In this article, you’ll see how much a $100,000 whole life insurance policy costs.
You’ll also clearly understand how whole life works, the various ways to qualify, and which factors influence the price.
Topics Covered in this article
- How does whole life work?
- $100k sample rates
- What factors influence the cost
- Underwriting options (ways to apply)
- Limited pay options
- How Choice Mutual can help
How Does Whole Life Insurance Work?
Whole life insurance is a type of permanent coverage that lasts forever.
No matter your age, the policy will remain in force indefinitely as long as you reliably make all your payments.
Whole life comes with iron-clad guarantees.
The policy premiums cannot increase, and the coverage cannot decrease.
Tip:
Some life insurance providers will require an exam to buy this much coverage, but many won’t.
There’s also a cash value component that accrues over time. You can withdraw the cash value if you please.
As with any life insurance, the policy will ultimately pay out a tax-free check for $100,000 (or however much coverage you buy) to your loved ones.
There’s never any tax due on a life insurance payout, nor are the restrictions on how the money is spent.
With $100K in coverage, you’ll have more than enough to cover the cost of a funeral.
How Much Does A $100,000 Whole Life Insurance Policy Cost?
A $100,000 whole life policy will probably cost between $100-$1000 monthly depending on various factors such as your age.
Life insurance pricing is based on your actual age, gender, lifestyle, health, tobacco usage, and coverage amount.
Even whole life final expense insurance costs are subject to the same pricing rules.
Below is a whole life insurance rates chart that depicts sample rates for a $100K whole life policy.
| Age | Female Non Tobacco | Male Non Tobacco | Female Tobacco | Male Tobacco |
|---|---|---|---|---|
| 30-39 | $66 - $93 | $77 - $108 | $93 - $133 | $105 - $151 |
| 40-49 | $97 - $146 | $113 - $171 | $139 - $207 | $158 - $238 |
| 50-59 | $158 - $224 | $179 - $263 | $216 - $309 | $248 - $362 |
| 60-69 | $231 - $351 | $268 - $408 | $319 - $488 | $371 - $563 |
| 70-79 | $372 - $609 | $432 - $942 | $515 - $842 | $591 - $942 |
| 80-85 | $638 - $1188 | $743 - $1334 | $882 - $1313 | $986 - $1485 |
Factors That Influence The Cost Of A $100,000 Whole Life Plan
First, it’s helpful to remember that every life insurance company has different underwriting and pricing.
That said, insurers use specific variables to determine each applicant’s net cost.
Below are the factors used to calculate the actual rate you’ll pay for a policy.
Gender
Females always pay about 30% less for life insurance products because they live longer than men.
So if you’re male, expect to pay higher rates than females.
The one exception to this rule is for the state of Montana. They have a law prohibiting life insurers from pricing males and females differently.
Sadly, life insurance companies in Montana simply charge females whatever they charge men. So, in effect, all the Montana state law did was raise prices for women.
Age
The older you are, the higher your rates will be.
That’s why buying funeral life insurance or any other type is always a good idea when you’re younger.
For example, one of the main reasons people buy children’s life insurance is to lock in super low rates.
Health
In short, specific health issues that are high risk can increase the cost (not always), but many do not.
For example, minor issues such as high blood pressure or cholesterol are relatively benign.
Insurers rarely charge higher premiums for those types of conditions.
However, if you have insulin diabetes or COPD, you’ll likely pay a higher rate because those are higher-risk conditions.
Also, every life insurance company will accept and reject different health conditions.
One of the keys to finding the best rate is by identifying which company is most accepting of all your health conditions.
You should work with a broker who can compare multiple insurance companies on your behalf. That way, they can determine which insurer is most friendly to your health conditions.
Tobacco usage
On average, people who consume tobacco products (cigarettes, chew, cigars, snuff) don’t live as long as those who don’t.
For that reason, expect higher premiums (about 50%-100% higher) if you’re a tobacco user.
Tip:
If you use non-cigarette tobacco, some insurers will actually offer you non-tobacco pricing.
Also, if you stop using tobacco, you’ll have to wait until it has been at least 12 months before you’re eligible for non-tobacco pricing.
Coverage amount
The more coverage you buy, the higher you’re quote will be.
Also, prices for life insurance are proportional.
For example, a $25,000 whole life policy is 1/4th the cost of a $100,000 whole life policy.
A $50,000 whole life plan is ½ the cost, and 10,000 would be 1/10th the price of $100K.
Application Options (Underwriting Processes)
There are three underwriting options for a $100,000 whole life insurance policy.
Which method you choose will determine how long it takes for your application to be approved. It also influences the price you pay.
For example, if you take a medical exam, you’ll likely have a lower price (per thousand of coverage). The reason is that the life insurance provider knows more about your health with a medical exam. That additional data translates to lower risk on their end.
