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How much does life insurance cost?
The cost of life insurance can vary greatly, depending on the type of coverage you want, the amount of protection you need, and a host of other factors. This article will explore those factors more closely and provide some general guidelines that can help provide clarity.
KEY TAKEAWAYS
- Until you’re ready to make a buying decision, it’s often easier to look at price ranges when comparing policies and providers.
- Term life insurance is generally the most affordable; however, some permanent life policies may be a better value if you plan to keep your coverage for a long time.
- There are ways to lower the cost of life insurance—such as improving your health and eliminating risky behavior—but cutting benefits may not be worth the savings.
How much is life insurance?
Life insurance can be more affordable than many people think. In fact, a recent study conducted on behalf of the Life Insurance Marketing Research Association (LIMRA) found that 75% of American consumers overestimate the cost of life insurance.1 Monthly premiums can range anywhere from about $15 to $150 or more. However, actual life insurance costs can vary greatly depending on individual circumstances and other key factors. Please note that averages like this and others in this article are from third-party research firms and do not apply to specific New York Life policies.
“A $1 million life insurance policy with a 20-year term averages $30 a month for a 30-year-old woman and $37 a month for a (30-year-old) man.²”
How are life insurance quotes determined?
The cost of coverage is influenced by several key factors, including the type of policy you choose (such as term or permanent life insurance), the amount of protection you’re requesting, and personal risk factors like age, health history, lifestyle, and occupation. Generally, younger and healthier individuals may qualify for lower premiums, while higher coverage amounts and longer policy durations can increase costs. Understanding these variables can help you select a policy that fits both your protection needs and your budget.
Age
The age of an applicant is one of the most important factors in life insurance pricing. The younger you are when you get coverage, the lower your premiums are likely to be.
Related: When should you get life insurance
Gender
Since women typically live longer than men, their premiums are often lower than they would be for a male who is similar in age and health.
Tobacco use
Tobacco products have been proven to increase the risk of heart disease, lung cancer, emphysema, and countless other medical conditions. As a result, tobacco users will pay more in premiums than non-users.
Health and family history
Health factors are another major consideration that insurance companies look at when determining premiums. Since people with a history of health issues, or whose families have a history of health issues, are more at risk than healthy individuals, their premiums will reflect the additional risk.
Criminal history
While criminal history is not necessarily a health risk, it may reveal a pattern of risky behavior that could result in higher premiums.
Occupation
Since the risk of death or injury are higher in certain occupations than others (firefighters, police officers, construction workers, etc.), these people may have higher premium payments than those with low-risk occupations.
Amount of coverage requested
As you might imagine, the more insurance you get (the higher the face value), the higher the premiums are likely to be.
Type of Policy
The price you pay for coverage will also be determined by the type of policy you choose. Term life policies are generally the most affordable. However, whole life and other permanent life policies can be a better value if you need protection for a long time.
Average life insurance rates by age
While prices will vary by provider, here is an industry-wide look at the monthly premiums being charged for a typical 20-year term life policy for healthy non-smokers.3
|
$250,000 |
$18-$32 |
$216-$384 |
|
$500,000 |
$26-$55 |
$312-$660 |
|
$1,000,000 |
$48-$110 |
$576-$1,320 |
Shop by value, not life insurance rates
When comparing policies, it’s important to look beyond the cost and face amount. The level of service the insurance company provides, the company’s financial strength, and the flexibility of its products are important attributes that may increase the average cost of their life insurance policies, but they also improve the value of the policies. It’s important to consider all these factors when evaluating the quality of your coverage.
Ways to lower your life insurance cost
When comparing policies, it’s important to look beyond the cost and face amount. Service quality, financial stability, and product flexibility may raise policy costs, but can also enhance value. If you are thinking about buying life insurance in the future, you will be happy to hear that there may be some proactive steps you can take to help lower your premiums.
- Stop smoking: Smoking has proved to have significant health consequences, so smokers typically receive higher premiums than nonsmokers.
- Limit alcohol use: Heavy drinkers have a higher risk of health complications and will often pay more for their coverage.
- Adopt a healthy lifestyle: The state of your health is one of the key factors life insurance companies look at when determining your premiums. A healthy diet, regular exercise, and proper use of medications can go a long way toward reducing your premiums.
- Eliminate risky behavior: Are you a skydiver, mountain climber, or other extreme sports enthusiast? If so, your hobbies may cause you to receive higher rates than the average consumer.
- Watch your driving habits: A history of speeding, DUIs, or other potentially reckless behavior on the road will not just affect your auto insurance rates; it could affect your life insurance rates as well.
Why New York Life?
New York Life has been a mutual company for more than 180 years, delivering on its promises to policyholders. Earning solid grades from all four major ratings agencies, we offer a wide portfolio of products that can help you protect your financial future—and our agents are among the most knowledgeable in the business. No matter which type of insurance policy you decide on, make sure you fully understand what you are purchasing by meeting with someone you trust, like a financial professional, to ensure that the policy meets your goals and gives you the protection you need.
How much does life insurance cost: FAQs
Term insurance typically offers the lowest initial premiums. Permanent policies, such as whole life, generally cost more up-front but can deliver long-term value through lifelong coverage and additional features that term policies don’t provide.
At New York Life, our financial professionals are experts at helping consumers compare policies and prices. A financial professional doesn’t just line up quotes—they help you understand the differences in coverage, uncover gaps you might miss, and tailor solutions to your unique goals and budget. That way, you can make confident decisions based on your needs—not just the price tag.
Want to learn more about life insurance?
A New York Life financial professional can help determine what’s right for you.
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1”How to Convert Intent to Action: Closing the Life Insurance Coverage Gap,” LIMRA, April 24, 2025
2”Million-Dollar Life Insurance Policy: What it Costs and When It Makes Sense,” Wall Street Journal Buy Side, November 4, 2025
3Source: Agency Height: Average Life Insurance Cost and Rates in 2026 (By Age, Coverage & State)