$20000 Of Life Insurance: How Much Does It Cost?

A $20,000 life insurance plan is a budget-friendly option for coverage and for easing the burden of financial obligations when you pass. These affordable policies ensure your family can cover basic funeral and burial expenses without strain. 

With the lower premiums that come with smaller policies, a $20,000 plan suits those watching costs or with medical considerations. This guide will let you in on the following:

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Types Of $20,000 Life Policies 

Here are two main types of $20k policies:

  • Simplified Issue Whole Life Insurance (SIWL)
  • Guaranteed Issue Whole Life Insurance (GIWL)

Simplified Issue Whole Life Insurance

Simplified issue whole life Insurance provides lifelong protection with no exam.

Pros: No medical exam required, fixed premiums, and cash value (CV) growth over time.

Cons:  Too little coverage for income replacement.

Guaranteed Issue Whole Life Insurance

GIWL ensures you receive coverage, no matter your health history. Neither tests nor lengthy applications stand in the way of securing the policy.

Pros: Available to all who qualify by age and residence, no medical underwriting.

Cons: Higher rates and a two-year waiting period.

How Do Life Insurance Companies Decide Your Cost?

Life insurers aim to avoid prematurely paying out claims to stay profitable. If your risk profile hints at an early payout, expect higher rates.

Factors Affecting Life Insurance Costs

Factors that impact where you fall include:

FactorImpact on Cost
AgeYounger applicants have lower costs 
HealthBetter health means a greater life expectancy and reduced rates
GenderOn average, women live longer, so they have lower rates
LifestyleHabits like smoking significantly increase premiums
OccupationHigh-risk jobs mean higher costs due to accident potential
Policy TypePermanent policies are more expensive than temporary (term) policies

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How Much Does A $20,000 Policy Cost?

A $20,000 policy strikes a balance—funding final expenses and debts with costs most household budgets can accommodate. How much does a 20k insurance policy cost?

As you will see in this section, a $20,000 plan is surprisingly affordable.

The tables below show the rates for the products we discussed above.

The Cost of a $20,000 Whole Life Insurance Policy

One option for $20,000 in coverage is simplified issue whole life insurance. As the name implies, this variety offers simplified underwriting without medical exams.

There is a clear relationship between age and the cost of whole life policies. Generally speaking, younger applicants will see lower premiums since insurance companies take in payments over more years.

MenMale (Smoker)
Age 45$48.48$64.81
Age 46$51.65$69.81
Age 47$54.81$74.80
Age 48$57.98$79.80
Age 49$61.14$84.80
Age 50$64.14$89.96
Age 51$67.14$91.96
Age 52$70.14$93.96
Age 53$73.14$95.96
Age 54$76.14$97.96
Age 55$79.30$99.96
Age 56$82.80$105.29
Age 57$86.30$110.62
Age 58$89.80$115.95
Age 59$93.30$121.28
Age 60$96.96$126.62
Age 61$99.29$132.28
Age 62$101.63$137.94
Age 63$103.96$143.61
Age 64$106.29$149.27
Age 65$108.29$154.94
Age 66$113.95$165.93
Age 67$119.62$176.93
Age 68$125.28$187.92
Age 69$130.95$198.92
Age 70$136.61$209.92
Age 71$147.61$227.58
Age 72$158.60$245.24
Age 73$169.60$262.89
Age 74$180.59$280.55
Age 75$191.59$298.21
Age 76$206.25$325.87
Age 77$220.91$353.53
Age 78$235.57$381.18
Age 79$250.23$408.84
Age 80$264.89$436.49
Age 81$286.22$477.14
Age 82$307.54$517.79
Age 83$328.87$558.44
Age 84$350.19$599.09
Age 85$371.52$639.74
Age 86$448.15$751.70
Age 87$524.79$863.65
Age 88$601.43$975.61
Age 89$678.06$1,087.56

For male non-smokers seeking $20,000 in whole life coverage, premium increases are gradual from age 45, ranging from $48 per month. However, rates expand more sharply past age 75. Premiums rise from $191 at 75 to $678 at 89—over three times higher, reflecting greater risks.

