The short answer
Insurers price term life as a rate for every $1,000 of cover, set by your age, sex, health class and term length, plus a flat yearly policy fee. The rate per $1,000 steps down when the face amount crosses a band edge. Banner Life's OPTerm spec sheet for individuals (form CN04022026-2, opened November 11, 2026) lists 10 bands from $100,000 to over $10 million and a $90 annual policy fee.[1]
- Banner Life bands
- 10
- William Penn bands, New York
- 7
- Banner policy fee
- $90 a policy, yearly
- Stated by
- Banner OPTerm spec sheet for individuals
On this page
What goes into a term premium
Four parts make up nearly every term quote. Three come from the insurer's rate book and one comes from how you choose to pay.
- The rate per $1,000. A number looked up from your insurance age, sex, health class, tobacco use and term length. This is where most of the price lives.
- The band. The same person gets a lower rate per $1,000 once the face amount reaches the next band edge. Bigger policies are cheaper per dollar of cover.
- The policy fee. A flat charge on each policy, the same whether the face is $100,000 or $1 million. Banner charges $90 on its own policies and $80 on William Penn policies sold in New York.[1]
- The payment mode. Paying monthly multiplies the annual premium by a modal factor. Banner's sheet gives 0.085 for monthly bank draft, so twelve payments add up to 1.02 times the annual premium.[1]
Health class changes the rate more than anything else after age. Banner's sheet adds one detail most price pages skip. If you are table rated for a medical condition, the extra charge is built on top of its Standard Plus rate, not its Standard rate.[1] Health classes have their own guide at rate classes, and the monthly factor gets a full calculator at monthly versus annual premium.
The band edges, from a real spec sheet
Most explanations of banding stay vague. One widely read broker article says insurers "typically have three or four rate bands".[2] Banner's consumer sheet prints ten, and a second schedule of seven for its New York company, William Penn. Two companies in one family, two different sets of edges.
| Band | Banner Life (49 states and DC) | William Penn (New York only) |
|---|---|---|
| 1 | $100,000 to $249,999 | $100,000 to $249,999 |
| 2 | $250,000 to $499,999 | $250,000 to $499,999 |
| 3 | $500,000 to $749,999 | $500,000 to $999,999 |
| 4 | $750,000 to $999,999 | $1,000,000 to $1,499,999 |
| 5 | $1,000,000 to $1,499,999 | $1,500,000 to $2,499,999 |
| 6 | $1,500,000 to $1,999,999 | $2,500,000 to $5,000,000 |
| 7 | $2,000,000 to $2,999,999 | $5,000,001 and over |
| 8 | $3,000,000 to $4,999,999 | None |
| 9 | $5,000,000 to $10,000,000 | None |
| 10 | $10,000,001 and over | None |
Checked November 11, 2026. Copied from Banner Life's OPTerm product information for individuals, form CN04022026-2.[1] Other insurers use other edges and most do not publish them.
- Banner Life edges at $250,000, $500,000, $750,000, $1 million, $1.5 million, $2 million, $3 million, $5 million and just over $10 million
- William Penn edges at $250,000, $500,000, $1 million, $1.5 million, $2.5 million and just over $5 million
- Banner's $90 fee spread over the face, 90 cents per $1,000 at $100,000, 36 cents at $250,000, 18 cents at $500,000 and 9 cents at $1 million
Why a bigger policy can cost about the same
Because the rate falls at each edge, a policy just past an edge can cost little more than one just below it. Two public examples show the size of the effect.
Sample prices, checked November 11, 2026
- Woman 40, $500,000 term, insure.com example
- $386 a year
- Same woman, $1,000,000 term
- $690 a year
- QuickQuote example, $200,000
- About $195 a year
- QuickQuote example, $250,000
- About $198.50 a year
insure.com, page updated August 27, 2026, says $1 million "runs her $690 rather than $772", meaning double the cover cost 79 percent more, not 100 percent.[3] QuickQuote's figures come from a page last modified September 17, 2024.[2] Neither page names the insurer, term length or health class, so read them as shapes, not prices. Assumes only the age, sex and amounts shown. Not a quote. Your price depends on your health and the insurer.
