Life insurance typically costs between $20 and $50 a month for a healthy adult buying term coverage. Your exact rate depends on your age, health, policy type, and coverage amount. Final expense insurance for seniors runs higher, usually $30 to $80 a month, because it covers older applicants without a medical exam.
Most people think life insurance costs way more than it actually does. According to the 2025 Insurance Barometer Study from LIMRA and Life Happens, the youngest and healthiest adults overestimate the cost of a term life policy by 7 to 12 times its actual price. That’s a massive gap between what people assume and what they’d actually pay.
The truth is, life insurance can fit into almost any budget. A healthy 30-year-old can get $250,000 in term life coverage for less than a streaming subscription. The cost depends on a few key factors, and understanding them puts you in control of what you’ll pay.
This guide breaks down what life insurance really costs, how rates change by age, and what you can do to lock in the best price.
What Does Life Insurance Actually Cost?
There’s no single answer because life insurance pricing is based on your individual profile. But here are some general ranges to give you a starting point.
Term life insurance is the most affordable option. For a healthy adult in their 30s, a 20-year policy with $250,000 in coverage typically costs between $20 and $35 a month. That’s the most common type of policy sold in the U.S., and it’s what most families use to protect their income.
Final expense insurance, which is a type of whole life policy designed for seniors, costs more per dollar of coverage. That’s because it covers older applicants and doesn’t require a medical exam. Monthly premiums for final expense policies generally range from $30 to $80 depending on your age and coverage amount.
The bottom line: life insurance is more affordable than most people expect, especially if you apply while you’re younger and in good health.
Life Insurance Cost by Age
Age is the single biggest factor in what you’ll pay. Every year you wait, your premiums go up. That’s because insurance companies base their rates on life expectancy, and the older you are, the higher the risk.
Here’s a general look at how monthly rates change by age for both term life and final expense policies.
| Age | Term Life (20-Year, $250K) | Final Expense ($15K-$25K) |
|---|---|---|
| 30 | $15-$25/month | N/A |
| 40 | $25-$40/month | N/A |
| 50 | $50-$90/month | $30-$50/month |
| 55 | $75-$130/month | $40-$65/month |
| 60 | $120-$200/month | $50-$80/month |
| 65 | $180-$300+/month | $60-$100/month |
| 70 | Limited availability | $75-$130/month |
Rates are estimates for non-tobacco users. Actual quotes vary by health, gender, and carrier.
The takeaway here is simple. Locking in a policy at a younger age can save you a significant amount over the life of your coverage. A 30-year-old pays a fraction of what a 50-year-old pays for the same term policy.
6 Factors That Affect Your Life Insurance Rates
Your premium isn’t random. Insurance companies use a specific set of factors to calculate your rate. Here are the six that matter most.
- Age. The younger you are when you apply, the less you’ll pay. Rates increase each year as mortality risk rises.
- Health and medical history. Conditions like diabetes, heart disease, or high blood pressure can raise your premiums. Insurers review your medical records and may require a health exam.
- Tobacco use. Smokers pay significantly more, often two to three times the rate of a non-smoker. Most companies require you to be tobacco-free for at least 12 months to qualify for non-smoker rates.
- Policy type and coverage amount. Term life costs less than permanent policies like whole life or final expense. And the more coverage you buy, the higher your premium.
- Term length. A 10-year term costs less than a 20-year or 30-year term. Longer coverage periods mean more risk for the insurance company.
- Gender. Women generally pay less than men for the same coverage. This is because women have a longer average life expectancy.
Some of these factors are out of your control. But others, like quitting tobacco or applying at a younger age, can make a real difference in what you pay.
Term Life vs. Final Expense: Cost Differences
Best Life Quote specializes in two types of life insurance, and they serve very different needs at very different price points.
Term life insurance is the most affordable way to get a large amount of coverage. It lasts for a set period, usually 10, 20, or 30 years, and pays a death benefit if you pass away during that term. There’s no cash value component, which is why it costs so much less. This is the go-to option for working families who need income replacement, mortgage protection, or coverage while kids are growing up.
Final expense insurance is a smaller whole life policy designed to cover end-of-life costs like funeral expenses, medical bills, and other debts. Coverage amounts are typically between $5,000 and $25,000. Because it’s permanent coverage with no medical exam required, the cost per dollar of coverage is higher than term. It’s built for seniors, typically ages 50 to 85, who want to make sure their family isn’t stuck with burial costs. If you’re over 50, explore your affordable life insurance options for those over 50.
The right choice depends on your stage of life and what you’re trying to protect. If you’re under 60 and need substantial coverage, term life is almost always the better value. If you’re a senior focused on covering funeral costs, final expense insurance is designed for exactly that.
How to Get the Best Life Insurance Rates
You don’t have to settle for the first quote you see. A few smart moves can help you lock in a better rate.
Apply while you’re young and healthy. This is the most effective thing you can do. A policy you buy at 30 will always be cheaper than one you buy at 50, even if your health stays the same.
Quit tobacco. If you currently smoke or use nicotine products, quitting now can dramatically lower your premiums. Most carriers require 12 months tobacco-free to offer non-smoker rates.
Compare quotes from multiple carriers. Every insurance company weighs risk factors differently. One carrier might give you preferred rates while another offers standard. Working with an independent agent means you’re not locked into a single company’s pricing. You can start by reviewing the best life insurance companies to see which carriers fit your needs.
Don’t overbuy or underbuy. Getting the right coverage amount keeps your premiums in check. A common guideline is 10 to 15 times your annual income for term life, but your actual needs depend on your debts, dependents, and financial goals.
Skip guaranteed issue if you can qualify for underwriting. Guaranteed issue policies accept everyone regardless of health, but they come with higher premiums and lower coverage. If you can answer health questions or take a medical exam, you’ll get a much better rate.
Frequently Asked Questions
Is life insurance really only $20-$30 a month?
It can be, yes. A healthy person in their 30s can often get a 20-year term policy with $250,000 in coverage for around that range. Your actual rate depends on your age, health, and the amount of coverage you choose.
Does life insurance get more expensive as you age?
Yes. Age is the biggest factor in life insurance pricing. Every year you wait to apply, your premiums will be higher. That’s why applying sooner rather than later is one of the best ways to save.
Can I get life insurance with a pre-existing condition?
In most cases, yes. Many carriers approve applicants with conditions like diabetes, high blood pressure, or a history of cancer. Your rates may be higher, but an independent agent can help you find the carrier most likely to offer the best rate for your situation.
What type of life insurance is cheapest?
Term life insurance is the least expensive option. It provides coverage for a set number of years without building cash value, which keeps premiums low. It’s the most popular choice for families on a budget.
How much life insurance coverage do I need?
A common starting point is 10 to 15 times your annual income. You should also factor in your mortgage balance, other debts, and future expenses like your children’s education. A quick conversation with an agent can help you dial in the right number.
Key Takeaways
- Term life insurance costs between $15 and $50 a month for most healthy adults, making it far more affordable than most people think.
- Age is the biggest cost factor. Locking in a policy while you’re younger saves you money for the life of your coverage.
- Final expense insurance costs more per dollar of coverage but is designed for seniors who need burial and end-of-life protection without a medical exam.
- Comparing quotes through an independent agent is one of the best ways to find the lowest rate for your specific health and coverage needs.
Ready to see what life insurance costs for you? Use our free quote tool to compare rates from top-rated carriers in minutes, or call us at 800-712-8519 to talk with an experienced agent.
