Menu burger Close thin Facebook Twitter Google plus Linked in Reddit Email arrow-right-sm arrow-right
Tap on the profile icon to edit
your financial details.

What Is the Average Life Insurance Rate for 2020?

Life insurance rates are constantly changing, and each person’s life insurance policy is different. For instance, rates can vary by age, gender, health, employment, weight and family health history, as well as whether or not the insured smokes, does drugs or drinks alcohol. While typical economic indicators are less likely to affect life insurance rates, general trends like your country’s life expectancy may affect the price of your policy.

Your life insurance policies should be a part of your financial plan. Talk to a local financial advisor about your long-term plans.

Average Life Insurance Rates for 2020

As we mention above, the life insurance rate you receive will depend on a number of variables. These factors can be quite basic, with men, for example, paying slightly higher rates than women.

According to a 2020 study by ValuePenguin, here are the average life insurance rates for males and females between the ages of 30 and 50:

2020 Average Life Insurance Rates by Gender
Age Gender Average Annual Cost for a $500,000 Policy
30 years old Male $314.40
Female $264.76
40 years old Male $457.69
Female $386.32
50 years old Male $1,098.41
Female $866.63

Smoking is another major factor that affects your life insurance rate. This should come as no surprise, as smoking has been linked to a number of serious health issues. Again, ValuePenguin’s 2020 report breaks down the price differences between smokers and non-smokers by age.

2020 Average Life Insurance Rates for Smokers & Non-Smokers
Age Average Monthly Cost for Smokers Average Monthly Cost for Non-Smokers
25 years old $86.23 $25.67
30 years old $92.14 $26.20
35 years old $118.36 $29.80
40 years old $183.87 $38.14
45 years old $281.94 $59.78
50 years old $441.69 $91.53
55 years old $689.91 $146.39
60 years old $1,076.23 $245.81
65 years old $1,644.78 $473.66

How Are Life Insurance Rates Determined?

There are several important factors that go into how companies price their life insurance policies. First, they look at a variety of factors, including both general and extremely specific ones. Your age and gender play a large role in determining your price for life insurance. This is in addition to other major health factors, such as whether you smoke, how dangerous your job is and where you live.

The cost of life insurance also heavily depends on the size of the policy you’re looking to take out. In turn, larger and broader policies are more expensive. Your life expectancy shrinks as you age, so life insurance also becomes more expensive the older you are. Men also pay more for life insurance than women.

Bottom Line

What Is the Average Life Insurance Rate for 2020?

Life insurance rates ultimately depend on the individual that the policy covers. However, it’s still important to be up to date on what the average rates for life insurance are so you can make an informed decision.

Life insurance rates mainly tend to change based on age and overall health. In turn, figure out where your rates should fall among the average rates for other Americans like you.

Insurance Tips

  • Life insurance can be complicated, and you don’t want to leave your loved ones in a less than ideal situation should they need to make a claim. A financial advisor can help you pick and manage your policy, and finding one doesn’t have to be hard. In fact, SmartAsset’s free tool matches you with financial advisors in your area in just five minutes. Get started now.
  • When searching for life insurance, you may find yourself asking how much coverage you really need. Try using SmartAsset’s free life insurance calculator to figure that out.

Photo credit: ©, © Zigic

Sam Lipscomb, CEPF® Sam Lipscomb is a writer for SmartAsset. His work spans a wide variety of personal finance topics with expertise including retirement, investing and savings. He is particularly well versed in credit cards. Sam has been featured in The Economist and on The Points Guy. He is a Certified Educator in Personal Finance (CEPF®). Sam graduated from Kenyon College with a degree in Economics and enjoys being a go-to resource for family and friends when it comes to personal finance. Originally from Washington, DC, Sam loves all things aviation and is a Cleveland sports fan. He currently lives in New York.
Was this content helpful?
Thanks for your input!