Cost of Life Insurance: What to Expect & How to Save

Life insurance is one of those things many of us think we should get — but often don’t, because it seems complicated or expensive. If you’ve ever wondered what life insurance really costs, you’re not alone. The truth is, life insurance costs can vary depending on your age, health, and the type of coverage you choose.

This article can help simplify things. We’ll walk you through what goes into the average life insurance cost, explain how term life insurance cost compares to whole life insurance cost, and share tips on how to find the best prices for life insurance without overpaying.

Whether you're just starting to research what kind of policy might be right for you, or if you’re ready to get a quote, we'll help you feel confident about what to expect and how to make smart, cost-effective choices.

How Much Does Life Insurance Cost?

You might be surprised to learn that the average life insurance cost is lower than many people think. In a recent LIMRA study, the #1 reason people give for not owning life insurance is that they think it’s “too expensive.” Yet 72% of people overestimate the true cost of a basic term life insurance policy.1 In reality, a healthy 30-year-old woman could pay as little as $15 a month for a 20-year policy.2

But life insurance costs vary depending on several key factors, including:

• Age: The younger you are, the lower your rates typically are
• Health: Medical history, tobacco use, and BMI can all affect pricing
• Gender: Women often pay less because they statistically live longer
• Policy type: Term life insurance is typically less expensive than whole life insurance
• Coverage amount and term length: Higher coverage amounts and longer terms usually translate to higher premiums

These are the main drivers behind how premiums are calculated, and why two people with the same coverage might pay very different amounts. If you’ve ever wondered, how are life insurance rates set? – this is why the answer isn’t the same across the board. But with the right information and the right provider, it’s easier than ever to find a policy that fits your needs and budget.

Term Life Insurance Cost

When most people think of life insurance, they’re probably thinking about term life. And for good reason: term insurance is simple, flexible, and cost-effective for most budgets. Term life insurance provides coverage for a set period—or term—such as 10, 20, or 30 years, which is where it gets its name.

So, how much does term life insurance cost? While your rate depends on factors like age, health, and coverage amount, the average premium for a healthy 30-year-old man could be as little as $18 per month for a 20-year policy.

Here’s why term life insurance cost tends to be lower than other types of life insurance:

• It’s temporary: You’re only covered for a certain period of time (e.g. 10, 20, or 30 years).
• It has no cash value: You’re paying purely for protection, not for savings or to build cash value within your policy.
• It’s predictable: Premiums are fixed for the life of the term

Because of this, term life insurance is often a go-to option for families who want to protect income, cover a mortgage, or safeguard their kids’ futures without straining their monthly budget. Learn more about term life insurance policies available through Ethos.

Whole Life Insurance Cost

Unlike term life, whole life insurance provides permanent coverage that can last a lifetime as long as policy premiums are paid – that’s why it’s called ‘whole life’ insurance. Whole life policies also include a built-in savings component, so you’re paying for protection and also for the opportunity to save money in a tax-advantaged way. That added value means whole life insurance cost is significantly higher than term policies.

So how much could someone pay for whole life insurance coverage? According to NerdWallet3, the average premium for a healthy 30-year-old purchasing a $500,000 whole life policy is around:

• $4,311 per year (about $360/month) for a male
• $3,959 per year (about $330/month) for a female

At age 40, those numbers rise to:

• $6,387 per year (about $532/month) for a male
• $5,860 per year (about $488/month) for a female

Whole life insurance cost continues to rise with age and coverage amount, which is why it’s often considered by:

• Adults seeking permanent financial protection
• People focused on legacy planning or covering final expenses
• Those who want lifelong protection and the ability to build guaranteed4, tax-deferred savings over time

Ethos offers whole life insurance options with fixed premiums and a simplified, online application with no medical exam required.

How to get your best Price on Life Insurance

Life insurance isn’t one-size-fits-all—but there are smart ways to reduce your costs and find coverage that works for your budget. Whether you’re just starting to explore options or ready to compare quotes, a few key steps can help you find life insurance rates that can fit your budget.

