A term life insurance policy provides coverage for a specific period rather than a lifetime. You can choose the duration of your coverage, typically between 10 and 30 years, based on factors such as your financial obligations. If you’re seeking a budget-friendly life insurance option, term life insurance is worth considering. While the cost of term life insurance varies, you might be wondering, how much does a 15-year term life insurance policy cost?
There are several forms of life insurance policies. These forms include 10-year, 15-year, and 20-year term life insurance policies. It is important to financially prepare for your death by purchasing a life insurance policy to offer financial support to your loved one after you are gone. Having enough life insurance makes sure that your beneficiaries have enough funds for your funeral after you are no more. However, as you read through, this write-up contains insights on how much a 15-year term life insurance costs.
What is a 15-Year Term Life Insurance Policy?
A 15-year term life insurance policy is a type of time life insurance that requires policyholders to pay premiums monthly or yearly to keep their insurance policy on the run.
If during this period the policyholder dies, a tax-free death benefit will be received by the beneficiaries to cover funeral costs, charity goals, long-term medical care, mortgages, dependent expenses, or daily bills.
How Much Does a 15-Year Term Life Insurance Cost
The cost of a 15-year term life insurance policy varies depending on several factors. On average, a policy with a $250,000 coverage amount costs between $17.85 and $44.37 per month, depending on the buyer’s age.
However, lifestyle and health conditions also play a significant role. For example, smokers typically pay between $76.22 and $259.18 per month, while individuals with poor health may see monthly premiums ranging from $35.40 to $106.92. The tables below break down the cost of a 15-year term life insurance policy based on the buyer’s age and health status.
15-Year Term Life Insurance Cost According to Coverage and Age
| Age of Policyholder | $250,000 | $500,000 | $1,000,000 |
| 30-year-old | $17.85 | $22.31 | $38.79 |
| 40-year-old | $22.65 | $30.01 | $54.70 |
| 50-year-old | $44/37 | $66.89 | $120.41 |
15-Year Term Life Insurance Cost for Buyer With Poor Health
| Age of Policyholder | Poor Health | Smoker | High BMI |
| 30-year-old | $35.40 | $76.22 | $32.53 |
| 40-year-old | $49.64 | $114.13 | $44.61 |
| 50-year-old | $106.92 | $259.18 | $93.61 |
Smokers and people with poor health are likely to have severe medical conditions, which makes them quite risky to insure. For this reason, they tend to get higher insurance costs than other individuals.
Factors That Affect Your 15-Year Term Life Insurance Cost?
Some factors affect your term life insurance policy rates. These factors are considered by most life insurance companies when evaluating how much a 15-year term life insurance policy would cost. However, these factors include
Age:
Young individuals generally get more affordable term life insurance policies than older individuals because they are considered less risky to insure.
Health Conditions:
Most insurance companies look into medical records and family medical history to determine if you will likely develop a health condition that may take your life.
Gender:
Generally, women are considered to have a longer life span than men. For this reason, they are considered less risky, and they pay less for term life insurance policies than men.
Lifestyle:
Factors such as a criminal record and smoking habits can influence the cost of your term life insurance. Insurance providers use these and other personal details to determine the pricing of a 15-year term life insurance policy.
Companies That Offer the Lowest 15-Year Term Life Insurance Rates?
Although most life insurance companies provide term life insurance, some stand out for offering the most affordable rates on 15-year term policies. These include:
- MassMutual.
- Mutual of Omaha.
- Progressive.
- Transamerica.
- Nationwide.
- AAA.
- Prudential.
These lenders offer the lowest 15-year term life insurance rates for different individuals, such as smokers, people with poor health conditions, and seniors. However, the most affordable term life insurance provider for you will ultimately depend on your budget, personal needs, and which policy aligns best with your financial situation.
Can a 15-Year Term Life Insurance Policy Be Extended?
You can choose to extend your 15-year term life insurance policy once the term ends. Alternatively, you may opt to convert it to a whole life insurance policy or simply let the coverage expire. To initiate an extension or conversion, it’s best to reach out to your insurance provider or agent for guidance through the process.