Return of Premium Life Insurance Rates For 20-Year-Olds
- Updated: February 20, 2023

Twenty is an important age in life as it marks the beginning of adulthood and a new chapter of independence and self-discovery. Young adults at this age may have reached significant milestones such as completing their education, gaining meaningful work experience, and starting a career.
It is also a time when many people begin exploring their passions and engaging in activities that create meaningful relationships and promote growth. However, age twenty additionally marks the start of responsibility that necessitates life insurance.
At this age, many people may start taking on financial obligations such as loans, rent, and vehicle payments, while also establishing a career. As such, life insurance can help protect them and their loved ones in the event of an unexpected death. Life insurance can help pay for final expenses and debts, as well as replace lost income and provide continued financial protection for their family.
Additionally, now is the best time to purchase life insurance. As life insurance is based on age, health, and lifestyle, individuals in their twenties may have the lowest premiums and best coverage options. Without health complications, individuals in their twenties may find the best coverage options at affordable rates that can last for years to come.
(Note: See here for 19-year-old ROP rates or the cost of ROP term life insurance for a 21-year-old.)
Table of Contents
Male Return of Premium Rates (Age 20)
Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
---|---|---|---|---|---|
20 | Men | No | $25,000 | $10 | $9 |
20 | Men | No | $50,000 | $14 | $12 |
20 | Men | No | $75,000 | $18 | $15 |
20 | Men | No | $100,000 | $22 | $19 |
20 | Men | No | $150,000 | $29 | $25 |
20 | Men | No | $200,000 | $37 | $31 |
20 | Men | No | $250,000 | $36 | $33 |
20 | Men | No | $300,000 | $42 | $38 |
20 | Men | No | $400,000 | $53 | $49 |
20 | Men | No | $500,000 | $65 | $59 |
20 | Men | No | $1,000,000 | $118 | $105 |
Looking at the table above, we can see the male return of premium rates for individuals who are 20 years old. Let’s focus on the coverage amount and rates for two different levels – $100,000 and $500,000.
For a $100,000 coverage amount, the rate for a 20-year term policy is $22, whereas for a 30-year term policy, it is $19. The difference between the rates for the two terms is $3. For a $500,000 coverage amount, the rate for a 20-year term policy is $65, whereas for a 30-year term policy, it is $59. The difference between the rates for the two terms is $6.
We can also see that the cost per dollar of coverage decreases as the coverage amount increases. For example, for a 20-year term policy, the cost per dollar of coverage is highest for a $25,000 coverage amount, at $0.40 per dollar of coverage, and gradually decreases to $0.26 per dollar of coverage for a $1,000,000 coverage amount.
Similarly, for a 30-year term policy, the cost per dollar of coverage is highest for a $25,000 coverage amount, at $0.36 per dollar of coverage, and decreases to $0.21 per dollar of coverage for a $1,000,000 coverage amount..
ROP Term Life Cost (Male Smokers; Age 20)
Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
---|---|---|---|---|---|
20 | Men | Yes | $25,000 | $16 | $15 |
20 | Men | Yes | $50,000 | $26 | $24 |
20 | Men | Yes | $75,000 | $35 | $33 |
20 | Men | Yes | $100,000 | $45 | $42 |
20 | Men | Yes | $150,000 | $65 | $61 |
20 | Men | Yes | $200,000 | $84 | $79 |
20 | Men | Yes | $250,000 | $92 | $85 |
20 | Men | Yes | $300,000 | $109 | $101 |
20 | Men | Yes | $400,000 | $144 | $132 |
20 | Men | Yes | $500,000 | $172 | $157 |
20 | Men | Yes | $1,000,000 | $332 | $304 |
Looking at the table, we can see that for male smokers aged 20, the rates for a 20-year term policy range from $16 for $25,000 coverage to $332 for $1,000,000 coverage. For a 30-year term policy, the rates range from $15 for $25,000 coverage to $304 for $1,000,000 coverage.
Let’s take $100,000 and $500,000 coverage amounts as examples. For $100,000 coverage, the 20-year term policy rate is $45, while the 30-year term policy rate is $42. The difference in rates between the two term lengths is $3, which may not seem like much, but over the course of 20 or 30 years, it does add up. For $500,000 coverage, the 20-year term policy rate is $172, while the 30-year term policy rate is $157. Here, the difference is $15, which is more significant than for the $100,000 coverage amount.
