Term life insurance costs between $15 and $50 per month for most people buying a 20-year policy, but the price depends on your age, health, how much coverage you buy, and which company you choose.

A 35-year-old in good health might pay $20 a month for $500,000 in coverage. A 55-year-old for the same amount could pay $80 to $120 monthly. Someone with diabetes or a history of heart disease pays more than someone with no health conditions. A $1 million policy costs roughly double what a $500,000 policy costs. The only way to know your actual price is to get quotes from multiple insurers, because they weight health factors differently and some specialize in people with medical histories.

Term life is cheaper than permanent life insurance (whole life or universal life) because it covers you for a set number of years—typically 10, 20, or 30 years—and pays out only if you die during that term. Once the term ends, coverage stops and you pay nothing more. Permanent policies last your whole life and build cash value, which is why they cost 5 to 15 times more per month.

Key Takeaways

  • Monthly premiums for a 20-year term policy range from $15 to $50 for younger, healthier people, and $80 to $150+ for older applicants or those with health conditions.
  • Your age at the time you buy is locked in for the entire term, so a policy bought at 40 stays at that rate even when you turn 50.
  • The insurance company will order medical records and may require a medical exam, which can take two to four weeks before your rate is final.
  • Paying annually instead of monthly usually costs less overall, though the difference varies by insurer.
  • Rates do not change during your term, but a new policy bought after your current term ends will cost more because you are older.

How age affects what you pay

Age is the single biggest factor in term life cost. Insurance companies use actuarial tables that show the risk of death at each age, and they price accordingly. A 30-year-old buying a 20-year term pays roughly one-third what a 50-year-old pays for the same coverage amount and term length.

The rate you lock in at purchase stays the same for the entire term, no matter how old you get. If you buy a policy at 40, you pay the 40-year-old rate for 20 years, even after you turn 60. This is why buying earlier is almost always cheaper over time—you lock in a lower rate for decades. Waiting five years to buy the same policy typically costs 30 to 50 percent more per month.

How much coverage you choose changes the price

Term life premiums scale roughly with the death benefit amount. A $250,000 policy costs less than a $500,000 policy, which costs less than a $1 million policy. However, the per-dollar cost is usually lower at higher amounts. A $1 million policy might cost $40 per month, while a $250,000 policy costs $12—not one-quarter the price, but close.

Most people buy between $500,000 and $1 million in coverage, though the right amount depends on your income, debts, and dependents. A rough guide: coverage equal to 8 to 10 times your annual income. Someone earning $60,000 might buy $500,000 to $600,000. Someone earning $100,000 might buy $800,000 to $1 million. The insurance company will ask about your income and debts during underwriting to make sure the amount you are requesting is reasonable.

Health conditions and medical underwriting

Your health history is the second-biggest cost factor after age. People with no health conditions get the best rates, often called "standard" or "preferred" rates. People with managed conditions like high blood pressure or diabetes pay more—sometimes 25 to 100 percent more, depending on how well-controlled the condition is and how long you have had it.

The insurance company learns about your health through a questionnaire, your medical records, and sometimes a medical exam. For policies under $500,000, many companies skip the exam. For larger amounts, expect a phone call with a nurse who asks health questions, and possibly a visit from a paramedic who takes your height, weight, blood pressure, and a blood or urine sample. This process takes two to four weeks. If you have had cancer, heart disease, or other serious illness, underwriting can take longer because the company requests detailed medical records.

Being honest on the health questionnaire matters. Lying about your health is called "misrepresentation," and if the insurance company discovers it during a claim investigation, they can deny the claim or cancel the policy. It is not worth the risk.

How term length affects monthly cost

A 10-year term is cheaper per month than a 20-year term, which is cheaper than a 30-year term. A 35-year-old might pay $12 per month for a 10-year, $20 per month for a 20-year, and $28 per month for a 30-year policy—all for $500,000 in coverage.

The longer the term, the more years the insurance company is at risk of paying out, so they charge more. However, the total amount you pay over the life of the policy is not always proportional. A 20-year policy at $20 per month costs $4,800 total. A 10-year policy at $12 per month costs $1,440 total, but then you have no coverage for the next 10 years unless you buy a new policy—which will cost more because you are older. The trade-off is between lower monthly payments now and lower total cost over time.

Monthly versus annual payment options

Most insurers let you pay monthly or annually. Paying annually usually costs 3 to 8 percent less than paying monthly, because the company gets the full year's premium upfront and does not have to process 12 separate payments. If your monthly premium is $30, paying annually might cost $345 instead of $360.

Some companies offer automatic bank draft for monthly payments at no extra fee, while others charge a small fee if you do not pay annually. Ask about the total annual cost under each payment method before you choose. If cash flow is tight, monthly payments are worth the small extra cost for the flexibility.

Why quotes vary so much between companies

Two insurers can quote you very different prices for the same coverage because they use different underwriting standards and risk models. One company might charge someone with high cholesterol 40 percent more; another might charge 15 percent more. One company specializes in older applicants and prices them competitively; another focuses on younger, healthier people and prices older applicants higher.

Getting quotes from at least three companies takes 15 to 30 minutes per company and can save you hundreds of dollars per year. You provide basic information—age, health history, smoking status, coverage amount, and term length—and the company gives you a preliminary quote. That quote is not binding and does not require a medical exam. Once you choose a company and formally apply, underwriting begins and your final rate may be slightly different from the preliminary quote, but usually within the same range.

Frequently Asked Questions

Do I have to take a medical exam to get term life insurance?

Not always. Policies under $500,000 often do not require an exam; the company relies on your health questionnaire and medical records. Larger policies usually do require an exam—a nurse or paramedic will visit your home or workplace to take your blood pressure, height, weight, and sometimes blood or urine samples. The exam is free and takes about 15 minutes.

Can I get term life insurance if I smoke?

Yes, but you will pay significantly more—often 2 to 3 times the non-smoker rate. Insurers define "smoker" as anyone who has used tobacco or nicotine products in the past 12 months, including e-cigarettes. If you quit smoking, you may be able to switch to non-smoker rates after one to two years, depending on the company.

What happens to my rate if I get sick during my term?

Your rate does not change. Once your policy is issued, your premium is locked in for the entire term, even if you develop a health condition later. This is one of the main reasons to buy term life while you are young and healthy—you lock in a low rate that cannot increase.

Is term life insurance cheaper if I pay annually instead of monthly?

Usually, yes. Paying the full year upfront typically costs 3 to 8 percent less than paying monthly. If your monthly premium is $30, annual payment might be $345 instead of $360. The savings vary by company, so ask about both options before you decide.

What if I do not need coverage after my term ends?

Your policy simply expires and you stop paying. There is no penalty or obligation to renew. If you do want coverage after the term ends, you can buy a new policy, but it will cost more because you are older. Some policies include a "conversion" option that lets you switch to permanent life insurance without a new medical exam, though the permanent policy will cost significantly more.