Term life insurance is a type of life insurance that is bought for a limited time period or “term”. Term life insurance is typically purchased for 5, 10, 15, 20 or 30-year periods, although other time increments may be available. Because a term life insurance policy is only effective for the amount of time for which it was bought, life insurance companies regularly offer lower term life insurance premium compared to other life insurance options. And, the premiums are almost always fixed. Premiums might go up or down throughout the term of the life insurance policy, but they will never exceed the limits agreed upon when the policy was first taken out.

Many people pick to purchase term life insurance during specific times in their lives when additional life insurance is necessary. For example, when raising young children, term life insurance can provide extra financial security in the event that a parent passes away. Some people choose to purchase term life insurance to correspond with major financial obligations, such as a mortgage or other loan. If both spouses have a large mortgage or loan, and the primary breadwinner dies before the loan is paid off, a term life insurance premium can help ensure that the surviving spouse isn’t burdened by debt.

Term life insurance cost differ from company to company, from amount to amount and from person to person. There are various different factors used to calculate term life insurance premiums. If you want to find the most affordable coverage, it pays to compare the rates offered by numerous companies and different amounts of insurance. The easiest way to do this is to use an online source that offers rates from several companies at one time.

Your life insurance agent almost certainly has a chart somewhere that determines your term life insurance premium. In their wisdom, life insurance bigwigs systematically determine what the term life insurance premium need to be in order for the insurance company to turn a profit, and still be able to pay out insurance policies when people die. This is all based on statistical risk, and there are a few key factors that determine your risk and thus what you’ll pay for term life insurance:

1. Age – Most insurance companies have different standard rates based on your’ age. The amounts usually increase every five years — e.g., a different rate for age 30, 35, 40, 45, 50, and so on.
2. Term length – Basically another age-related factor, the length of the life insurance term also has an impact on the cost of your insurance premium. A 10-year policy for a 30-year-old will cost far less than a 30-year policy for a 30-year-old, because in the first scenario the insured person will be 40 when the policy expires, whereas in the second scenario the insured person will carry the life insurance premium until age 60.
3. Health – tobacco use will almost always impact your term life insurance quotes. Depending on your insurance company, certain health conditions may also impact your premium.
4. Gender – most life insurance companies charge higher life insurance for males than for females.

The fourth factor in the term life insurance cost is, as you might assume, the dollar amount of coverage. Life insurance is often available in amounts of $250,000; $500,000; or $1,000,000.

The only way to know precisely what term life insurance will cost you is to get a quote. For fast quotes from a wide range of companies, Enter your zip code in the search box above. To give you a rough idea of the cost, here are some sample insurance premiums — please note these are rough averages only, and your quote may differ: