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How Much Does Term Life Insurance Cost?
Educational information only, not personalized tax, legal, or investment advice. Christian is a licensed insurance agent (NC Life & Health), not a CPA or registered investment adviser. Discuss your own situation with a qualified professional.
What term life costs at each age
NerdWallet's average rates, published October 1, 2026 from LifeStein.com data, use a $500,000 20-year term policy for a nonsmoker in preferred health, averaging the three lowest rates at each age. Annual premiums for men are $209 at 20, $213 at 30, $321 at 40, $810 at 50, and $2,335 at 60. For women they are $175, $182, $278, $636, and $1,640. As monthly equivalents that is about $17, $18, $27, $68, and $195 for men, and about $15, $15, $23, $53, and $137 for women. These are sample averages, not quotes, and your price will differ by insurer, health, and state.
What coverage amount does to the price
MoneyGeek's September 2026 survey of quotes from 21 carriers, for a 40-year-old nonsmoker in average health on a 20-year term, puts monthly premiums at $28 for $250,000, $47 for $500,000, and $86 for $1 million for women, and $35, $59, and $109 for men. Doubling the coverage does not double the price, because part of the premium covers the insurer's fixed costs. If you are choosing between $250,000 and $500,000, ask for both prices before you decide.
10 vs 20 vs 30 years
NerdWallet's October 2026 rates for a healthy 40-year-old nonsmoker on a $500,000 policy show the tradeoff clearly. A 10-year term runs $200 a year for a man and $175 for a woman. A 20-year term runs $321 and $278. A 30-year term runs $574 and $451. The longer term costs more each year but locks the rate in for longer. Match the term to the need: the years left on a mortgage, or the years until your kids are grown. A 30-year term bought at 50 is rarely offered, so older buyers usually choose 10 or 20 years.
What happens when the term expires
If you outlive the term, the policy ends and pays nothing. That is the deal with term life, and it is why the price is low. Many policies let you renew year by year after the term, but the renewal premium is set at your older age and is usually much higher. Some policies let you convert to permanent coverage during a stated window without a new medical exam. Read the conversion and renewal language before you buy, not after the term runs out.
What moves your price most
Age is the biggest driver, and the curve steepens after 50. Smoking is next: a 40-year-old man who smokes averages $1,448 a year for the same $500,000 20-year policy that costs a nonsmoker $321, in NerdWallet's October 2026 data. Health class matters too. For that same 40-year-old man, the annual premium is $321 in the best health class, $405 in preferred, and $631 in standard. Women pay less than men at the same age because women live longer on average. Term length and coverage amount round out the list.
| Term length | Annual premium at 40, $500,000 |
|---|---|
| 10 years | $200 a year for a man, $175 for a woman |
| 20 years | $321 a year for a man, $278 for a woman |
| 30 years | $574 a year for a man, $451 for a woman |
Your records checklist
- Decide the coverage amount from your debts, income to replace, and mortgage, not from a round number.
- Match the term length to the years the money is actually needed.
- Compare the same coverage, term, and health class across insurers.
- Check renewal and conversion language before you buy.
Common questions
- What is the cheapest age to buy term life insurance?
- Your 20s, when a $500,000 20-year policy runs about $15 to $18 a month for a healthy nonsmoker in NerdWallet's October 2026 sample rates. The price rises with every birthday, and it rises fastest after 50.
- Does my term life premium change during the term?
- On a level term policy, no. The premium stays the same for the full 10, 20, or 30 years as long as you keep paying. Renewal after the term is priced at your older age.
- Can I renew term life after the term ends?
- Many policies allow annual renewal, but the premium jumps to reflect your age at renewal. Some policies also let you convert to permanent coverage within a stated window. Check both options in the contract.
- Is $500,000 of term life enough?
- It depends on your income, mortgage, debts, and how many years your family would need support. A family earning $65,000 with a $220,000 mortgage and college ahead usually needs more than $500,000. Run the numbers with the DIME method first.
Sources and current instructions
Check the tax year and any later updates before acting. These are the primary sources used for this guide.