The cost of whole life insurance can vary significantly from state to state. The good news is that we have included whole life insurance rates by state for all 50 states.
Let’s discover which states have the most affordable whole life insurance and take a look at some of the most expensive and most cost-effective states for permanent life coverage.
Key Takeaways:
- Average cost: ~$3,147/year ($262/month) for a healthy 35-year-old with $500,000 coverage.
- State spread: Cheapest states (ND, WY, ID, SD) are ~$2,500–$2,600/yr; priciest (NY, NJ, CA, CT) run ~$3,600–$4,100/yr.
- Cost drivers: Age, health, and state rules explain most of the difference — carriers like Ethos, MassMutual, Guardian, and Penn Mutual consistently land in the competitive range.
How Much Does Whole Life Insurance Cost In The U.S.?
On average, whole life insurance costs about 10-15 times more than term life insurance due to the guaranteed cash value component and lifetime coverage. The cost can vary based on several factors, including age, health, location, death benefit amount, and the insurance company you choose.
What Is The Average Cost Of Whole Life Insurance?
The national average cost of Whole Life Insurance is around $3,147 per year for a healthy 35-year-old with $500,000 in coverage. Whole life premiums typically cost 10-15 times more than term life insurance due to the guaranteed cash value component and lifetime coverage.
How Much Does Whole Life Insurance Cost Per Month?
The national average cost of whole life insurance is around $262 per month in the United States for a $500,000 policy on a healthy 35-year-old; however, keep in mind that your rates may vary. Rates are state-specific and company-specific, so it’s best to compare quotes before finalizing a policy.
Average Cost Of Whole Life Insurance Rates By State
Whole Life Insurance costs vary significantly from state to state. The most expensive state for whole life insurance is New Jersey, where the average annual premium is $3,802. On the other hand, North Dakota has the most affordable whole life insurance, with an average annual premium of only $2,524.
Whole Life Insurance Rates By State Chart
| STATE | ANNUAL PREMIUM | STATE | ANNUAL PREMIUM |
| Alabama | $2,995 | Montana | $2,673 |
| Alaska | $3,312 | Nebraska | $2,822 |
| Arizona | $2,843 | Nevada | $2,960 |
| Arkansas | $2,908 | New Hampshire | $3,099 |
| California | $3,631 | New Jersey | $3,802 |
| Colorado | $3,025 | New Mexico | $2,707 |
| Connecticut | $3,589 | New York | N/A |
| Delaware | $3,292 | North Carolina | $2,960 |
| District Of Columbia | $3,504 | North Dakota | $2,524 |
| Florida | $3,206 | Ohio | $2,898 |
| Georgia | $3,036 | Oklahoma | $2,641 |
| Hawaii | $3,376 | Oregon | $3,041 |
| Idaho | $2,610 | Pennsylvania | $3,131 |
| Illinois | $3,206 | Rhode Island | $3,493 |
| Indiana | $2,863 | South Carolina | $3,025 |
| Iowa | $2,715 | South Dakota | $2,610 |
| Kansas | $2,822 | Tennessee | $2,898 |
| Kentucky | $2,939 | Texas | $3,099 |
| Louisiana | $3,216 | Utah | $2,673 |
| Maine | $3,054 | Vermont | $3,225 |
| Maryland | $3,312 | Virginia | $3,099 |
| Massachusetts | $3,525 | Washington | $3,131 |
| Michigan | $3,036 | West Virginia | $2,908 |
| Minnesota | $2,960 | Wisconsin | $2,843 |
| Mississippi | $3,014 | Wyoming | $2,535 |
| Missouri | $2,801 |
What Are the 7 Most Affordable States For Whole Life Insurance?
- North Dakota – $2,524 per year
- Wyoming – $2,535 per year
- Idaho – $2,610 per year
- South Dakota – $2,610 per year
- Oklahoma – $2,641 per year
- Utah – $2,673 per year
- Montana – $2,673 per year
What States Have the Highest Whole Life Insurance Rates?