• Apply sooner rather than later: Rates typically go up with age, so locking in a policy while you’re younger and healthier could result in big savings.
• Choose term life if you’re focused on affordability: Term life insurance is often significantly less costly than whole life for the same coverage amount.
• Don’t overbuy coverage: Use a life insurance needs calculator from a reputable site or speak with a professional to estimate how much you really need. Buying too much can drive up premiums.
• Improve your health where possible: Stopping tobacco use, lowering your BMI, and managing chronic conditions can all lead to better rates.
• Compare quotes before committing: Don’t assume the first offer is the best—shopping around helps you find the most competitive prices for life insurance.

And if you’re worried about complexity or time? Companies like Ethos streamline the process so you can apply online in minutes—often with no medical exam - Just a few health questions.

Why Ethos Offers Affordable Life Insurance

Ethos uses technology to streamline the process of applying for and buying life insurance – making it easier, faster, and more accessible. By removing traditional bottlenecks like in-person appointments and medical exams, Ethos helps keep costs down while still offering consistent, reliable coverage.

Here’s what helps make Ethos policies affordable:

• Instant underwriting: In many cases, you’ll get a decision right away—no weeks-long review process
• No medical exam required: Most applicants just answer a few health questions online
• Flexible options: Choose from a wide range of coverage amounts and term lengths, if you’re choosing term coverage.
• All-digital process: Apply from anywhere, anytime. No in-person meetings or agents required
• Trusted insurance partners: Ethos works with top-rated carriers to provide high-quality protection

Want to see how much life insurance might cost for you?

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FAQ's on Life Insurance Cost

Still have questions? You’re not alone. When it comes to understanding life insurance costs, many people want clear, no-nonsense answers. Below, we’ve answered some of the most common questions to help you make an informed decision.

How much does term life insurance cost per month?

• Term life insurance cost varies by age, health, and coverage amount.
• A healthy 30-year-old might pay around $15–$20/month for a 20-year, $500,000 policy.
• Term life is often more affordable than permanent options because it offers coverage for a limited time and doesn’t build cash value.

What is the average cost of whole life insurance?

• The average life insurance cost for a whole life policy is often significantly higher than a term policy.
• For a healthy 30-year-old, it may range from $330 to $360/month for $500,000 in coverage.
• Rates increase with age and are based on lifetime coverage plus cash value.

What factors impact my life insurance premiums?

Several factors influence life insurance costs:

• Age and gender
• Health history and lifestyle
• Tobacco use
• Coverage amount and term length
• Type of policy: term policies typically cost less than whole life policies

Are life insurance costs fixed?

• Most term and whole life policies offer level premiums, meaning your rate stays the same over time.
• Some policies (like annual renewable term) may increase over time—so it’s important to read the fine print.
• Other policies, like universal life and variable life policies, offer flexible premiums but still require a minimum amount to keep the policy in force.

How can I compare prices for life insurance policies?

• Get quotes from multiple providers and compare coverage amounts, terms, and premium types.
• Make sure you’re comparing similar policy types (e.g., term vs. term).
• Ethos makes it easy to compare prices for life insurance online—no medical exam required for most applicants.

Is life insurance more expensive if I have a health condition?

• It can be, depending on the condition and its severity.
• Chronic conditions like diabetes, high blood pressure, or high cholesterol may increase premiums, but not always. For example – if you have high blood pressure but it’s controlled with daily medications, you may not be adversely affected.
• Many applicants with manageable health conditions still qualify for affordable coverage, especially with simplified issue policies like those offered by Ethos.

Ready to Get Started?

Researching the type of life insurance that fits your budget doesn’t have to be complicated. Ethos makes it simple to get the coverage you need, on your terms and your timeline.

Whether you’re leaning toward term life for affordability or whole life for lifelong peace of mind, you can get a personalized quote in just a few minutes.

1. Life Insurance Barometer Study 2023, LIMRA.
2. Katia Iervasi. “Average Life Insurance Rates for July 2025.” NerdWallet, July 1 2025. Life insurance rates based on a $500,000, 20-year term life insurance policy for preferred applicants in good health.
3. Bernheim, Emily. “Whole Life Insurance: How It Works & Who Needs It.” NerdWallet, 21 Feb. 2023. https://www.nerdwallet.com/article/insurance/whole-life-insurance
4. Guarantees are based on the claims paying ability of the issuer

The information and content provided is for informational purposes only, and it is not to be considered legal, tax, investment, or financial advice, recommendation, or endorsement. You should consult with an attorney or other professional to determine what may be best for your individual needs.