When the insurer takes on less risk, the insurance cost will also be less.
No-exam
A no medical exam policy is often called “simplified issue” or “non-med.”
As the name implies, you don’t have to meet with a nurse to give a blood and urine sample.
The application only requires that you answer questions about your health history.
Additionally, the insurance company will electronically review your driving record and medication history.
These types of applications generally render an approval or decline within 15 minutes to a few business days.
Fully underwritten
Unlike senior burial insurance, a fully underwritten application does require you to undergo a medical exam.
You’ll meet with a nurse who will collect a blood and urine sample. They will also measure your height, weight, and blood pressure.
Additionally, the insurer will order copies of all your medical records.
Once they have all this data, they will determine if you’re approved and what the final price will be.
On average, fully underwritten applications can take up to three months to be approved or declined.
No question, fully underwritten applications can take a long time to complete.
The wait can be worth it because it usually results in a lower price on your coverage.
No health questions (guaranteed issue)
A guaranteed issue life insurance policy does not require you to answer health questions or take an exam.
Simply put, they guarantee your approval.
Many final expense policies are guaranteed issue.
While guaranteed approval may sound wonderful, there are drawbacks.
Primarily, the waiting period is the biggest downfall.
Life policies with no health questions all have a two-year waiting period.
If you die during the waiting period, the insurer will only refund your premiums plus a small amount of interest.
Tip:
To get life insurance with no waiting period, you must complete an application that includes a health questionnaire.
Other than the waiting period, the other downside to these policies is the cost.
Since the insurer knows nothing about your health, they absorb a high amount of risk. Because of the higher risk, the insurance is much more expensive.
In the end, the convenience of guaranteed issue is attractive. But it comes at the cost of higher prices and the waiting period.
Lastly, if you want $100,000 in whole life insurance, you’ll need to buy multiple guaranteed issue policies to get to that total.
That’s because guaranteed issue companies cap their coverage at $25,000.
For example, AAA and USAA offer only $25K in guaranteed acceptance coverage.
To get to $50K in total coverage, you’d have to buy $25K from AAA and then $25K from USAA.
So for $100,000, you would have to buy four guaranteed issue plans.
Limited Pay Whole Life Options
One of the unique options with whole life insurance is the ability to buy a policy that becomes “paid-up” after a specific period.
After you’ve made the payments for the required period, the policy lasts forever and no longer requires any additional premium.
The typical paid-up options are:
- 7 Pay
- 10 Pay
- 20 Pay
- Paid up at age 65
- Paid up at age 80
Your age will heavily influence what paid-up options are available to you (if any at all).
For example, if you’re 80 or older, you can get whole life insurance. But no insurer will offer a paid-up policy because you’re too old.
It’s worth noting, too, that not all insurers offer paid-up whole life policies.
The most important thing to understand about paid-up plans is the higher cost.
Because the insurer only collects premiums for a specified period, they have to charge a higher rate.
Below is a table that illustrates the monthly cost of a 20-pay $100,000 whole life policy.
| Age | Female Non Tobacco | Male Non Tobacco | Female Tobacco | Male Tobacco |
|---|---|---|---|---|
| 30-39 | $111 - $150 | $128 - $170 | $150 - $201 | $166 - $222 |
| 40-49 | $156 - $213 | $177 - $241 | $208 - $282 | $230 - $312 |
| 50-59 | $220 - $291 | $249 - $329 | $290 - $375 | $321 - $424 |
| 60-65 | $299 - $342 | $333 - $373 | $381 - $436 | $433 - $503 |
How Choice Mutual Can Help
Choice Mutual is an independent broker that partners with over 15 life insurance companies.
We work with multiple carriers to shop the market for each client.
We aim to match you with whichever will offer you the best price.
The best part is that working with us is completely free. And your insurance doesn’t cost more because you bought your policy through a broker.
Tip:
Most life insurance companies do not have a direct sales channel. Nearly all of them only sell their coverage through licensed brokers. So working with an agency gives you access to a much wider array of products compared to dealing with insurers who sell their products direct-to-consumer.
One of our friendly agents will answer all your questions and recommend the best policy.
We’re never pushy. We allow everyone to buy (or not) on their schedule.
Call us at 1-800-644-2926, and we’ll help you find the best $100,000 whole life policy (or any amount for that matter).
FAQs
How much does a $100000 whole life insurance policy cost? ›
The average monthly cost for $100,000 in life insurance for a 30-year-old is $11.02 for a 10-year policy and $12.59 for a 20-year policy.
What is actual cash value of whole life insurance? ›The life insurance net cash value is what the policyholder or their beneficiary has left over once the insurance company deducts its fees or any expenses incurred during the ownership of the policy.
