Term life insurance is generally the least expensive way to buy a substantial death benefit because it provides coverage for a specified period and normally does not build cash value.

Current published rate averages illustrate how dramatically age can affect the cost. Forbes Advisor’s 2026 analysis reported the following average monthly premiums for a 20-year term policy with a $500,000 death benefit.

These are market averages, not guaranteed quotes. Your actual premium may be higher or lower after the insurer evaluates your application and underwriting information.

Whole life insurance generally costs much more than term life insurance because it is designed to provide permanent coverage and build cash value.

Forbes Advisor’s 2026 rate analysis found the following average monthly premiums for a $250,000 whole life policy among nonsmokers of average height and weight. Notice that this table uses a smaller death benefit than the $500,000 term table above, so the figures should not be treated as a direct apples-to-apples comparison.

Whole life premiums vary substantially by insurer, policy design, death benefit, health, age, underwriting class, payment schedule, and whether policy features such as dividends are involved.

The cheaper policy is not automatically the better policy. The meaningful question is whether you need coverage for a limited period or have a financial need expected to continue permanently.

Life insurance pricing is based heavily on mortality risk. As you get older, the statistical likelihood that the insurer will need to pay a death benefit during the coverage period increases.

That is why otherwise comparable term life premiums generally increase with the age at which the policy is purchased. Waiting can also create another cost risk: your health may change before you apply.

With a level term policy, the premium is generally fixed during the guaranteed level-premium period. Getting older after the policy is issued therefore does not normally cause the premium to rise every birthday during that period.

Health is another major underwriting factor. Depending on the application and insurer, underwriting may consider current and past medical conditions, prescriptions, height and weight, blood pressure, laboratory results, family medical history, and other information relevant to mortality risk.

Applicants who meet an insurer’s strongest underwriting criteria can qualify for more favorable rate classes. Applicants with medical conditions or other risk characteristics may receive a different rate class, pay a higher premium, have coverage modified, or in some situations be declined.

Each insurer has its own underwriting standards. A health condition that creates a significant price increase with one company may be treated differently by another.

Tobacco use can materially increase life insurance premiums. Insurers can have separate underwriting classifications for tobacco or nicotine users because those applicants can have different mortality expectations.

How cigarettes, cigars, vaping, nicotine replacement products, or other nicotine use are classified varies by insurer. If you recently stopped using tobacco or nicotine, ask when the insurer would consider you for a different underwriting classification rather than assuming the change is immediate.

A larger death benefit gives the insurer a larger potential claim obligation, so buying more coverage generally increases the premium.

The increase is not always proportional. A $1 million policy does not necessarily cost exactly twice as much as a $500,000 policy because insurers price coverage using rate bands and underwriting structures that vary by company.

That means reducing coverage simply to lower the premium can be a poor tradeoff if the smaller death benefit no longer addresses your family’s financial need.

A longer level term generally costs more because the insurer is guaranteeing coverage and a premium for a longer period, including years when you will be older.

Forbes Advisor’s 2026 analysis illustrates the difference for 30-year-old buyers purchasing $500,000 of term life insurance.

A shorter term may reduce the premium, but it should still cover the period during which the financial need exists. Buying a 10-year policy for a need likely to last 25 years can create another problem when the first term expires.

Life insurance underwriting can consider additional characteristics beyond age, health, and coverage amount. Depending on the insurer and policy, these can include:

Insurers do not necessarily weigh these factors identically. That can create substantial differences between quotes even when the death benefit and term length are the same.

Life insurers often place approved applicants into underwriting or risk classes. The names differ among insurers, but healthier applicants with fewer risk factors can generally qualify for more favorable rates.

Two people of the same age buying the same $500,000 policy can therefore receive very different premiums if one receives a top underwriting classification and the other is assigned a standard or higher-risk classification.

This is also why an online quote entered before underwriting should be treated as an estimate. The final premium can change after the insurer reviews the application.

Skipping a traditional medical exam does not automatically mean the insurer skips underwriting. Many modern policies use accelerated underwriting that can evaluate electronic health records, prescription information, application answers, and other approved data without requiring an in-person exam.

For applicants who qualify for accelerated underwriting, no-exam term rates can sometimes be competitive with traditionally underwritten policies.

Guaranteed-issue or simplified-issue policies are different. Policies requiring less health information may cost more for the amount of coverage provided because the insurer has less information available to distinguish lower-risk applicants from higher-risk applicants.

Life insurance should not be evaluated by monthly premium alone. A cheaper quote may represent a shorter term, smaller death benefit, different renewal structure, fewer conversion options, or fewer riders.

Permanent policies require even more careful comparison because the quoted premium does not by itself explain cash-value performance, internal charges, surrender values, guarantees, or the possibility that additional funding may eventually be needed under some policy designs.

The goal is not simply to minimize the premium. It is to buy enough appropriate coverage at a cost you can continue paying for as long as the insurance is needed.

Buy Coverage When the Need Arises

Life insurance generally becomes more expensive as you age. Applying while younger and healthier can allow you to lock in a lower level-term premium than waiting until later.

Compare Several Insurers

Insurers have different underwriting guidelines. Shopping multiple companies can be especially useful if you have a medical condition, unusual occupation, risky hobby, or other underwriting issue.

Choose the Policy Type That Matches the Need

If the financial need is temporary, term life may provide the required death benefit for substantially less than permanent insurance. Paying for permanent coverage solely because it has more features may not be useful if those features do not solve a financial need.

Choose Riders Selectively

Riders can add useful benefits, but some also increase the premium. Understand what each rider does and whether you need it before paying extra.

Review Tobacco and Health Factors

If your health or tobacco-use status has materially improved since an older policy was issued, obtaining new quotes may reveal different underwriting options. Do not cancel existing coverage until any replacement policy has actually been issued and reviewed.

A meaningful price comparison requires matching the important policy characteristics. Otherwise, you may be comparing different products rather than different prices for the same insurance.

Assuming an Online Quote Is the Final Premium

The final premium may change after underwriting. Treat an initial quote as an estimate until the insurer issues an offer.

Buying Too Little Coverage Just to Lower the Price

A low premium provides little value if the death benefit would not meaningfully address the financial need that led you to buy insurance.

Buying Permanent Insurance Without Understanding the Extra Cost

Permanent insurance can provide useful features, but those features generally come with substantially higher premiums. Understand why you need them before paying for them.

Comparing Policies With Different Terms

A 10-year term should naturally be expected to price differently from a 30-year term. Match coverage periods before concluding one company is cheaper.

Choosing a Premium You Cannot Maintain

A policy that lapses because its premiums become unaffordable may fail before the financial need disappears. Consider long-term affordability, not only the first payment.