Example. The round-up check at Banner's $250,000 edge
- Face you planned
- $240,000
- Band at Banner
- Band 1
- Next edge
- $250,000, band 2
- Extra cover to cross the edge
- $10,000
Band edges from Banner's spec sheet for individuals, checked November 11, 2026. When a planned amount sits a few percent under an edge, ask for a quote at both amounts. In QuickQuote's example the extra $50,000 cost about $3.50 a year.
The fee per $1,000, and why small policies cost more per dollar
The policy fee is a flat amount, so its weight depends on the face. On a $100,000 Banner policy the $90 fee is 90 cents for each $1,000 of cover. On $1 million it is 9 cents. Guardian puts the general rule simply, "the more coverage you get, the less you pay per $1,000 in coverage".[4]
| Face amount | Banner band | $90 fee per $1,000 | William Penn $80 fee per $1,000 |
|---|---|---|---|
| $100,000 | 1 | $0.90 | $0.80 |
| $250,000 | 2 | $0.36 | $0.32 |
| $500,000 | 3 | $0.18 | $0.16 |
| $1,000,000 | 5 | $0.09 | $0.08 |
| $2,000,000 | 7 | $0.045 | $0.04 |
Checked November 11, 2026. Fee divided by the face in thousands. Fees and bands from Banner's spec sheet for individuals.[1] The rate per $1,000 itself is not published there, so it is not shown.
Check your own amount
Type the face amount you have in mind. The check shows the band at Banner or William Penn, how far you are from the next edge and what the policy fee works out to per $1,000. The amount loaded on first view is an example. It gives no price, because Banner does not publish its rate per $1,000 to consumers.
What bands mean when you split cover
Bands and fees are the hidden cost of splitting cover into several policies. Take $500,000 as one Banner policy. It sits in band 3 and pays one $90 fee. Split it into two $250,000 policies and each lands in band 2, with a higher rate per $1,000, and you pay the fee twice.
That does not make one big policy always right. A ladder of policies drops cover as debts shrink, and that can save more than the band discount costs. The ladder planner shows both sides for your own numbers, and our quote page prices the amounts side by side.
More on how prices are built
- Insurance age, and saving age by backdatingInsurers price on an insurance age that can step up six months before your birthday. A backdated policy can keep the younger price, for a cost.Checked November 14, 2026
- Monthly vs annual premium, priced as a loanPaying monthly is a small loan from the insurer. Put in your two numbers and see the rate it charges.Checked November 13, 2026
- Rate classes, and how to move up oneThe class an underwriter gives you sets the price for the whole level period. Here is what separates the classes and when quitting tobacco changes yours.Checked November 13, 2026
Questions people ask
What is a rate band in life insurance?
A range of face amounts that share one rate per $1,000. When your face amount reaches the next band, the rate per $1,000 drops. Banner Life prints 10 bands, starting at $100,000, $250,000, $500,000 and $750,000, then $1 million and up.
What is a life insurance policy fee?
A flat yearly charge on each policy, added to the premium. Banner's spec sheet lists $90 for Banner Life policies and $80 for William Penn policies. Because it is flat, it matters most on small policies.
Is it worth rounding up to the next band?
Sometimes. If your amount is just below an edge, the larger amount can cost only a little more. Ask for quotes at both amounts and compare the yearly total, not the rate per $1,000.
Do all insurers use the same bands?
No. Even two companies in the Banner family use different edges, $500,000 to $749,999 for Banner's band 3 against $500,000 to $999,999 at William Penn. Most insurers do not publish their bands to consumers.
Last updated November 14, 2026. Found an error? Call (305) 699-5857 and it goes in the corrections log.
Sources (4)
- Banner Life, OPTerm Level Premium Plans product information for individuals, form CN04022026-2, no date shown. Opened November 11, 2026. bannerlife.com
- QuickQuote, Life Insurance Rate Bands, How They Can Save You Money, modified September 17, 2024. Opened November 10, 2026. quickquote.com
- insure.com, Term life insurance, updated August 27, 2026. Opened November 10, 2026. insure.com
- Guardian Life, How much does life insurance cost, no date shown. Opened November 10, 2026. guardianlife.com
