Return of Premium Life Insurance Rates For 18-Year-Olds
- Updated: February 20, 2023
Eighteen is an important age in life for a variety of reasons. On the one hand, it’s the age at which many people are graduating from high school or college and embarking on adulthood.
It’s also the legal age at which some life-altering decisions, such as obtaining a driver’s license or travelling alone, can be made. For many, turning 18 is also a sign of financial independence from their parents.
They may start to work their first full-time job and begin thinking about ways to purchase their own car or home. However, despite the excitement of turning 18, it is important for individuals to think about their future and plan for any unforeseen circumstances. Life insurance is one of the most important components of planning for the future, and at age 18, it can provide a layer of financial security in difficult times.
In the event of an unexpected death or illness, life insurance can help provide for loved ones, pay off debts, or cover funeral expenses. It can also help ensure that any long-term goals or plans, such as saving for college or purchasing a home, are still achievable. Thus, purchasing life insurance at age 18 is an important step to ensuring a secure future.
(Note: See here for the cost of ROP term life insurance for a 19-year-old.)
Table of Contents
Male Return of Premium Rates (Age 18)
| Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
|---|---|---|---|---|---|
| 18 | Men | No | $25,000 | $10 | $9 |
| 18 | Men | No | $50,000 | $14 | $12 |
| 18 | Men | No | $75,000 | $18 | $15 |
| 18 | Men | No | $100,000 | $22 | $19 |
| 18 | Men | No | $150,000 | $29 | $25 |
| 18 | Men | No | $200,000 | $37 | $31 |
| 18 | Men | No | $250,000 | $36 | $33 |
| 18 | Men | No | $300,000 | $42 | $38 |
| 18 | Men | No | $400,000 | $53 | $49 |
| 18 | Men | No | $500,000 | $65 | $59 |
| 18 | Men | No | $1,000,000 | $118 | $105 |
The above data shows the rates for male non-smokers purchasing return of premium life insurance at the age of 18. The rates are given for coverage amounts ranging from $25,000 to $1,000,000 and for two term lengths: 20-year and 30-year. Return of premium means that if the policyholder survives the term of the policy, they will receive all of their premiums paid back to them.
For example, a man who is 18-years-old and wants a $100,000 return of premium policy for 20 years will pay $22 per month. If he chooses a 30-year policy instead, he will pay $19 per month. The difference between the two rates is $3 per month or $36 per year. Alternatively, a man who is 18 and wants a $500,000 return of premium policy will pay $65 per month for a 20-year policy and $59 per month for a 30-year policy.
The cost per dollar of coverage increases as the coverage amount increases. For example, a $25,000 policy costs $0.40 per dollar of coverage for a 20-year term and $0.36 per dollar of coverage for a 30-year term. In contrast, a $1,000,000 policy costs $0.118 per dollar of coverage for a 20-year term and $0.105 per dollar of coverage for a 30-year term.
ROP Term Life Cost (Male Smokers; Age 18)
| Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
|---|---|---|---|---|---|
| 18 | Men | Yes | $25,000 | $16 | $15 |
| 18 | Men | Yes | $50,000 | $26 | $24 |
| 18 | Men | Yes | $75,000 | $35 | $33 |
| 18 | Men | Yes | $100,000 | $45 | $42 |
| 18 | Men | Yes | $150,000 | $65 | $61 |
| 18 | Men | Yes | $200,000 | $84 | $79 |
| 18 | Men | Yes | $250,000 | $92 | $85 |
| 18 | Men | Yes | $300,000 | $109 | $101 |
| 18 | Men | Yes | $400,000 | $144 | $132 |
| 18 | Men | Yes | $500,000 | $172 | $157 |
| 18 | Men | Yes | $1,000,000 | $332 | $304 |
This data shows the cost of term life insurance policies for male smokers at age 18. The rates are based on the coverage amount, either $25,000, $50,000, $75,000, $100,000, $150,000, $200,000, $250,000, $300,000, $400,000, $500,000 or $1,000,000.
For example, the rate for a 20-year policy with a $100,000 coverage amount is $45, while the rate for a 30-year policy with the same coverage amount is $42. Thus, the difference in rates between a 20-year and a 30-year policy is not that significant for this coverage amount.
