Average Cost of $100,000 Life Insurance Policies in November 2024

Life insurance policies come in a variety of terms and amounts. One of the most common and affordable life insurance coverage amounts that most insurers offer is $100,000. However, as with any other insurance product, some $100,000 insurance policies and providers will be more affordable or better for your needs than others.

For instance, $100,000 whole life insurance policy costs tend to be higher than $100,000 term life insurance rates. Despite having similar coverage amounts, the former offers lifelong coverage and accumulates cash value.

• Cost of $100K Life Insurance
• Cost by Term Length
• Cost by Age
• Cost for Smokers & Poor Health
• Cost of Permanent Coverage
• $100K Insurance With No Exam
• Who Should Get a $100,000 Life Insurance Policy

The cost of a life insurance policy can vary depending on several factors, such as term length, age, health history and more. MoneyGeek analyzed $100,000 life insurance policies to determine the average premium for 10- and 20-year term lengths.

The average cost for $100,000 life insurance is $11.02 monthly for a 10-year term plan and $12.59 per month for a 20-year term policy.

Term life insurance offers coverage for a set duration, usually between 10 and 30 years. Renewable life insurance policies can be extended for an additional term or until the policyholder reaches a particular age. This flexibility allows policyholders to adapt their coverage as their life circumstances change.

Transamerica's $100,000 term life insurance policies are the cheapest among the companies MoneyGeek evaluated for 10-, 15-, 20- and 30-year terms. Prudential typically has the most expensive $100,000 term life insurance rates of all insurers across the terms we assessed.

The following are the average monthly premiums for a $100,000 life insurance policy from the various insurers for the most common term lengths:

As you grow older, the risk that an insurer will be required to pay out on your insurance increases, and as a result, premiums rise. People usually buy life insurance for the first time around age 40.

The average cost of life insurance with a $100,000 coverage amount and 20-year term is $12.59 for a 30-year-old policyholder and $68.31 for a 60-year-old policyholder — a difference of $55.72. However, the monthly premiums for a $100,000 10-year life insurance policy average $11.02 for a 30-year-old policyholder and $42.15 for a 60-year-old policyholder. In other words, the longer the term, the more significant the difference in price between age groups.

The table below displays the average monthly cost of a $100,000 life insurance policy by age and term length.

Individuals with a poor health history are considered more likely to file an insurance claim, and insurers classify them as high-risk policyholders. A history of serious illnesses like heart disease or cancer will almost certainly increase your premiums. Additionally, smoking puts you at risk for various health problems and raises your rates. Even the cheapest life insurance policies for smokers can be much more expensive.

For example, smokers pay an average of $27.85 per month for a 10-year, $100,000 life insurance policy, while those in poor health pay $15.41 per month for the same level of coverage. An average healthy policyholder would pay approximately $11.02 for comparable coverage. Smokers spend nearly $37.90 per month for a 20-year policy, while those in poor health pay roughly $19.80 per month. The monthly premium for the same term is around $12.59 for a healthy policyholder.

The table below details the average monthly rates of a $100,000 life insurance policy for smokers, individuals in poor health and those with a high body mass index (BMI).

Permanent life insurance refers to policies that never expire, no matter when the insured passes. Whole and universal life are the two most common types of permanent life plans insurance companies offer. They might be up to 20 times more expensive than term life insurance.

Whole life insurance offers permanent death benefit coverage using fixed premiums for the insured's whole life. In addition, it comprises a savings component known as cash value, on which interest may accrue. You can receive this interest in the form of payouts or dividends. On the other hand, universal life insurance provides both a death benefit and investment savings by paying flexible premiums or a minimum amount to retain the policy.

Unlike a traditional life insurance policy, for which it can take weeks to get approved, instant life insurance doesn't require a medical exam, and it's fast and convenient to apply for. It is only available to people in specific age groups who meet certain health criteria. Regardless, a $100,000 instant life insurance policy costs the same as a traditional policy with the same coverage.

The primary distinction between guaranteed issue insurance and instant life insurance is that the former does not require you to undergo an exam. However, instant life insurance may require you to answer a few health-related questions. Additionally, guaranteed issue insurance can be very costly. For instant life insurance using accelerated underwriting, you may have to answer many questions, whereas with simplified issue underwriting, applicants only need to answer a few questions.

You may get an expensive quote if you apply for instant life insurance using simplified issue underwriting instead of a quote through accelerated underwriting, which costs the same as a policy with a medical exam. Instant life insurance policies are available from insurers such as Brighthouse SimplySelect, Ethos and Jenny Life.

By employing these methods, you can minimize the cost of a $100,000 life insurance policy, making it a more manageable expense.

A good rule of thumb is to get a life insurance policy with a coverage amount that's 10 to 12 times your annual income. In most cases, a $100,000 life insurance policy will suffice if:

• You want a life insurance policy to supplement your savings, retirement income or another life insurance policy.
• You're making less than $20,000 a year or can't afford more insurance coverage.
• You want your life insurance to cover only specified expenses like funeral costs or bills.

Additionally, if you're financially secure, don't have any dependents, have only a few financial liabilities or have little debt, a $100,000 life insurance policy can make sense. It can cover final expenses or leave a legacy to loved ones. Those who currently have a life insurance policy and wish to extend the amount of coverage or its term may consider using a $100,000 term policy for this purpose.

For instance, a $100,000, 10-year term life insurance policy may be enough to cover your daughter's college tuition. However, you should not anticipate that this sum will cover major costs, such as your mortgage.

Deciding the right amount of life insurance coverage involves careful consideration of your financial responsibilities and future goals. Here’s a guide to help you determine an appropriate coverage level:

1. Assess Financial Needs: Look at your debts, regular living expenses and any future obligations like college tuition or retirement savings for a spouse. This comprehensive evaluation helps you choose a coverage amount that protects your family.
2. Income Replacement: Consider how much income your dependents would need if you were no longer around. A general rule of thumb is securing coverage at least 10 times your annual income, accommodating immediate and future financial needs.
3. Account for End-of-Life Costs: Consider potential end-of-life costs such as final medical bills and funeral expenses beyond immediate expenses. Ensuring these are covered can relieve your family of financial stress during a difficult time.
4. Plan for Future Goals: Think about your family's long-term financial goals. Whether they're paying off a mortgage or funding a child's education, your life insurance should support these aims without leaving a financial burden.

By understanding the answers to some of the most common questions people have about life insurance, you can better determine if a $100,000 life insurance policy is the right choice for your needs.