Editorial Note: We earn a commission from partner links on Forbes Advisor. Commissions do not affect our editors’ opinions or evaluations.
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 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. Your family’s size, personal needs and debts will dictate how much life insurance is required to keep your family financially stable.
We analyzed term life insurance quotes for $100,000 life insurance policies to determine the average cost. The annual cost of a 10-year term $100,000 life insurance policy is $96 for a healthy, 30-year-old nonsmoker and $108 for a 20-year term for that same person.
Here are other average costs for $100,000 in life insurance.
$100,000 Term Life Insurance Costs by Age and Gender
Average annual costs for 10-year, $100,000 life insurance policy
Average annual costs for 15-year, $100,000 life insurance policy
Average annual costs for 20-year, $100,000 life insurance policy
Average annual costs for 30-year, $100,000 life insurance policy
Buying Younger Means Paying Less for a $100,000 Life Insurance Policy
Age is a key rating factor for life insurance companies. The longer you delay buying a policy, the higher the rates will go. This is because your life expectancy is declining as you age, which means the risk for the insurance company increases. To lock in cheaper rates, buy coverage when you’re younger if possible.
Our analysis shows the savings you can enjoy if you buy a $100,000 life insurance policy in your 30s. If you put off buying a 20-year term policy until your 50s or 60s, you’ll end up paying much more:
- Waiting from age 30 to 40 to buy a 20-year term $100,000 policy causes the cost to jump up 44% for males and 22% for females.
- If you hold out until age 50 for that same policy, the price increases 178% for males and 111% for females compared to the rates for a 30-year old.
- Waiting until age 60 results in a rate hike of 578% for males and 367% for females compared to if you bought the policy when you were 30.
- At age 60, the annual rate for $100,000 in life insurance is $732 for a male and $504 for a female, compared to a locked-in rate of $108 for both genders at age 30.
How Gender Affects the Cost of $100,000 Life Insurance
Gender is another main factor used to calculate life insurance costs. Females generally live longer, so they typically get better rates.
Our analysis shows that males don’t start paying more for $100,000 life insurance policies until they are 35 or 40, depending on the term length. The quotes for males increase more than females as they get older. Quotes are also higher for males for longer lengths of term life insurance, compared to females,
For example, looking at a 20-year term life policy, here is how gender affects rates:
- At age 30, the rates are on par at an average of $108 for both genders.
- At age 40, males pay 18% more than females, which translates to $24 more annually.
- At age 50, males pay 32% more than females, which is $72 annually.
- At age 60, males pay 45% more than females, which is $228 annually.
$100,000 Life Insurance Costs by Term Length
To have a life insurance policy that lasts longer, you’ll have to pay more. Deciding on the right policy length for your needs will depend on the items 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 kids to put through college or large debts to pay off. Plus, if you’re buying life insurance when you’re older, it can be expensive to get a policy with a longer term.
Whatever your age, determine what you want to get out of a $100,000 life insurance policy and check the various term lengths to see which works best for your needs and finances. Don’t assume a longer term is too expensive without getting life insurance quotes first.
Average annual costs for $100,000 life insurance by term length
Our analysis found that:
- For 30-year-olds seeking a $100,000 term life insurance policy, there’s no difference in average rates between males and females, no matter the length of the policy.
- It costs 6% more for a 15-year term than a 10-year policy, which comes to paying only $6 more a year.
- Costs go up 13%, or $13 annually, for the 20-year term compared to the 10-year term. It’s vital to compare costs of varying terms because, as you see, you can possibly double your term and spend very little extra.
- Moving up to a 30-year term costs 50% more than a 10-year policy, but that only comes out to an extra $48 a year and it triples your policy length.
$100,000 Term Life Insurance Rates by Policy Amount
We analyzed rates for $100,000 life insurance compared to $250,000 and up to $1 million.
Evaluate the costs for a variety of death benefit amounts to see what you can afford. You may assume you can afford only $100,000 in life insurance policy will be enough, but find that you have the budget to bump up the payout and leave your loved ones in a better financial position.
Average annual costs for a variety of life insurance amounts
Our analysis of rates found that:
- Upgrading from a $100,000 to a $250,000 life insurance policy more than doubles your coverage, but rates go up only 78% for males and 56% for females.
- Moving from $100,000 life insurance to a $500,000 policy costs males 178% more and females 133% more. That works out to $192 for males and $144 for females more annually while giving you five times the policy payout.
- Moving from $100,000 life insurance to a $750,000 policy costs 267% more for males and 167% for females.
- Moving from $100,000 life insurance to $1 million costs 344% more for males and 222% for females.
How to Find the Best $100,000 Life Insurance
The first step to buying any term life insurance policy is zeroing in 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 outstanding obligations and your family’s financial needs. Evaluate your debt, whether you want to leave money for income replacement, and whether you want to cover college costs for your kids.
After you have settled on the death benefit amount, it’s time to determine the length that works best. Do you want to make sure the policy will last through your working years, for income replacement? Should the policy last for the length of your mortgage?
Once you have the policy term and amount figured out, it’s time to compare life insurance quotes.
When shopping for a $100,000 life insurance, check if a medical exam is needed. Life insurance companies often want you to take a medical exam to evaluate your health.
You may find no-exam life insurance policies available. But keep in mind that if you aren’t in excellent or at least very good health, you may not be eligible for these no-exam policies.
When you’re ready get $100,000 life insurance quotes, it’s helpful to have handy the following information:
- Height and weight
- Personal medical information, knowledge of past and current health
- Family medical history for immediate family, meaning parents and siblings
- Medications, both current and previous
- Lifestyle information, such as smoking and drinking
- Plans to travel outside the United States
- Dangerous hobbies, such as piloting planes and scuba diving
It’s vital to be truthful on the application. Forbes Advisor’s ratings of the best term life insurance companies can help guide you to top picks.
Methodology
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.
Clinton Mora is a reporter for Trending Insurance News. He has previously worked for the Forbes. As a contributor to Trending Insurance News, Clinton covers emerging a wide range of property and casualty insurance related stories.