Term Life Insurance Rates by Major US City
Lowest Average Annual Premiums in Columbus, Detroit and Phoenix
Oct 31, 2009
Can Americans save on their life insurance premiums by moving from one major US city to one in another state?
Based on this brief study of premium quotes for a male non-smoker age 42, the general answer is that the maximum difference in average term life premiums from one city to the next is roughly 13.5%.
For example, a 42-year-old man relocating from a Columbus, Ohio address with zip code 43215 to a new home in New York City with zip code 10001 might expect to pay an average yearly premium that is $39.61 more expensive for each $100,000 of term life insurance.
Rates below were calculated based on 20-year term life premium data available on Compulife’s Term4Sale website.
Major US Cities with Lowest Average Term Life Rates
According to United States Census Bureau statistics, Columbus has a population of 754,885 and is America’s 16th largest city. However, population size is not necessarily a decisive factor in determining the lowest term life rates for this example. Phoenix is the 5th biggest US city with 1,567,924 citizens yet offered an average premium rate comparable to the average quote for the much smaller Atlanta with 537,958 residents.
The lowest rate for all cities below was $232 per $100,000 of term life insurance, underwritten by the Savings Bank Life Company of Massachusetts.
The average premium for all 25 cities in this review was $300.70 for a $100,000 term life policy.
- Columbus, Ohio (zip code 43215) … average $292.41 per year (for $100,000 of insurance)
- Detroit, Michigan (48227) … $292.55
- Phoenix, Arizona (85013) … $293.31
- Atlanta, Georgia (30312) … $293.85
- Memphis, Tennessee (38103) … $293.85
- Denver, Colorado (80202) … $294.33
- Chicago, Illinois (60610) … $294.71
- Indianapolis, Indiana (46224) … $297.12
- Jacksonville, Florida (32207) … $294.27
- Kansas City, Kansas (64105) … $297.43
- Los Angeles, California (90013) … $297.43
- Louisville, Kentucky (40202) … $297.55
- Oklahoma City, Oklahoma (73102) … $297.69
- Houston, Texas (75207) … $298.51
- Philadelphia, Pennsylvania (19107) … $299.33
- Albuquerque, New Mexico (87102) … $299.89
- Milwaukee, Wisconsin (53202) … $300.57.
Major US Cities with Highest Average Term Life Premiums
The following 8 cities had above-average premiums. The maximum individual rate was $446 per year for a $100,000 term life policy from Pruco Life insurance Company of New Jersey for an applicant living in New York City. For Seattle residents, United Home Life had the second-highest maximum premium of $422 followed by Sagicor Life’s $394 rate for Bostonians.
- Charlotte, North Carolina (zip code 28202) … $301.79 average $292.41 per year (for $100,000 of insurance)
- Las Vegas, Nevada (89169) … $302.63
- Washington, District of Columbia (20005) … $303.39
- Baltimore, Maryland (21297) … $306.47
- Portland, Oregon (97205) … $308.31
- Boston, Massachusetts (02205) … $311.17
- Seattle, Washington (98104) … $316.91
- New York City, New York (10001) … $332.02.
Shopping for Lowest Term Life Premiums by US City
To summarize the findings of this short study, average rates in Columbus were 13.5% less expensive than average premiums per $100,000 of term life insurance for New York residents.
Among the 52 life insurance companies that provided quotes for a 42-year-old non-smoker male living in Columbus, the highest term life rate was $350 per $100,000. The lowest premium quote for Columbus was $232, which is 50.9% less expensive for residents of the same city.
In New York City, the difference among life insurance companies quoting on the sample 20-year-term life insurance policy was even more dramatic. The highest rate of $446 cost 75.6% more than the $254 rate per $100,000 of insurance for male applicants living in the Big Apple.
Premium rates for the same city varied more by insurance company provider than the more moderate differences for the 25 US cities in this review.
Therefore, regardless if they live in Detroit or Las Vegas, consumers should comparison shop as many premium quotes as possible before deciding on the best term life insurance policy for their needs.
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