Term life basics
Term Life Insurance Rates by Age: How Age Changes What You Pay
Term life insurance rates by age: state regulators say premiums are usually lower for younger buyers. How age, term length, health and tobacco play in.
Reviewed by Brian Carrozzi
Founder, RestAssured ยท Licensed life insurance agent
Updated · How we write and review
Short answer: State regulators say term life insurance costs more the older you are. The NAIC says “As you get older your term premiums will increase to keep up with the cost of insurance.” But age is only one factor: the Texas Department of Insurance says the cost “depends on your age, health, and risk factors” and that “rates vary by company.” That’s why we don’t publish prices. Ask for a quote based on your own details.
How does age affect term life insurance rates?
The Texas Department of Insurance (TDI) says the cost “depends on your age, health, and risk factors,” and that premiums are “usually lower for younger people.” The New York State Department of Financial Services (DFS) puts it the same way: “term rates rise as you grow older.” Washington’s Office of the Insurance Commissioner says term life “costs more as you get older.”
The National Association of Insurance Commissioners (NAIC) says: “As you get older your term premiums will increase to keep up with the cost of insurance.” The NAIC also asks readers to keep in mind “that the risk of death increases each year” when deciding how long they need coverage.
TDI says term premiums “will stay the same for the entire term.” If you renew, TDI says, “your new premium will be based on your age when you renew, not when you originally bought the policy.” DFS adds that “term rates rise as you grow older,” so buying later means your premium is set at an older age.
Why don’t we publish a term life rate chart?
A rate chart has to assume one age, one health profile, one coverage amount and one insurance company. TDI says “rates vary by company,” and that a company “can charge you more if you have health conditions, smoke, or have risky hobbies like skydiving or rock climbing.” Your premium also depends on “the amount of coverage and policy features you choose.”
Because those factors differ from person to person, RestAssured doesn’t publish rate charts. It’s the same reason we don’t publish prices on how much mortgage protection insurance costs.
What else changes what you pay besides age?
- Health class. The California Department of Insurance (CDI) says an applicant “whose characteristics are more favorable may be classified as a ‘Preferred Risk,’” and when “the characteristics are less favorable, the applicant may be characterized as ‘Rated’ or refused coverage altogether.” CDI’s glossary describes a policy “issued with an additional premium to cover the extra risk involved if an insured has impaired health.”
- Tobacco. Washington’s Office of the Insurance Commissioner says “your health history and life choices, such as smoking, play a key role in determining the cost of your policy.” TDI says a company can charge you more if you smoke.
- Coverage amount. TDI lists “the amount of coverage” as a pricing factor.
- Sex. Washington’s insurance commissioner says “some companies, however, may use the sex you were assigned at birth rather than the gender you identify with to set your policy’s premium.”
- Term length and features. TDI lists the “policy features you choose” as a pricing factor. Term length is covered below.
How does term length interact with age?
DFS says term policies “are sold with various premium guarantees,” that “premiums are locked in for the specified period of time under the policy terms,” and that “the longer the guarantee, the higher the initial premium.”
The trade-off is what happens later. TDI says that “to help avoid higher premiums later, consider buying a policy with a longer term,” because a renewal premium is based on your age when you renew.
Age also limits how long a term can run. A 30-year term bought at 35 ends at 65. The same term bought at 60 would run to 90. TDI says “most companies offer term life insurance only up to a certain age, usually 70 or 80.” Ask the agent which term lengths are available at your age.
Level term vs. renewable term: does the premium go up every year?
It depends on the design.
- Level term. DFS says “under a level term policy the face amount of the policy remains the same for the entire period” and “the premium stays the same each year.”
- Renewable term. TDI says a term “can be for one year, or anywhere from five to 30 years or longer,” and that renewability “lets you extend your policy for additional terms, regardless of your health and without having to take a medical exam.” DFS says “with each new term the premium is increased.”
TDI explains the reason for a renewal increase: “your new premium will be based on your age when you renew, not when you originally bought the policy.” CDI also says “today’s term policies usually have two sets of premiums: guaranteed maximum premiums and current premiums.” Current premiums “can be changed by the insurance company,” but CDI says the company “cannot increase the current premium above the guaranteed maximum premiums shown in the policy.”
Which age rules should you know before you buy?
TDI says “rates vary by company” and that “most companies offer term life insurance only up to a certain age.” These are the age-related points state regulators and the NAIC make:
| Age rule | What the regulator says | Source |
|---|---|---|
| Younger buyers | Premiums are “usually lower for younger people.” | TDI |
| Rising rates | “Term rates rise as you grow older.” | NY DFS |
| Renewal | A renewal premium “will be based on your age when you renew, not when you originally bought the policy.” | TDI |
| Renewal age limit | “Ask if you lose the right to renew at a certain age.” | NAIC |
| Conversion | Companies usually allow conversion “only for a time, typically until you turn 65.” | TDI |
| Conversion premium | The rate on conversion “is usually based on your ‘current attained age,’” your age on the conversion date. | NY DFS |
| Maximum age | Most companies offer term “only up to a certain age, usually 70 or 80.” | TDI |
If you’re over 60 and weighing your choices, see term vs. whole life insurance for seniors.