Can I find out how much a life insurance policy is worth? ›The value of the policy typically refers to the death benefit. The death benefit is the amount that is paid out to your beneficiary when you die. The easiest way to determine the value is to contact the company that issued it. They should be able to tell you immediately what the value of your policy is.
How many people overestimate the cost of life insurance? ›Eight out of 10 consumers overestimate the expense of getting a life insurance policy, according to a study by LIMRA and Life Happens. Fewer than half of people without life insurance surveyed in this study say they feel financially secure.
How much does a $1000000 life insurance policy cost monthly? ›How Much Is a $1 Million Life Insurance Policy? The cost of a $1,000,000 life insurance policy for a 10-year term is $32.05 per month on average. If you prefer a 20-year plan, you'll pay an average monthly premium of $46.65.
How long should you pay for whole life insurance? ›Most whole life policies endow at age 100. When a policyholder outlives the policy, the insurance company may pay the full cash value to the policyholder (which in this case equals the coverage amount) and close the policy. Others grant an extension to the policyholder who continues paying premiums until they pass.
How long does it take for whole life insurance to build cash value? ›How fast does cash value build in life insurance? Most permanent life insurance policies begin to accrue cash value in 2 to 5 years. However, it can take decades to see significant cash value accumulation. Consult a licensed insurance agent to understand the policy's cash value projections before applying.
What happens when a whole life policy is paid up? ›Once the policy is paid-up, it's guaranteed to remain in effect for the rest of the insured's life. The life insurance company will evaluate the policy's current cash value and calculate the death benefit amount supported by that current cash value amount.
How long does whole life insurance take to build cash value? ›With a cash value policy, your premiums are typically set at a fixed rate. A portion of your premium goes to fund the death benefit. Another portion goes to fund the cash value of your policy. In most cases, the cash value doesn't begin to accrue until 2-5 years have passed.
Can you take the cash value out of a whole life policy? ›If you have a permanent life insurance policy, then yes, you can take cash out before your death. There are three main ways to do this. First, you can take out a loan against your policy (repaying it is optional).
Does whole life insurance expire at a certain age? ›
It depends on the type of policy. If you have a term life insurance policy, your policy will expire after the term you selected ends. If you have a permanent life insurance policy (like whole or universal), your policy will remain in force as long as you continue to pay the premiums on time and in full.
What life insurance builds the most cash value? ›Whole-life policies generally have a higher cash value than term-life policies, and older policies tend to have a higher cash value than newer policies.
What is the downside to whole life insurance policies? ›With that being said, the major downside of whole life insurance is the higher cost. By and large, you can expect to pay at least 10 times more for whole life insurance than you would for term life coverage in the same amount.
Why are whole life policies so expensive? ›Even so, whole life insurance tends to have higher premiums than term life insurance. The premiums are higher because the payments are put into an account that accumulates over time. This can provide you more security when the time comes. Term life insurance usually has lower premiums.
What percentage of Americans have whole life insurance? ›Households with a lower income are less likely to own a life insurance policy. About 50% of Americans own life insurance as of 2022. This marks a 2% decrease from 2021 and about a 13% decrease over the last decade.
How much does a $500000 whole life insurance policy cost? ›On average, a 40-year-old with excellent health buying a $500,000 life insurance policy will pay $18.44 for a 10-year term and $24.82 for a 20-year term.
Do you have to pay taxes on a million dollar life insurance policy? ›The amount of the death benefit will vary depending on the type of policy and the insurer, but can range from a few thousand dollars to more than $1 million. This payout is tax-exempt and may be paid out in one lump sum or over time. However, any interest that is earned on the death benefit is subject to tax.
How much is a million dollar life insurance for a 45 year old? ›For many rich people, it makes sense to purchase whole life insurance, because this kind of policy can provide a death benefit to loved ones that is generally tax free. And this money can be used to pay estate or inheritance taxes, so that other estate assets do not have to be liquidated to cover this cost.
Does whole life insurance eventually pay for itself? ›While actual growth varies by policy, some take decades before the accumulated cash value exceeds the amount of premiums paid. This is because the entire premium does not go to the cash value—only a small portion. The rest goes to paying for the insurance itself and expense charges.
What happens to a whole life policy if you stop paying? ›
If you stop paying your whole life insurance premiums, you'll typically have a 30-day grace period before your policy will lapse. However, depending on how long you've had the policy, you may face surrender fees.
What does Suze Orman say about whole life insurance? ›Suze Orman isn't a fan of whole life insurance, and especially not as an investment. Investment portfolios for whole life policies usually have expensive fees and are overly conservative. Keep your investments and insurance separate, and stick to term life insurance instead of whole life.
