Direct answer: 2017 premium cost per $1,000
In 2017, the average cost of fringe benefit life insurance for employees ranged from $0.75 to $1.35 per $1,000 of coverage per month, depending on age, gender, health status, and plan type. Younger, healthy non‑smokers typically paid the low end of the range, while older or higher‑risk participants approached the upper limit. These rates reflect group pricing, which is generally lower than individual policies because insurers spread risk across the entire employee pool.
More from this site
Keep reading the latest coverage
Key factors that drive the premium
Four primary variables shape the per‑thousand cost in a fringe benefit program:
- Age bracket: Rates increase incrementally after each five‑year age band.
- Gender: Male members usually face slightly higher premiums due to statistical mortality differences.
- Health & smoking status: Non‑smokers and those with clean medical histories receive discounts.
- Plan design: Simple term coverage versus policies that include accidental death or disability riders can shift the price.
2017 premium table by age and gender
| Age | Male (per $1,000) | Female (per $1,000) |
|---|---|---|
| 20‑24 | $0.78 | $0.71 |
| 25‑29 | $0.85 | $0.77 |
| 30‑34 | $0.94 | $0.85 |
| 35‑39 | $1.04 | $0.94 |
| 40‑44 | $1.16 | $1.05 |
| 45‑49 | $1.30 | $1.18 |
| 50‑54 | $1.48 | $1.34 |
The table shows a steady climb as age advances, with a typical gender gap of roughly $0.09 to $0.14 per $1,000. Employers could use these figures to estimate total monthly cost by multiplying the per‑thousand rate by the desired coverage amount and the number of participants.
How employers calculate total expense
To determine the overall budget for a fringe benefit life‑insurance offering, follow these steps:
For example, a 35‑year‑old male receiving $25,000 of coverage would cost 25 × $1.04 = $26.00 per month. If a company has 40 employees in that bracket, the monthly expense would be $1,040.
Impact of plan riders and optional add‑ons
Many 2017 fringe benefit packages allowed employers to layer supplemental riders such as accidental death benefit (ADB) or waiver of premium. Adding an ADB rider typically added $0.10‑$0.25 per $1,000, while a waiver of premium could increase cost by $0.05‑$0.12 per $1,000. These add‑ons raise the overall premium but provide added protection that can be attractive to both employees and recruiters.
Why rates differ from individual policies
Group fringe benefit rates are lower because insurers pool risk across a large, relatively homogeneous employee base. Individual term policies, purchased outside an employer program, often start at $1.20‑$1.80 per $1,000 for a healthy 30‑year‑old, reflecting higher underwriting costs and lack of group discount.
Considerations for 2024 and beyond
Although the data presented is specific to 2017, the same variables continue to influence pricing. Modern carriers may adjust rates for longevity trends, medical inflation, and regulatory changes, but the age‑gender‑health framework remains consistent. Companies reviewing legacy plans should request updated tables from their carriers to ensure budgeting aligns with current market conditions.