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A $100,000 life insurance policy may be the right coverage for your situation, especially if you’re on a tight budget but want the safety net that life insurance provides for your family or loved ones.
When deciding if a $100,000 life insurance policy is right for you, consider what you want the potential payout to cover. The size of your family, your personal needs and your debts will dictate the amount of life insurance needed to provide financial stability for your family.
How much does a $100,000 term life insurance policy cost?
We analyzed term life insurance quotes for $100,000 life insurance policies to determine the average cost. The annual cost of a $100,000 10-year life insurance policy is $96 for a healthy 30-year-old non-smoker and $108 for a 20-year term for that same person.
Here are other average costs for $100,000 in life insurance.
Costs of $100,000 term life insurance by age and gender
Average annual costs of a 10-year life insurance policy of $100,000
Average annual costs of a $100,000 life insurance policy over 15 years
Average annual costs of a $100,000 life insurance policy over 20 years
Average annual costs of a $100,000 life insurance policy over 30 years
Buying younger means paying less for a $100,000 life insurance policy
Age is a key underwriting factor for life insurance companies. The longer you delay purchasing a policy, the higher the rates will increase. This is because your life expectancy decreases as you get older, which means the risk to the insurance company increases. For cheaper rates, buy coverage when you’re younger if possible.
Our analysis shows how much you can save if you buy a $100,000 life insurance policy in your 30s. If you put off buying a 20-year term insurance policy until you’re 50 or 60, you’ll end up paying a lot more:
- Waiting 30 to 40 years to purchase a $100,000 20-year insurance policy increases the cost by 44% for men and 22% for women.
- If you hold out to age 50 for that same policy, the price goes up 178% for men and 111% for women over the rates for a 30-year-old man.
- Waiting until age 60 results in a rate increase of 578% for men and 367% for women compared to if you had purchased the policy at age 30.
- At age 60, the annual rate for $100,000 of life insurance is $732 for a man and $504 for a woman, compared to a locked-in rate of $108 for both sexes at age 30.
How Gender Affects the Cost of $100,000 Life Insurance
Gender is another main factor used to calculate life insurance costs. Women generally live longer, so they usually get better rates.
Our analysis shows that men don’t start paying more for $100,000 life insurance policies until age 35 or 40, depending on the length of the term. Quotes for men increase more than women as they age. Quotes are also higher for men for longer durations of term life insurance, compared to women,
For example, looking at a 20-year term life insurance policy, here’s how gender affects rates:
- At age 30, the rates are tied with an average of $108 for both sexes.
- At age 40, men pay 18% more than women, which translates to $24 more per year.
- At age 50, men pay 32% more than women, or $72 per year.
- At age 60, men pay 45% more than women, or $228 per year.
Life insurance costs $100,000 per term
To have a life insurance policy that lasts longer, you will have to pay more. Deciding on the right policy term for your needs will depend on what 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 children to attend college or large debts to pay off. Also, if you buy life insurance when you’re older, it can be expensive to get a longer-term policy.
Regardless of your age, figure out what you want out of a $100,000 life insurance policy and check out the different terms to see which best suits your needs and finances. Don’t assume a long term is too expensive without getting life insurance quotes first.
Average annual costs of $100,000 life insurance by length of term
Our analysis revealed that:
- For 30-somethings looking for a $100,000 term life insurance policy, there is no difference in the average rate between men and women, regardless of the length of the policy.
- It costs 6% more for a 15-year term than a 10-year policy, which means paying only $6 more per year.
- Costs increase by 13%, or $13 per year, for the 20-year term compared to the 10-year term. It is essential to compare the costs of different durations because, as you see, you can possibly double your duration and spend very little more.
- Upgrading to a 30-year term costs 50% more than a 10-year policy, but that’s only $48 more per year and triples your policy term.
$100,000 term life insurance rates per policy amount
We analyzed the rates for life insurance of $100,000 compared to $250,000 and up to $1 million.
Evaluate the costs of various death benefit amounts to see what you can afford. You may assume that you can only afford $100,000 in life insurance policy will suffice, but find that you have the budget to increase the payment and leave your loved ones in a better financial situation.
Average annual costs for various amounts of life insurance
Our rate analysis revealed that:
- Going from a $100,000 life insurance policy to $250,000 more than doubles your coverage, but the rates only go up 78% for men and 56% for women.
- Going from a $100,000 life insurance policy to a $500,000 policy costs 178% more for men and 133% more for women. That works out to $192 for men and an extra $144 for women per year, while giving you five times the policy payout.
- Going from a $100,000 life insurance policy to a $750,000 policy costs 267% more for men and 167% for women.
- Going from $100,000 life insurance to $1 million costs 344% more for men and 222% for women.
How to find the best $100,000 life insurance
The first step in buying a term life insurance policy is to focus 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 ongoing obligations and your family’s financial needs. Evaluate your debt, if you want to leave money to replace income and if you want to cover your children’s school fees.
How much life insurance do you need?
Answer simple questions in our 3-step process
After you’ve decided on the death benefit amount, it’s time to decide what term is right for you. Do you want to make sure the policy will last through your working years, for income replacement? Should the policy last for the life of your mortgage?
Once you’ve determined the term and amount of the policy, it’s time to compare life insurance quotes.
When shopping for $100,000 life insurance, check to see if a medical exam is required. Life insurance companies often require you to undergo a medical examination to assess your condition.
You can find no exam life insurance policies available. But keep in mind that if you are not in excellent or at least very good health, you may not be eligible for these no-exam policies.
When you’re ready to get $100,000 life insurance quotes, it helps to have the following information handy:
- Height and width
- Personal medical information, past and current health knowledge
- Family medical history for immediate family i.e. parents and siblings
- Medications, current and past
- Lifestyle information, such as smoking and drinking
- Plans to travel outside of the United States
- Dangerous hobbies, such as piloting airplanes and scuba diving
It is essential to be honest about the application. Forbes Advisor ratings of the best term life insurance companies can help you choose the best choices.
Term life insurance quotes are for healthy non-smokers of average height and weight. We averaged the four cheapest quotes we found online. Your own quotes will differ depending on your age, health and other factors.