As you will see below, whole life insurance rates can vary significantly by state, with New York having the highest annual premium at $4,125 and North Dakota having the lowest at $2,524.
| STATE | MONTHLY PREMIUM |
| New York | $343.75 |
| New Jersey | $316.83 |
| California | $302.58 |
| Connecticut | $299.08 |
| Massachusetts | $293.75 |
| Rhode Island | $291.08 |
| District of Columbia | $292.00 |
Whole Life Insurance Cost Vs. Other Life Insurance Types
Whole life insurance serves different purposes and comes with different costs compared to other life insurance products. Let’s compare them:
Is Whole Life More Expensive Or Cheaper Than Term Life Insurance?
Whole life insurance is significantly more expensive than term life insurance. This is because whole life policies include guaranteed cash value accumulation and provide permanent coverage. On average, whole life insurance costs about 10-15 times more than term life insurance for the same death benefit amount.
Is Whole Life More Expensive Or Cheaper Than Universal Life Insurance?
Whole life insurance is typically 10-20% more expensive than universal life insurance. While both offer permanent coverage and cash value accumulation, whole life policies provide guaranteed premiums and cash value growth, while universal life offers more flexibility but less guarantees.
Is Whole Life More Expensive Or Cheaper Than Variable Life Insurance?
Whole life insurance costs are generally similar to variable life insurance, though whole life policies provide guaranteed cash value growth while variable life policies offer potentially higher returns with market risk.
Who Has The Best Whole Life Insurance Rates By State?
Ethos stands out as our top choice nationwide for whole life insurance due to its competitive pricing, streamlined digital application process, and comprehensive coverage options. While rates vary by state due to factors like mortality rates, state regulations, and local market conditions, Ethos consistently offers some of the most competitive rates across all 50 states.
Top Whole Life Providers At A Glance
Ethos:
Our primary recommendation nationwide with competitive rates across all states, streamlined digital application process, and excellent customer service
Northwestern Mutual:
Strong dividend history and financial ratings
New York Life:
Excellent financial strength and dividend performance
MassMutual:
Competitive rates and strong cash value growth
Guardian Life:
Good customer service and flexible policy options
Penn Mutual:
Competitive premiums in many states
What Factors Affect Whole Life Insurance Rates?
- Age – Younger applicants receive significantly lower rates
- Health Status – Medical exams and health history impact pricing heavily
- State Regulations – Some states have stricter insurance regulations
- Gender – Women typically pay slightly less due to longer life expectancy
- Death Benefit Amount – Larger policies may qualify for preferred pricing
- Smoking Status – Non-smokers receive substantially lower rates
- Insurance Company – Each insurer has different underwriting standards and dividend history
What Is Whole Life Insurance?
Whole Life Insurance is a type of permanent life insurance that provides lifelong coverage with guaranteed cash value accumulation. Unlike term life insurance, whole life policies combine a death benefit with a savings component that grows at a guaranteed rate, making it both insurance and an investment vehicle.
What Does Whole Life Insurance Cover Or Provide?
Guaranteed Death Benefit:
Provides guaranteed tax-free death benefit to beneficiaries for life, as long as premiums are paid.
Guaranteed Cash Value Growth:
Builds cash value at a guaranteed rate, providing a conservative savings component that you can borrow against or withdraw.
Fixed Premiums:
Level premiums that never increase, providing predictable costs throughout your lifetime.
Tax Advantages:
- Tax-deferred cash value growth
- Tax-free death benefits to beneficiaries
- Tax-free loans against cash value (up to basis)
- Potential dividends (on participating policies)
What Whole Life Insurance Does NOT Cover Or Provide
- High investment returns – Cash value grows conservatively at guaranteed rates
- Premium flexibility – Premiums are fixed and must be paid as scheduled
- Immediate high cash values – Cash value builds slowly in early years
- Investment control – You cannot direct how cash value is invested
Whole Life vs. Other Investment Options
| WHOLE LIFE INSURANCE | TRADITIONAL INVESTMENTS |
| Guaranteed cash value growth | Market risk with potential for higher returns |
| Tax-deferred growth with life insurance | Taxable investment gains |
| Conservative, stable returns | Potential for higher volatility and returns |
| Limited liquidity in early years | Generally more liquid |
Who Are the Best Whole Life Insurance Companies?
