Life insurance rates: Average costs by age and policy

Life insurance rates vary widely depending on age, gender, health, and policy type. On average, a 30-year-old woman paid $23.10 per month for a $500,000, 20-year term life insurance policy, while a man of the same age paid $29.56 per month. Whole life coverage is significantly more expensive, with an average cost of $408 per month for a $500,000 policy for a 30-year-old woman.

Term life insurance provides coverage for a set number of years, whereas whole life is designed to remain active throughout the policyholder's life. Term policies are generally cheaper because they don't last forever, and many policyholders outlive their terms, so the insurer never pays a death benefit. Factors like age, sex, health, and lifestyle can significantly impact insurance premiums.