The cost of a term life insurance policy for one million dollars depends on the applicant’s age, gender and where he or she resides.
Sample non-smoker premiums for New York and Toronto men and women from ages 25 to 70 are compared in this article. Source premium data is from the Term4Sale website, a free online rate calculator.
Annual rates for each age shown below are guaranteed for a 5-year period. This type of coverage is called 5-year level or guaranteed term life insurance. Dollar amounts are stated in their original U.S. and Canadian currencies.
Term Life Rates by Age for American Males
The average rates below show how much American males will have to pay for a term life insurance policy worth $1 million dollars. Premiums accelerate as men move into higher age bands, and nearly triple at ages 45 and 65.
- Age 25 … US$700
- Age 35 … $800 (15% higher than at age 25)
- Age 45 … $1,820 (160% higher)
- Age 55 … $4,405 (529% higher)
- Age 65 … $10,090 (1,341% higher)
- Age 70 … $15,570 (2,124% higher).
The average premium for senior men age 70 is more than 20 times more expensive than the rate that 25 year olds pay.
American Female Average Term Life Premiums
Due to longer life expectancies, American women pay lower premiums than men of the same age. This female-factor discount jumps dramatically at ages 45 and 55.
- Age 25 … US$545 (22.1% less than US male rate)
- Age 35 … $680 (15% less)
- Age 45 … $1,295 (28.8% less)
- Age 55 … $2,645 (40% less)
- Age 65 … $5,595 (44.5% less)
- Age 70 … $8,105 (47.9% less).
By age 70, the sample American female rates are almost half the average premiums for 70-year-old males.
Term Life Rates for Canadian Men
Before age 70, Canadian males pay higher premium rates for a million-dollar insurance policy than their U.S. counterparts. The percentage amounts below are not adjusted for currency exchange differences. Even so, the average rates at ages 25 and 35 clearly show much higher quotes Canadian men.
- Age 25 … C$974 (28.1% more than US male rate)
- Age 35 … $1,106 (27.7% more)
- Age 45 … $2,154 (15.5% more)
- Age 55 … $4,829 (8.8% more)
- Age 65 … $10,718 (5.9% more)
- Age 70 … $10,695 (45.6% less).
At age 70, the rate comparison shifts dramatically in favor of Canadian men. Then, Canadian males are charged much less than the average premium billed to American men of the same age.
Term Life Insurance Rates for Canadian Women
Canadian females can expect to pay higher premiums than women who reside in the U.S. The percentage savings for American females are highest at and before age 35, although the comparative discount at age 55 is also significant at 20.7%.
- Age 25 … C$766 (28.9% more than US female rate)
- Age 35 … $894 (23.9% more)
- Age 45 … $1,509 (14.2% more)
- Age 55 … $3,336 (20.7% more)
- Age 65 … $6,022 (7.1% more)
- Age 70 … $9,395 (13.7% more).
At age 65, term life insurance rates for Canadian females is within single-digits of the average premium for American women. Depending on the exchange rate, those rates could be loosely referred to as equivalent.
Life Insurance Rate Comparison Discounts
Based on the above sample statistics, buying a term life insurance policy worth one million dollars is generally costs less for U.S. residents than for Canadians.
In both countries, average premium rates are clearly lower for women than for men.
If the exchange rate is ignored, American men appear to enjoy cheaper average premiums than younger Canadian women. But by age 45 and more so at older age ranges, insurance costs for million-dollar term life insurance are definitively more expensive for American males compared to the average premium quoted to Canadian females.
Yes, premium discounts can be found on both sides of the border.
Regardless of age, gender or place of residence, consumers can find the lowest possible premium rates for million-dollar coverage by shopping around. One way to compare for the best term life deals online is to visit life insurance quote websites.
Daniel Workman - A senior business and finance writer who also does French translations, notably international trade and insurance materials.
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