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Home > Basics > Permanent Life Insurance Rates

Permanent Life Insurance Rates

Due to the “permanent” nature of this type of policy, the rates are much more expensive than for a term life insurance policy. The premiums for permanent life insurance are higher since the cost is spread over the life of the policy at a level rate. Additionally, the cash building component of a permanent life insurance policy banks a portion of the premium to develop cash value. This cash value can be borrowed against to fund a college education, pay a mortgage or pay other financial obligations.

Rate Class Affects Cost of Life Insurance

When buying permanent life insurance, you will need to have a medical exam to make a determination about your “rate class.” In addition to a basic physical, you will likely need to provide a urine specimen, have blood taken, and in some cases, have an X-ray or EKG. The exam, plus your lifestyle, medical history, and whether or not you are a smoker all contribute to your “rate class.” While there are different classifications, the bottom line is that the better the rate class, the lower your rates will be.

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Life Insurance Is A Better Value Over Time

Despite the steep cost of the premium, permanent life insurance generally is more affordable over time because the premium remains constant. Since it also builds cash value in addition to the death benefit, it provides more return on investment than a term policy.

The following chart is from the My Life Insured website, and provides an excellent comparison of term life and permanent life premiums for a male, preferred non smoker classification at various ages.


Term Life

Permanent Life



















Compare Life Insurance Pricing and Companies

As with all decisions about big ticket purchases, you will want to take the time to research your options and shop around for the best rates. Review company information and ratings from Standard and Poor’s or A.M. Best to ensure that you will be working with a reliable life insurance company.

Life-Insurance-Info.us is not a life insurance broker or carrier, and cannot issue life insurance policies. This site provides free information on insurance providers and coverage options. We are not associated with the companies profiled on Life-Insurance-Info.us and we make no representation, express or implied, that you will receive a quote from a specific company profiled herein. Products and policies may not be available in all states, and product and policy information is subject to change without notice. Please contact the insurance company directly to answer your policy inquiries.