The Surprising Affordability of Term Life Insurance
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Overestimating the expense of term life insurance could potentially cost your family in the future.

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Would your family be financially secure if something were to happen to you? Research shows that four in 10 American families without comprehensive life insurance coverage would have immediate trouble paying bills. (Source: Life Happens 2019 Insurance Barometer Study, 04/2019)

Many people prioritize other financial needs and somehow life insurance doesn’t make it into their spending plan. In fact, the 2019 Insurance Barometer Study showed that when asked how much a $250,000, 20-year level term life insurance policy would be for a healthy 30-year-old each month, respondents’ median estimate was $50. That’s more than three times the actual monthly premium.

Average costs compared to typical expenses

To better understand what term life might actually cost you, look at the average costs for different age ranges, compared to what is typically spent in other areas.

Pacific Life Insurance Company's PL Promise Term 20 (Policy Form # P16LYT, S16LYT 20 or ICC16 P16LYT, ICC16 S16LYT 20, based on state of policy issue.)

Assumptions: Male, ages 25, 35, and 45, Preferred Best Non-Tobacco, monthly premiums, $250,000 death benefit

Source for typical investments figures: Bureau of Labor Statistics;, 09/2019

The truth about affordable term life

Term life insurance policies typically come in 10-, 20-, and 30-year terms. While premium costs vary based on age, gender, hobbies, health, and the amount of coverage you need, the younger and healthier you are, the lower your cost typically will be. That’s why waiting to purchase coverage can cost you more in the long run. Remember, for most policies the rates lock in once you purchase it, so the rate you start with is the one you have the remainder of the term.

In one estimate by Pacific Life analysts for a healthy nonsmoking male, the realities of aging mean that the cost of a 20-year Promise Term Life Policy with $250,000 coverage goes from an initial annual premium cost of $153 at age 25 to $325 at age 45. That’s $3,060 for the 25-year-old over the life of the term, and $6,500 for the 45-year-old—all the more reason to lock in coverage cost when you’re young. At either age, however, the premium costs are affordable. Many insurance companies offer affordable premium options for people with impairments, such as high cholesterol or depression, so don’t let a health issue prevent you from looking into coverage. Instead, be open about your health with your financial professional, who can help you find a term product that works within your budget.

Protection for your family, however, is priceless. Your financial professional can help you weigh your options and find the best product for your needs.


Life insurance is subject to underwriting and approval of the application and will incur monthly policy charges.

In order to sell life insurance, a financial professional must be a properly licensed and appointed life insurance producer.

Guarantees are backed by the financial strength and claims-paying ability of the issuing insurance company and do not protect the value of the variable investment options, which are subject to market risk.

The above is provided for informational purposes only and should not be construed as investment, tax, or legal advice. Information is based on current laws, which are subject to change at any time. You should consult with their accounting or tax professionals for guidance regarding your specific financial situation.

Pacific Life refers to Pacific Life Insurance Company and its affiliates, including Pacific Life & Annuity Company. Insurance products are issued by Pacific Life Insurance Company in all states except New York and in New York by Pacific Life & Annuity Company. Product availability and features may vary by state. Each insurance company is solely responsible for the financial obligations accruing under the products it issues.

Pacific Life’s Home Office is located in Newport Beach, CA.


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