Comparing the Cost of Permanent & Term Life Insurance

This section provides annual insurance premiums for men and women at different ages. These are averages based on premium information provided to LIFE by several major insurance carriers. All companies were asked to provide their “preferred” rates for healthy, non-smokers.

For this comparison, we chose to show premiums for 20-year Term Life Insurance, the most common type of term insurance, and Whole Life Insurance, the most common type of permanent insurance.

Whole Life policies provide a guaranteed amount of death benefit (in this case $250,000) and a guaranteed rate of return on your cash values.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 25 by a Healthy Non-smoking Male

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 25 by a Healthy Non-smoking Male

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 35 by a Healthy Non-smoking Male

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 35 by a Healthy Non-smoking Male

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 45 by a Healthy Non-smoking Male

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 45 by a Healthy Non-smoking Male

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 55 by a Healthy Non-smoking Male

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 55 by a Healthy Non-smoking Male

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 25 by a Healthy Non-smoking Female

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 25 by a Healthy Non-smoking Female

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 35 by a Healthy Non-smoking Female

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 35 by a Healthy Non-smoking Female

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 45 by a Healthy Non-smoking Female

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 45 by a Healthy Non-smoking Female

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 55 by a Healthy Non-smoking Female

Guaranteed Cash Values for a $250,000 Life Policy Purchased At Age 55 by a Healthy Non-smoking Female

Note: This graph only shows guaranteed values, and doesn’t include dividends. One of the most valuable benefits of a participating whole life insurance policy is the opportunity to earn dividends. Although dividends are not guaranteed, they are an important part of a Whole Life policy. While your policy’s guarantees provide you with a minimum death benefit and cash value, dividends give you the opportunity to receive an enhanced death benefit and cash value growth.

Dividends are a way for the company to share part of its favorable results with policyholders. When you purchase a participating policy, it is expected that you will receive dividends after the second policy year—but they are not guaranteed. Dividends, if left in the policy, can provide an offset (and more) to the eroding effects of inflation on your coverage amount.