How much does life insurance cost?

A healthy 35-year-old can typically purchase a 20-year, $500,000 term life policy for $25–$35/month. Whole life insurance costs 5–15× more for the same death benefit. Premiums vary based on age, health, coverage amount, and policy type — always compare quotes from multiple carriers.

Life insurance pricing is driven by actuarial risk: how likely the insurer is to pay a death benefit during the policy term. The younger and healthier you are when you apply, the lower your premium. The NAIC consumer guide on life insurance recommends comparing quotes from multiple companies, since rates for the same health class can differ significantly across carriers.

Term life insurance benchmarks

Term life insurance covers you for a defined period — typically 10, 20, or 30 years. If you die during the term, the insurer pays the death benefit; if you outlive the term, coverage ends (with no cash value). It is the simplest and least expensive form of life insurance.

Healthy 30-year-old, $500K, 20-year term: approximately $20–$30/month — varies, verify current quotes.
Healthy 35-year-old, $500K, 20-year term: approximately $25–$40/month — varies.
Healthy 45-year-old, $500K, 20-year term: approximately $60–$90/month — varies.
Health class matters: Standard Plus and Preferred health classifications can cut premiums by 25–40% versus Standard.
Smokers pay significantly more: tobacco use typically doubles or triples the premium.

Whole life insurance — much higher cost

Whole life insurance is permanent — it covers you for life and builds cash value over time. The tradeoff: premiums are typically 5–15× higher than term for an equivalent death benefit. A 35-year-old buying $500,000 of whole life coverage might pay $300–$600/month or more depending on the insurer and policy structure. The III's guide to types of life insurance explains the differences and when permanent coverage makes sense.

What the underwriting process evaluates

Age at application: the single biggest rate driver — lock in rates when you're young.
Health history: medical exam results, prescription history, family history of serious illness.
Tobacco and nicotine use: smokers pay significantly higher rates for 2–5 years after quitting before qualifying for non-smoker rates.
Occupation and hobbies: hazardous jobs (logging, commercial diving) or hobbies (aviation, motorsports) may add a surcharge or exclusion.
Coverage amount and term length: longer terms and larger death benefits cost more.

Sources

The NAIC recommends consumers obtain quotes from multiple life insurance companies and compare both premiums and company financial strength ratings before purchasing. — NAIC — Life Insurance Buyer's Guide
The III documents that term life insurance is typically the least expensive form of life insurance; whole life and universal life premiums are substantially higher for equivalent death benefits. — III — Types of Life Insurance

Key takeaways

A healthy 35-year-old can buy $500K of 20-year term life coverage for roughly $25–$40/month — verify current quotes.
Whole life insurance costs 5–15× more than equivalent term coverage due to permanent coverage and cash value features.
The younger and healthier you apply, the lower the rate — locking in coverage in your 30s is generally cheaper than waiting.
Tobacco use typically doubles or triples premiums; rates improve 2–5 years after quitting.
Compare multiple carriers — rates for the same health class vary meaningfully across insurers.

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