Male smokers pay more for the same $20,000 policy. Rates start around $64/month at age 45 but climb steeply compared to non-smokers. By 89 years old, premiums reach $1087 per month. The increase is especially pronounced between ages 85-89 when costs jump from $371 to $1087 monthly.

The table shows how tobacco usage impacts life expectancy and insurance costs. For the same coverage, non-smoking policies prove significantly cheaper in the long term.

WomenFemale (Smoker)
Age 45$43.65$62.97
Age 46$44.98$65.81
Age 47$46.31$68.64
Age 48$47.65$71.47
Age 49$48.98$74.30
Age 50$49.98$77.47
Age 51$52.15$78.14
Age 52$54.31$78.80
Age 53$56.48$79.47
Age 54$58.64$80.13
Age 55$61.14$80.97
Age 56$64.14$84.13
Age 57$67.14$87.30
Age 58$70.14$90.46
Age 59$73.14$93.63
Age 60$75.80$96.63
Age 61$78.30$100.29
Age 62$80.80$103.96
Age 63$83.30$107.62
Age 64$85.80$111.29
Age 65$88.30$114.95
Age 66$92.30$121.62
Age 67$96.29$128.28
Age 68$100.29$134.95
Age 69$104.29$141.61
Age 70$108.29$148.27
Age 71$114.95$158.27
Age 72$121.62$168.27
Age 73$128.28$178.26
Age 74$134.95$188.26
Age 75$141.61$198.25
Age 76$151.61$218.58
Age 77$161.60$238.90
Age 78$171.60$259.23
Age 79$181.59$279.55
Age 80$191.59$299.88
Age 81$205.25$322.54
Age 82$218.91$345.20
Age 83$232.57$367.85
Age 84$246.23$390.51
Age 85$259.90$413.17
Age 86$325.20$492.14
Age 87$390.51$571.10
Age 88$455.82$650.07
Age 89$521.12$729.04

For $20,000 in coverage, female non-smoking rates begin at $43/month at age 45, gradually rising to $108 by 70 years old. However, premiums increase most sharply past age 70. Rates reach $521 monthly by 89 years old—over four times higher than at 70, reflecting risk.

For the same $20K policy, female smokers’ premiums start at $62/month at age 45. Rates climb steadily but more slowly than their male counterparts. By age 89, monthly costs are $729.

Best Companies For A $20,000Life Insurance Policy

Below are GetSure’s picks for the best $20,000 life insurance policy.

Simplified Issue Whole Life Insurance: Mutual of Omaha 

Mutual of Omaha offers simplified issue whole life insurance through their Living Promise Whole Life Insurance. This includes both their Level Benefit Plan and Graded Benefit Plan. These policies suit those seeking affordable $2,000-$50,000 permanent life insurance coverage.


  • No medical exam required
  • Flat rates
  • Death benefits are income-tax-free for beneficiaries
  • Cash value grows over time and can be used for any purpose
  • Accelerated benefits if terminally ill or in a nursing home

Company Highlights:

  • Part of Mutual of Omaha, a major insurer established over 75+ years
  • Additional accidental death coverage is available

Guaranteed Issue Whole Life Insurance: Gerber Life

Gerber Life offers guaranteed-issue whole life insurance through its Guaranteed Life policy. This policy provides permanent coverage of up to $25,000 without medical underwriting.  


  • Guaranteed acceptance from ages 50-80
  • Premiums are fixed and will never increase 
  • Beneficiaries do not have to pay tax on the death benefit
  • Cash value earns interest at a guaranteed 4% rate, accruing tax-deferred
  • Policy loans can be taken from accumulated cash value without a credit check

Company Highlights:

  • Provider of children’s and adult’s life insurance for over 50 years
  • Has an A (Excellent) financial strength rating from A.M. Best

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