How Much Does A $100,000 Life Insurance Policy Cost? (2024)

We analyzed term life insurance quotes for $100,000 life insurance policies to determine the average cost. The cost of a 10-year, $100,000 term life policy is $7 a month on average for a healthy, 30-year-old nonsmoking woman. That same person would pay $11 a month on average for a 30-year, $100,000 term life policy.

Related:

• How Much Is A $250,000 Life Insurance Policy?
• How Much Is A $500,000 Life Insurance Policy?
• How Much Does A Million Dollar Life Insurance Policy Cost?

To have a life insurance policy that lasts longer, you’ll have to pay more. Deciding on the right policy length for your needs will depend on the items you want to cover with life insurance.

You don’t want your life insurance policy to end too soon, leaving your family’s financial needs unmet. But if you’re older, you may not need a longer policy because you no longer have young kids to put through college or large debts to pay off. Plus, if you’re buying life insurance when you’re older, it can be expensive to get a policy with a longer term. Another option to consider is whole life insurance, which is more costly but covers you for a lifetime.

Whatever your age, determine what you want to get out of a $100,000 life insurance policy and check the various term lengths to see which works best for your needs and finances. Don’t assume a longer term is too expensive without getting life insurance quotes first.

We analyzed rates for $100,000 life insurance, and for death benefits of $250,000 up to $1 million.

Evaluate the costs for a variety of death benefit amounts to see what you can afford. You may assume you can afford only $100,000 in life insurance, but find that you have the budget to bump up the payout and leave your loved ones in a better financial position.

Besides the type of life insurance you select, age and gender affect the cost of life insurance the most.

Buying Younger Means Paying Less for a $100,000 Life Insurance Policy

Age is a key rating factor for life insurance companies. The longer you delay buying a policy, the higher the rates will go. This is because your life expectancy is declining as you age, which means the risk for the insurance company increases. To lock in cheaper rates, buy coverage when you’re younger if possible.

Our analysis shows the savings you can enjoy if you buy a $100,000 life insurance policy in your 30s. If you put off buying a 20-year term policy until your 50s or 60s, you’ll end up paying much more:

• Waiting from age 30 to 40 to buy a 20-year term $100,000 policy causes the average monthly cost to jump by 22% for males and 13% for females.
• Waiting until age 50 to buy that same policy, the average monthly price increases 133% for males and 113% for females compared to the rates for a 30-year old.
• Waiting until age 60 to buy results in an average monthly rate hike of 489% for males and 375% for females compared to if you bought the policy when you were 30.

How Gender Affects the Cost of $100,000 Life Insurance

Gender is another main factor used to calculate life insurance costs. Females generally live longer, so they typically get better rates.

Our analysis shows that you don’t start paying more for $100,000 life insurance policies until you reach your 40s and that accelerates in your 50s and 60s, depending on the term length. The quotes for males increase more than females as they get older. Quotes are also higher for males for longer lengths of term life insurance, compared to females.

For example, let’s take a look at how gender affects monthly rates for a 20-year, $100,000 term life policy:

• At age 30, the rates are nearly identical for both genders with men paying only $1 more a month on average.
• At age 40, males pay 22% more per month than females. That’s $2 a month or $24 a year.
• At age 50, males pay 24% more per month than females, which is $4 more a month or $48 a year on average more for men.
• At age 60, males pay 39% more per month than females, which is a difference of $15 a month or $180 per year on average.

The first step to buying any term life insurance policy is zeroing in on the details of the policy you want.

Will a $100,000 life insurance policy be enough? Calculate the amount of coverage you’ll need to meet your outstanding obligations and your family’s financial needs. Evaluate your debt, whether you want to leave money for income replacement and whether you want to cover college costs for your kids.

After you have settled on the death benefit amount, it’s time to determine the length that works best. Do you want to make sure the policy will last through your working years, for income replacement? Should the policy last for the length of your mortgage?

Once you have the policy term and amount figured out, it’s time to compare life insurance quotes.

When shopping for a $100,000 life insurance, check if a medical exam is needed. Life insurance companies often want you to take a medical exam to evaluate your health. You may find no-exam life insurance policies available. But keep in mind that if you aren’t in very good health, you may not be eligible for a no-exam policy.

When you’re ready get $100,000 life insurance quotes, it’s helpful to have handy the following information:

• Dangerous hobbies, such as piloting planes and scuba diving
• Family medical history for immediate family, meaning parents and siblings
• Height and weight
• Lifestyle information, such as smoking and drinking
• Medications, both current and previous
• Personal medical information, knowledge of past and current health
• Plans to travel outside the United States

Be truthful on the application. Forbes Advisor’s ratings of the best term life insurance companies can help guide you to top picks.