Life insurance premiums are determined by a handful of factors that actuaries weigh to estimate your risk of dying during the policy period.
Age is the single biggest driver. The older you are when you buy, the higher your premium — mortality risk rises sharply with age. Buying at 30 vs. 40 can mean paying half as much for the same coverage. Locking in a rate young saves tens of thousands over a policy lifetime.
Health class reflects medical underwriting. Insurers assign you a rating tier — Preferred Plus, Preferred, Standard Plus, Standard, or Tobacco — based on your medical history, current health metrics, family history, and lifestyle. The difference between Preferred Plus and Standard can be 30–40% in premiums. Tobacco users pay 60% or more above Standard rates.
Coverage amount and term length multiply the base rate. More coverage = proportionally more premium. A 30-year term costs about 50% more per month than a 20-year term, because the insurer covers you for an additional decade. Shorter terms are cheaper but may leave you uncovered when you still have dependents.
Term life vs. whole life. Term life pays a death benefit if you die within the term period — nothing more. Whole life combines a death benefit with a cash-value savings component, making it 8–12× more expensive. For most people focused on income replacement, term life is the cost-efficient choice. The "buy term and invest the difference" strategy consistently outperforms whole life as a savings vehicle.
These estimates are ballpark figures. Real premiums depend on your specific insurer, state regulations, medical exam results, prescription history, driving record, and dozens of other factors. Always get multiple personalized quotes from licensed insurance agents or brokers.