How to use whole life insurance to create wealth? ›With a permanent policy, you pay into two pots: the death benefit and cash value. The former grows your death benefit with each monthly payment, but it's the latter that helps you build wealth. With the cash-value aspect, you can grow your wealth each month and build savings over the years.
Does whole life insurance grow in value? ›Whole life policies have a component referred to as the policy's cash value: A portion of your premium dollars can grow over time on a tax-deferred basis, so you don't pay taxes on the gains.
Who is whole life insurance best for? ›Whole life insurance offers coverage for life, so it's best for people who need to cover permanent financial needs. If you want to pay for your funeral and any debts you have — no matter your age at death — a whole life insurance policy may be the right fit.
How much can I borrow from my whole life insurance policy? ›Loan limits: The limit for borrowing money from life insurance is set by the insurer, and it's typically no more than 90% of the policy's cash value. If you need more than that amount, you may need to consider other loan types.
How millionaires build wealth using life insurance? ›How do rich people use life insurance to build wealth? High-earners and wealthy people can use life insurance to pay estate taxes on a large inheritance. Cash value life insurance offers an alternative tax-deferred investment account if you've maxed out traditional accounts.
What disqualifies life insurance payout? ›Any life insurance company could refuse to pay your policy claim if your death occurred during a criminal activity like theft or even the illegal consumption of alcohol or drugs. However, sometimes your claim can be denied if your death happens even while trespassing, which is considered a criminal activity.
What age is best to buy whole life insurance? ›Whole life policies become more expensive as you age, so the younger you are at the time of purchase, the more affordable it will be over the span of your life. 30 to 60 years old: Whole or universal life policies can be good options, depending on your financial situation.
What happens if I outlive my whole life insurance policy? ›If you outlive your policy, your coverage will expire. Therefore, you will not owe anything to the insurance company and will not be required to pay back any of the premiums you have paid over the years.
What are the pros and cons of whole life insurance? ›
| Pro | Con |
|---|---|
| Permanent protection that lasts your entire life | Significantly more expensive than term life |
| Premiums never increase | Best to take out when younger for more affordable premiums |
| The death benefit will not decrease | Your protection needs may change as your life changes |
Life insurance is a popular way for the wealthy to maximize their after-tax estate and have more money to pass on to heirs.
Can selling life insurance make you a millionaire? ›Is It Possible To Become A Millionaire Selling Insurance? A big yes. But like any other job, it takes time to be good at what you do and attain such income levels. Top agents earn anywhere between $100,000 to one million dollars.
What is the best whole life insurance for seniors? ›- Guardian Life: Best for payment flexibility.
- MassMutual: Best for elderly applicants.
- Northwestern Mutual: Best for the potential to earn dividends.
- New York Life: Best coverage range.
- State Farm: Best for customer satisfaction.
- USAA: Best for coverage flexibility.
With that being said, the major downside of whole life insurance is the higher cost. By and large, you can expect to pay at least 10 times more for whole life insurance than you would for term life coverage in the same amount.
Is whole life insurance the most expensive? ›Whole life insurance is designed to last you your whole life. This coupled with the added component of having the potential to accumulate cash value over time, is generally what makes whole life more expensive than other types of life insurance.
Do wealthy people use whole life insurance? ›For many rich people, it makes sense to purchase whole life insurance, because this kind of policy can provide a death benefit to loved ones that is generally tax free. And this money can be used to pay estate or inheritance taxes, so that other estate assets do not have to be liquidated to cover this cost.
Does whole life insurance premium increase with age? ›Whole life policies become more expensive as you age, so the younger you are at the time of purchase, the more affordable it will be over the span of your life. 30 to 60 years old: Whole or universal life policies can be good options, depending on your financial situation.
Why is whole life not a good investment? ›Whole life policies can underperform compared to the level of returns you might be able to get with other investments. Withdrawing money or taking a policy loan and not paying it back will reduce the death benefit that's paid out when you pass away.
How much does whole life insurance cost for a 60 year old? ›| Age | Coverage amount: $35,000 |
|---|---|
| 50 years old | Coverage amount: $35,000 Male: $125.18Female: $94.54 |
| 60 years old | Coverage amount: $35,000 Male: $174.17Female: $135.68 |
| 70 years old | Coverage amount: $35,000 Male: $263.42Female: $209.16 |
What are the 3 advantages of whole life insurance? ›
Why do people choose whole life insurance? Whole life insurance builds cash value, provides permanent coverage, and can help build your family's wealth over the long term.
Do most experts recommend whole life or term life insurance? ›If you only need life insurance for a relatively short period of time (such as only when you have minor children to raise), term life may be better, as the premiums are more affordable. If you need permanent coverage that lasts your entire life, whole life is likely preferred.