1,263 |
65 | $179 | $2,148 | |
70 | $325 | $3,899 | |
75 | $650 | $7,794 | |
20 | 60 | $147 | $1,762 |
65 | $252 | $3,022 | |
70 | $481 | $5,777 | |
25 | 60 | $214 | $2,571 |
65 | $365 | $4,379 |
Methodology: Approximate term-life rates are calculated for non-smokers obtaining a $250,000 life insurance policy. Term life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica, and the Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. Rate illustration valid as of 09/12/2024.
Sample term life rates by age and coverage amount
Age | Death benefit | Average monthly rate | Average yearly rate |
|---|---|---|---|
60 | $100,000 | $53 | $640 |
$250,000 | $105 | $1,263 | |
$500,000 | $186 | $2,232 | |
$750,000 | $276 | $3,314 | |
$1,000,000 | $342 | $4,104 | |
65 | $100,000 | $88 | $1,061 |
$250,000 | $179 | $2,148 | |
$500,000 | $334 | $4,005 | |
$750,000 | $498 | $5,974 | |
$1,000,000 | $608 | $7,297 | |
70 | $100,000 | $162 | $1,939 |
$250,000 | $325 | $3,899 | |
$500,000 | $621 | $7,450 | |
$750,000 | $928 | $11,142 | |
$1,000,000 | $1,130 | $13,556 | |
75 | $100,000 | $314 | $3,764 |
$250,000 | $650 | $7,794 | |
$500,000 | $1,269 | $15,234 | |
$750,000 | $1,902 | $22,819 | |
$1,000,000 | $2,431 | $29,166 |
Methodology: Approximate term-life rates are calculated for 60-year-old non-smokers obtaining a 15-year life insurance policy. Term life insurance averages are based on a composite of policies offered by Policygenius from Brighthouse Financial, Corebridge Financial, Foresters Financial, Legal & General America, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, Symetra, and Transamerica, and the Policygenius Life Insurance Price Index, which uses real-time data from leading life insurance companies to determine pricing trends. Rate illustration valid as of 09/12/2024.
Sample whole life rates by age and coverage amount
Age | Coverage amount | Average monthly rate | Average yearly rate |
|---|---|---|---|
60 | $5,000 | $26 | $315 |
$10,000 | $49 | $589 | |
$25,000 | $122 | $1,464 | |
$100,000 | $332 | $3,989 | |
$250,000 | $820 | $9,846 | |
$500,000 | $1,637 | $19,640 | |
$750,000 | $2,453 | $29,435 | |
$1,000,000 | $3,260 | $39,115 | |
$2,000,000 | $6,514 | $78,173 | |
65 | $5,000 | $32 | $387 |
$10,000 | $61 | $734 | |
$25,000 | $155 | $1,862 | |
$100,000 | $434 | $5,209 | |
$250,000 | $1,074 | $12,888 | |
$500,000 | $2,143 | $25,717 | |
$750,000 | $3,213 | $38,554 | |
$1,000,000 | $4,272 | $51,269 | |
$2,000,000 | $8,540 | $102,484 | |
70 | $5,000 | $42 | $503 |
$10,000 | $81 | $966 | |
$25,000 | $204 | $2,452 | |
$100,000 | $587 | $7,048 | |
$250,000 | $1,457 | $17,489 | |
$500,000 | $2,910 | $34,924 | |
$750,000 | $4,363 | $52,359 | |
$1,000,000 | $5,807 | $69,680 | |
$2,000,000 | $11,609 | $139,306 | |
75 | $5,000 | $55 | $661 |
$10,000 | $107 | $1,282 | |
$25,000 | $299 | $3,589 | |
80 | $5,000 | $76 | $915 |
$10,000 | $149 | $1,790 | |
$25,000 | $426 | $5,117 |
Methodology: Approximate monthly rates are calculated for non-smokers for a whole life insurance policy from Mutual of Omaha, Transamerica, and MassMutual. Rates may vary by insurer, term, coverage amount, health class, and state. Not all policies are available in all states. Rate illustration valid as of 09/12/2024.
Sample final expense rates for older adults
Age | Coverage level | Monthly premium | Yearly premium |
|---|---|---|---|
60 | $5,000 | $22 | $268 |
$10,000 | $42 | $506 | |
$15,000 | $62 | $741 | |
$20,000 | $82 | $978 | |
65 | $5,000 | $27 | $326 |
$10,000 | $52 | $621 | |
$15,000 | $76 | $916 | |
$20,000 | $100 | $1,206 | |
70 | $5,000 | $35 | $417 |
$10,000 | $67 | $802 | |
$15,000 | $99 | $1,188 | |
$20,000 | $131 | $1,573 | |
75 | $5,000 | $47 | $558 |
$10,000 | $90 | $1,085 | |
$15,000 | $134 | $1,611 | |
$20,000 | $178 | $2,138 | |
80 | $5,000 | $65 | $775 |
$10,000 | $127 | $1,519 | |
$15,000 | $189 | $2,263 | |
$20,000 | $251 | $3,007 |
Methodology: Rates are calculated for male and female non-smokers obtaining a simplified issue or guaranteed issue final expense whole life policy from Mutual of Omaha or Transamerica. Rates may vary by age and health class. Not all policies available in all states. Rate illustration valid as of 09/12/2024.
How much should you pay for life insurance?
There’s no set rule for how much life insurance should cost, but you can estimate the amount of life insurance you need to avoid paying for more coverage than you need.
A good place to start is by comparing your assets with your debt — you want to be sure your dependents can cover your debt with your life insurance if you die before paying it off.
If you no longer have debt and your beneficiaries can afford to live comfortably after you’re gone, you may no longer need life insurance coverage.
Do life insurance rates stay the same?
Although it gets more expensive to buy life insurance as you get older, most of the time your premiums are locked in once you buy coverage.
If your policy has graded premiums, your rates would go up over time. (These are different from graded death benefits, which changes the amount of money your beneficiaries receive based on when you die.)
All about life insurance for older adults