It’s interesting to note that the cost per dollar of coverage decreases as the coverage amount increases. For example, the rate for $25,000 coverage is $16 for a 20-year term policy, making the cost per dollar of coverage $0.64. However, for $500,000 coverage, the 20-year term policy rate is $172, making the cost per dollar of coverage only $0.34. This means that as the coverage amount increases, the cost per dollar of coverage decreases, making it more affordable for those who need more coverage.
ROP Life Insurance Prices (Female Smokers; Age 20)
Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
---|---|---|---|---|---|
20 | Women | Yes | $25,000 | $11 | $13 |
20 | Women | Yes | $50,000 | $17 | $20 |
20 | Women | Yes | $75,000 | $22 | $26 |
20 | Women | Yes | $100,000 | $27 | $33 |
20 | Women | Yes | $150,000 | $37 | $47 |
20 | Women | Yes | $200,000 | $48 | $60 |
20 | Women | Yes | $250,000 | $53 | $64 |
20 | Women | Yes | $300,000 | $62 | $76 |
20 | Women | Yes | $400,000 | $81 | $99 |
20 | Women | Yes | $500,000 | $99 | $117 |
20 | Women | Yes | $1,000,000 | $185 | $224 |
Looking at the table, let’s choose $100,000 and $500,000 coverage amounts to analyze. For a $100,000 coverage amount, the rate for a 20-year term is $14, and for a 30-year term, it is $14 as well. On the other hand, for a $500,000 coverage amount, the rate for a 20-year term is $38, and for a 30-year term, it is $41. We can see that for both coverage amounts, the rate remains unchanged for both 20 and 30-year terms.
While analyzing the difference in rates between a 20-year and a 30-year term policies for these coverage amounts, we can see that the rates for the 30-year term policies are slightly higher than the 20-year term policies for $500,000 coverage amount. The difference in rate for $500,000 coverage amount between a 20-year and a 30-year term policy is $3.
Furthermore, the cost per dollar of coverage increases as coverage amount increases. We can see that for a $25,000 coverage amount, the cost per dollar of coverage is the lowest at $0.00032 for both 20 and 30-year term policies. However, for a $1,000,000 coverage amount, the cost per dollar of coverage is the highest at $0.00068 and $0.00077 for 20 and 30-year term policies, respectively.
ROP Life Insurance Prices (Female Smokers; Age 20)
Age | Gender | Smoker | Coverage | Rate (20-Year) | Rate (30-Year) |
---|---|---|---|---|---|
20 | Women | Yes | $25,000 | $11 | $13 |
20 | Women | Yes | $50,000 | $17 | $20 |
20 | Women | Yes | $75,000 | $22 | $26 |
20 | Women | Yes | $100,000 | $27 | $33 |
20 | Women | Yes | $150,000 | $37 | $47 |
20 | Women | Yes | $200,000 | $48 | $60 |
20 | Women | Yes | $250,000 | $53 | $64 |
20 | Women | Yes | $300,000 | $62 | $76 |
20 | Women | Yes | $400,000 | $81 | $99 |
20 | Women | Yes | $500,000 | $99 | $117 |
20 | Women | Yes | $1,000,000 | $185 | $224 |
For instance, let’s take coverage amounts of $100,000 and $500,000. At $100,000 coverage, the rate for a 20-year term policy is $27, and for a 30-year term policy, it is $33. On the other hand, for a $500,000 coverage amount, the rates are $99 for a 20-year term policy and $117 for a 30-year term policy. Therefore, the difference in rates between a 20-year and a 30-year term policy is $6 for the $100,000 coverage and $18 for the $500,000 coverage.
Now, let’s consider how the cost per dollar of coverage varies for different coverage amounts and term lengths. We can see that the cost per dollar of coverage decreases as the coverage amount increases. For instance, the rate per $1,000 of coverage for a 20-year term policy is $0.11 for $25,000 coverage, while for $1,000,000 coverage, it is $0.185. Similarly, for a 30-year term policy, the rate per $1,000 of coverage is $0.13 for $25,000 coverage, while for $1,000,000 coverage, it is $0.224.