Key points
- A $100,000 10-year term life insurance policy costs an average of $7 per month, or $84 per year, for a 30-year-old, healthy nonsmoker.
- Buying life insurance at a younger age can reduce how much you pay for a $100,000 policy.
- Shopping around is key to finding the best life insurance for your financial goals and budget.
Buying a life insurance policy can offer some peace of mind that your loved ones will receive a death benefit if you die. How much coverage you need will depend on your personal financial situation.
For some people, $100,000 in life insurance might be enough. For others, a larger amount may be necessary. Opting for a $100,000 life insurance policy could save money on premiums, but it’s important to make sure your coverage is sufficient for your needs.
Explore life insurance:
- How much does a $250,000 life insurance policy cost?
- How much does a $500,000 life insurance policy cost?
- How much does a $1 million life insurance policy cost?
How much does a $100,000 life insurance policy cost?
According to our analysis of term life insurance rates for a 30-year-old nonsmoker in good health, these are average premiums for a $100,000 term life insurance policy.
- 10-year term: $7 per month.
- 20-year term: $8 per month.
- 30-year term: $11 per month.
A term life policy locks in your rate for a level term period, such as 10 years. Should you pass away while the policy is in force, your named beneficiaries will receive the death benefit, in this case, $100,000. You can usually renew your term policy or purchase a new one at the end of your level term period, but you will likely see higher rates.
Different factors can influence the cost of a $100,000 term life insurance policy. The lowest term life insurance rates are typically offered to people who are younger, female and choose term life coverage over other types of life insurance.
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Average cost for a $100,000 life insurance policy, by age and gender
If you’re considering term life insurance, the term length will also make a difference in how much you pay. Here’s how much a $100,000 term life policy may cost depending on age, gender and term length.
Monthly cost for $100,000 10-year term life insurance policy
| AGE | MALE | FEMALE |
|---|---|---|
| 30 | $8 | $7 |
| 40 | $8 | $8 |
| 50 | $14 | $13 |
Monthly cost for $100,000 20-year term life insurance policy
| AGE | MALE | FEMALE |
|---|---|---|
| 30 | $9 | $8 |
| 40 | $11 | $9 |
| 50 | $21 | $17 |
Monthly cost for $100,000 30-year term life insurance policy
| AGE | MALE | FEMALE |
|---|---|---|
| 30 | $12 | $11 |
| 40 | $16 | $15 |
| 50 | $36 | $28 |
How much does a $100,000 whole life insurance policy cost?
The average cost of a $100,000 whole life insurance policy is about $88 a month, or $1,056 a year, based on our analysis of whole life insurance quotes for a 30-year-old nonsmoker in good health.
Whole life insurance offers permanent coverage, meaning it typically lasts your lifetime as long as you pay your premiums. As with term life insurance, your rates and death benefit are set at a fixed amount that cannot be altered.
Whole life policies typically include a cash value component that accrues over time at a fixed rate, which you can withdraw or borrow from while alive. It’s usually tax-deferred as long as you follow the guidelines of the IRS. Just keep in mind that cash withdrawals or unpaid loans may reduce the policy’s death benefit.
When calculating your whole life insurance rates, insurers will factor in your age, gender, health history, nicotine use and more.
Average monthly cost for a $100,000 whole life insurance policy
Here’s how much you might expect to pay a month for a $100,000 whole life insurance policy at different ages for males and females.
| AGE | MALE | FEMALE |
|---|---|---|
| 30 | $92 | $83 |
| 40 | $133 | $119 |
| 50 | $198 | $173 |
How much does a $100,000 universal life insurance policy cost?
The average cost of a $100,000 universal life insurance policy is about $54 per month, or $648 per year, based on our analysis of universal life insurance quotes for a 30-year-old nonsmoker in good health.
Similar to whole life insurance, universal life insurance is also a form of permanent life insurance and can accumulate cash value. However, unlike whole life, universal life insurance allows you to adjust your premiums and death benefit, within certain limits.
Average monthly cost for a $100,000 universal life insurance policy
Here’s how much a $100,000 universal life insurance policy costs per month, on average, by age and gender.
| AGE | MALE | FEMALE |
|---|---|---|
| 30 | $58 | $50 |
| 40 | $86 | $76 |
| 50 | $117 | $110 |
When should you buy a $100,000 life insurance policy?
