Term Life Insurance Cost

Term life insurance for a healthy 30-year-old costs $15-$25/month for $500,000 in coverage (20-year term). Costs increase with age: 40-year-old: $25-$45/mo, 50-year-old: $60-$120/mo, 60-year-old: $150-$300/mo.

The cheapest term life insurance is typically 10-year term policies from highly rated carriers. Companies with competitive rates include Haven Life, Bestow, Banner Life, and Pacific Life. Online-only no-exam policies may cost slightly more but offer instant approval.

20-year term is best if you need coverage until your mortgage is paid or kids graduate college. 30-year term is best for younger buyers who want longer protection. 30-year terms cost 30-50% more than 20-year terms for the same coverage amount.

When your term expires, coverage ends. You stop paying premiums and have no death benefit. Options: let it lapse, renew at a much higher rate, convert to permanent insurance (if your policy has a conversion rider), or buy a new policy (subject to new health underwriting).

A common guideline is 10-15x your annual income. Example: $75,000 income = $750,000-$1,125,000 in coverage. Also consider: outstanding debts, mortgage balance, children's education costs, spouse's income replacement needs, and funeral expenses ($7,000-$12,000 average).