Choosing the right insurance company is crucial for getting the best coverage at competitive rates. Here are some of the top companies offering whole life insurance:
Ethos
Ethos is our primary recommendation for whole life insurance. They specialize in modern, tech-driven life insurance solutions with competitive rates across all states. Their streamlined digital application process, excellent customer service, and comprehensive whole life products make them the top choice for most applicants.
Northwestern Mutual
Northwestern Mutual is highly rated for whole life insurance, offering strong dividend history and excellent financial strength ratings. They provide comprehensive financial planning services alongside insurance.
New York Life
New York Life offers solid whole life products with competitive dividend rates and strong financial stability. They have a long history of paying dividends to policyholders.
MassMutual
MassMutual provides competitive whole life insurance with good cash value growth and flexible policy options, particularly strong in the Northeast.
Guardian Life
Offers competitive whole life policies with good customer service and flexible premium payment options across most states.
Penn Mutual
Provides competitive whole life policies with strong cash value accumulation and good customer service, particularly competitive in certain regions.
What Are the Different Types Of Whole Life Coverage Options?
There are different whole life policy structures available:
Traditional Whole Life
The standard whole life policy with level premiums, guaranteed cash value growth, and potential dividends.
Single Premium Whole Life
Pay one large premium upfront for immediate coverage and faster cash value accumulation.
Limited Payment Whole Life
Pay premiums for a limited time (10, 15, or 20 years) then the policy is paid up for life.
What Insurance Is Best For Different Needs?
The best whole life insurance depends on your specific financial goals:
Estate Planning:
Ethos or Northwestern Mutual: Strong death benefit guarantees for estate transfer
Cash Accumulation:
New York Life or MassMutual: Good dividend history and cash value growth
Budget-Conscious Buyers:
Ethos or Penn Mutual: Competitive rates with solid guarantees
Comprehensive Financial Planning:
Northwestern Mutual or Guardian: Full-service financial planning with insurance
What To Look For In A Whole Life Provider
- Financial Strength Ratings: Look for A.M. Best ratings of A+ or higher
- Dividend History: Consistent dividend payments indicate financial stability
- Competitive Premiums: Compare rates across multiple insurers
- Policy Flexibility: Options for premium payments and policy modifications
- Customer Service: Strong claims payment history and customer support
- Cash Value Growth: Competitive guaranteed and projected returns
Is Whole Life Insurance Worth It?
Whether whole life insurance is worth it depends on your specific financial situation:
Whole Life May Be Right If You:
- Need permanent life insurance coverage
- Want guaranteed cash value growth
- Prefer conservative, predictable investments
- Have maximized other tax-advantaged accounts
- Need life insurance for estate planning
- Want stable, level premiums
Consider Alternatives If You:
- Only need temporary coverage (consider term life)
- Want higher potential returns (consider investing the difference)
- Have limited premium budget
- Prefer more investment control
Taking Action
Now that you have a better understanding of whole life insurance rates and coverage options, it’s time to take action. Protecting your family’s financial future is crucial, and finding the right whole life policy can provide both death benefit protection and guaranteed cash value growth. Compare quotes from multiple insurers to find the best rates for your situation.
Frequently Asked Questions
Why is Whole Life Insurance more expensive than term life?
Whole life insurance is more expensive because it combines life insurance with a guaranteed savings component. The policy builds cash value over time and provides permanent coverage, unlike term life which is temporary coverage only.
Who gives the best Whole Life Insurance rates?
Several companies offer competitive whole life rates, including Ethos, Northwestern Mutual, New York Life, and MassMutual. Each company has different strengths, so it’s important to compare quotes and policy features to find the best fit for your needs.
How much is Whole Life Insurance in the US?
The cost of whole life insurance varies widely based on age, health, location, and coverage amount. On average, a healthy 35-year-old might pay $262 per month for a $500,000 whole life policy. It’s important to get quotes from multiple insurers to find the best rate for your specific situation.