At what age does term life insurance end?
A term policy ends when the term you chose runs out. TDI says “the policy ends at the end of the term, unless you pay to extend it.” Buy a 20-year term at 45, and it ends at 65.
The NAIC says term policies “may include a provision that allows coverage to continue (renew) at the end of the term,” and suggests you “ask if you lose the right to renew at a certain age.” If a policy is non-renewable, the NAIC says “you will need to apply for coverage at the end of the term.”
DFS says term insurance can also run “to a specified age such as 80 or in some cases up to the oldest age in the life insurance mortality tables.” Ask the agent whether a policy that runs to the age you want, such as 90, is available to you. For the basics of how term works, read what term life insurance is.
Checklist: how to compare term life quotes
TDI’s advice: “Get quotes from several companies” and compare “apples to apples.” TDI says to “be sure the policies you compare offer similar coverage.” Use this checklist so you’re comparing the same thing:
- Same death benefit. Match the coverage amount on every quote.
- Same term length. Compare a 20-year quote with other 20-year quotes.
- Same health class assumption. Ask which risk class the quote assumes, and whether it could change after underwriting.
- Tobacco status stated correctly. TDI says a company can charge more if you smoke, so check that each quote uses your actual tobacco status.
- Level premium confirmed. Ask whether the premium is guaranteed level for the whole term.
- Renewal terms. Ask what renewal would cost and the oldest age you can renew. The NAIC says to “ask what the premiums will be before you renew.”
- Conversion deadline. Ask whether the policy is convertible and until what age. TDI says conversion is typically allowed “until you turn 65.”
- Features. Note any riders or features included, since TDI lists “policy features you choose” as a pricing factor.
- Licensed company and agent. TDI says to “make sure the agent and company are licensed to sell insurance.”
- Budget. The NAIC says to “decide how much coverage you need, for how long and what you can afford to pay.”
TDI also warns: “Don’t choose a policy on price alone.”
How do you get an accurate term life quote?
A quote depends on the factors TDI lists: your “age, health, and risk factors,” plus “the amount of coverage and policy features you choose.” Insurance companies use your answers in underwriting, which CDI describes as “the process of evaluating applicants for insurance and classifying them fairly, so the appropriate premium rate may be charged.”
When you talk with a licensed agent, ask them to explain the renewal and conversion terms of each quote, and check their license as TDI recommends. Here’s how calling RestAssured works.
RestAssured is not an insurance company or an insurance agency and isn’t affiliated with any government agency. RestAssured connects callers with independently licensed insurance agents.
Frequently asked questions
Why won't anyone show me a term life insurance rates by age chart?
TDI says the cost “depends on your age, health, and risk factors,” that “rates vary by company,” and that your premium also depends on “the amount of coverage and policy features you choose.” A chart can’t account for all of that, so RestAssured doesn’t publish one. Ask a licensed agent for a quote based on your own details.
Does term life insurance go up every year?
New York’s DFS says that under a level term policy “the premium stays the same each year.” TDI says premiums “go up if you renew at the end of the term,” and DFS says that on renewable term “with each new term the premium is increased.” Ask how often your policy renews and what each renewal would cost.
At what age does term life insurance end?
TDI says “the policy ends at the end of the term, unless you pay to extend it.” TDI also says most companies offer term life only up to a certain age, “usually 70 or 80,” and the NAIC suggests you “ask if you lose the right to renew at a certain age.”
Can you get term life insurance to age 90?
New York’s DFS says term insurance provides protection for a specified period of time “or to a specified age such as 80 or in some cases up to the oldest age in the life insurance mortality tables.” Ask a licensed agent whether a policy that runs to the age you want is available to you.
Is a 30-year term more expensive than a 20-year term?
New York’s DFS says “the longer the guarantee, the higher the initial premium.” TDI says that “to help avoid higher premiums later, consider buying a policy with a longer term.” Compare quotes for both lengths with the same coverage amount.
Sources
- Life insurance guide, Texas Department of Insurance
- Types of life insurance policies, New York State Department of Financial Services
- Life insurance, NAIC consumer page
- Life insurance guide, California Department of Insurance
- Learn how life insurance works, Washington State Office of the Insurance Commissioner
This article is for general education. Policy features, prices and eligibility vary by insurance company and state; your agent will explain the specific terms of any policy before you apply.