In this article, you’ll see how much a $100,000 whole life insurance policy costs, how whole life works, the various ways to qualify, and which factors influence the price.

How Much Does A $100,000 Whole Life Insurance Policy Cost?

On average, a $100,000 whole life policy will 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.

Below is a whole life insurance rates chart that depicts sample rates for a $100K whole life policy.

AgeFemale
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, COPD, or kidney disease, 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 40%-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 your 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 $75,000 whole life policy is 75% of the cost of $100K.

A $50,000 whole life plan is ½ the cost, and $10,000 would be 1/10th the price of $100K.

 

Application Underwriting Options

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 and it influences your price.

For example, if you take a medical exam, you’ll likely have a lower cost (per thousand dollars of coverage). Completing a medical exam leads to a lower cost because the life insurance provider knows far more about your present and past health. Knowing more about your health translates to less risk on their end. With any form of insurance, lower risk translates into a lower price.

 

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 complete 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 six to eight weeks to be approved or declined.

Yes, fully underwritten applications can take a long time to complete, but the wait can be worth it because it usually results in a lower price.

 

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 acceptance.

While guaranteed approval may sound wonderful, there are drawbacks to consider.

Primarily, the waiting period is the biggest downfall to be aware of.

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 a guaranteed issue policy 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 a maximum of $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.

 

How Does Whole Life Insurance Work?

Whole life insurance is a type of permanent coverage that lasts forever.

Regardless of age, the policy will remain in force indefinitely if you reliably make all your payments.

Whole life insurance comes with iron-clad guarantees.

The policy premiums cannot increase, the coverage cannot decrease, and it will never terminate due to age.

There’s also a cash value component that accrues over time. You can withdraw the cash value and spend it any way you want.

As with any life insurance, the policy will ultimately pay your loved ones a tax-free cash payment of $100,000 (or however much coverage you buy).

There’s never any tax due on a life insurance payout, nor are there restrictions on how the money is spent.

If you’re looking for a policy to cover the cost of a funeral, a $100K death benefit is far more than necessary.

 

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.

AgeFemale
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. Our goal is simply to match you with whichever provider will offer you the best price on a final expense policy (or any type of coverage).

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.

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).