As for the cost per dollar of coverage, it varies depending on the coverage amount and term length. For example, the cost per dollar of coverage is higher for the lower coverage amounts of $25,000 and $50,000 compared to the higher coverage amounts of $500,000 and $1,000,000. Additionally, the longer the term length, the higher the cost per dollar of coverage for all coverage amounts.
ROP Life Insurance Prices (Female Smokers; Age 18)
| Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
|---|---|---|---|---|---|
| 18 | Women | Yes | $25,000 | $11 | $13 |
| 18 | Women | Yes | $50,000 | $17 | $20 |
| 18 | Women | Yes | $75,000 | $22 | $26 |
| 18 | Women | Yes | $100,000 | $27 | $33 |
| 18 | Women | Yes | $150,000 | $37 | $47 |
| 18 | Women | Yes | $200,000 | $48 | $60 |
| 18 | Women | Yes | $250,000 | $53 | $64 |
| 18 | Women | Yes | $300,000 | $62 | $76 |
| 18 | Women | Yes | $400,000 | $81 | $99 |
| 18 | Women | Yes | $500,000 | $99 | $117 |
| 18 | Women | Yes | $1,000,000 | $185 | $224 |
The above table shows the rates for female return of premium term policies for an 18-year-old non-smoker. This means that the policy premiums will be refunded to the policyholder at the end of the policy term if they are still alive.
Let’s take a look at the rates for two coverage amounts – $100,000 and $500,000. For a 20-year term policy, the rate for $100,000 coverage is $14, while for $500,000 coverage, the rate is $38. For a 30-year term policy, the rate for $100,000 coverage is $14, while for $500,000 coverage, the rate is $41.
The difference in rates between a 20-year and a 30-year term policy is not significant, as the rate for each coverage amount increases by only a few dollars over the 10-year difference. However, it’s important to note that the longer the policy term, the higher the total cost of the policy will be.
Looking at the cost per dollar of coverage, we can see that as the coverage amount increases, the rate per dollar of coverage decreases. For example, for a 20-year term policy, the rate per dollar of coverage for $25,000 coverage is $0.32, while for $1,000,000 coverage, the rate per dollar of coverage is $0.068. This means that the policyholder is paying less per dollar of coverage as their coverage amount increases.
ROP Life Insurance Prices (Female Smokers; Age 18)
| Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
|---|---|---|---|---|---|
| 18 | Women | Yes | $25,000 | $11 | $13 |
| 18 | Women | Yes | $50,000 | $17 | $20 |
| 18 | Women | Yes | $75,000 | $22 | $26 |
| 18 | Women | Yes | $100,000 | $27 | $33 |
| 18 | Women | Yes | $150,000 | $37 | $47 |
| 18 | Women | Yes | $200,000 | $48 | $60 |
| 18 | Women | Yes | $250,000 | $53 | $64 |
| 18 | Women | Yes | $300,000 | $62 | $76 |
| 18 | Women | Yes | $400,000 | $81 | $99 |
| 18 | Women | Yes | $500,000 | $99 | $117 |
| 18 | Women | Yes | $1,000,000 | $185 | $224 |
The above table shows life insurance prices for female smokers who are 18 years old. The rates are for term policies with a coverage amount ranging from $25,000 to $1,000,000. The rates are different based on the coverage amount and term length of the policy.
For example, for a coverage amount of $50,000, the rate for a 20-year policy is $17 and for a 30-year policy it is $20. For a coverage amount of $250,000, the rate for a 20-year policy is $53 and for a 30-year policy it is $64.
As you can see, the rate is higher for a longer term policy. The difference in rates between a 20-year and a 30-year term policy varies across coverage amounts.
In terms of cost per dollar of coverage, as the coverage amount increases, the cost per dollar of coverage decreases. For example, for a coverage amount of $25,000, the cost per dollar of coverage for a 20-year policy is $0.44 and for a 30-year policy it is $0.52. However, for a coverage amount of $1,000,000, the cost per dollar of coverage for a 20-year policy is $0.19 and for a 30-year policy it is $0.22.