The best time to buy any life insurance policy is generally when you’re young and healthy. Someone who’s young and in good health represents a much lower risk to an insurance company, compared to someone who’s older and may have a few health issues.
For instance, a male who’s interested in purchasing a $100,000 policy with a 10-year term will pay more than double for it at age 50 than they would at age 30. While females typically benefit from paying lower premiums, waiting to purchase a life insurance policy can increase your risk, and accordingly, your costs.
You might assume that you need to wait until you’re married, have kids or own a home to need life insurance, but that’s not necessarily correct. A single person in their 20s, for example, could benefit from having a $100,000 life insurance policy if they want to be able to leave money behind for their loved ones to pay off debts or cover funeral expenses.
Life insurance can be used to meet different needs and at the very least, it can provide some reassurance for you and your loved ones. Looking at the specifics of your financial situation can give you an idea of whether the time is right to buy a $100,000 life insurance policy.
Is a $100,000 life insurance policy the best for you?
One of the challenges of buying life insurance is figuring out how much coverage is enough to meet your needs.
A $100,000 policy could be sufficient if:
- You have other life insurance through your employer to supplement your coverage.
- Your loved ones’ financial needs wouldn’t exceed $100,000 if something were to happen to you.
- You have other assets your loved ones could rely on after your death.
- You have a specific need that a $100,000 policy can fill.
Here are a few examples of when $100,000 in life insurance might be the best option.
Example #1: You’re 30 years old and single with no kids. You have $100,000 in private student loans that your parents co-signed. You might choose to get a $100,000 life insurance policy with a 10- or 20-year term and name your parents as your beneficiaries. If you were to pass away, they could use the policy’s death benefit to pay off the loans.
Example #2: You’re 40 years old and married, with two kids who will be heading to college in a few years. You and your spouse have made regular contributions to college savings accounts on their behalf, but you’re worried about coming up short. You decide to get a $100,000 life insurance policy so that there’s extra money to cover college expenses just in case.
Example #3: You’re 50 years old and getting ready for the final countdown to retirement. You still have $100,000 left to pay on your mortgage. To avoid the risk of leaving your spouse with the debt should you pass away before you retire, you buy a $100,000 life insurance policy and name your spouse as the beneficiary.
Methodology
We analyzed term life insurance rates provided by AccuQuote, a national online life insurance agency that works only with top carriers. We analyzed whole and universal life insurance rates provided by LifeQuotes, a national life insurance comparison site that works with more than 50 leading life insurance companies.
Term, whole and universal life insurance rates are for nonsmokers of average height and weight who are in excellent health. Your rates will depend on your age, gender, health and other factors.
Frequently asked questions (FAQs)
Here are average monthly premiums for a $100,000 life insurance policy, based on the type of life insurance policy:
- 10-year term life: $7 per month.
- Whole life: $88 a month.
- Universal life: $54 per month.
These average rates are based on a healthy, 30-year-old nonsmoker. How much you’ll pay for a $100,000 policy will depend on the type of policy, your age and your gender.
Term life insurance tends to have the lowest premiums compared to whole life insurance or universal life options.
Whether someone is male or female can have an impact on what they pay for life insurance coverage. Statistically, someone who is assigned female at birth is more likely to live longer than someone who is assigned male. That lowers their risk, which can result in lower premiums for life insurance.
Here’s a quick comparison of the cost difference when the insured is male versus female, assuming a $100,000 life insurance policy with a 20-year term.
- Age 30 – Males pay 13% more, or $108 per year in premiums.
- Age 40 – Males pay 22% more, or $132 per year in premiums.
- Age 50 – Males pay 23.5% more, or $252 per year in premiums.
It’s important to note that most life insurance companies use the sex or gender you were assigned at birth.
The cash value component of a permanent life insurance policy represents the portion of your premiums that accrues tax-deferred interest. You can use the cash value as a type of investment savings account to withdraw or borrow money from while you’re still alive.
The amount of cash value you’re able to accumulate, and how quickly, will depend on the type of cash value insurance you choose.
Note that term life insurance policies do not have a cash value component.
