Reflecting on a year's worth of life insurance rates
Over the past year, life insurance rates have fluctuated in response to the coronavirus pandemic. However, there haven’t been major pricing changes for healthy demographics. In fact, many nonsmokers even saw a nominal decrease in average pricing from April 2020 to April 2021.
But older smokers, who saw the biggest pricing increases throughout the year, are paying slightly more than they did last year. For example, 55-year-old male smokers are paying nearly 4% more in April 2021 for $250,000 in life insurance coverage than they were in April 2020. This group saw the biggest increase in life insurance premiums since the beginning of the pandemic. However, these pricing changes aren’t substantial enough to warrant concerns for applicants.
Pricing trends over the past year indicate that life insurance rates have been minimally affected by the ongoing pandemic and most people can still find affordable coverage.
U.S. monthly averages as of April 1, 2021
Term life insurance for non-smokers
The chart below shows average monthly premium prices for a 20-year term life insurance policy for non-smokers in a Preferred health classification; quotes are based on the Policygenius Life Insurance Price Index Methodology.
Age / Sex | $250K coverage amount | $500K coverage amount | $1M coverage amount |
|---|---|---|---|
25 year old female | $14.24 | $21.26 | $34.50 |
25 year old male | $17.15 | $27.10 | $45.21 |
35 year old female | $16.53 | $25.53 | $42.67 |
35 year old male | $18.79 | $30.41 | $51.85 |
45 year old female | $28.43 | $47.62 | $86.53 |
45 year old male | $35.39 | $60.92 | $113.64 |
55 year old female | $60.29 | $108.05 | $206.88 |
55 year old male | $84.14 | $151.80 | $287.51 |
U.S. monthly averages as of April 1, 2021
Term life insurance for smokers
The chart below shows average monthly premium prices for a 20-year term life insurance policy for smokers in a Preferred health classification; quotes are based on the Policygenius Life Insurance Price Index Methodology.
Age / Sex | $250K coverage amount | $500K coverage amount | $1M coverage amount |
|---|---|---|---|
25 year old female | $35.43 | $59.97 | $111.21 |
25 year old male | $43.82 | $75.09 | $139.49 |
35 year old female | $45.28 | $79.77 | $146.53 |
35 year old male | $54.00 | $95.10 | $179.82 |
45 year old female | $91.24 | $167.18 | $319.91 |
45 year old male | $123.14 | $229.26 | $441.04 |
55 year old female | $201.32 | $373.51 | $720.99 |
55 year old male | $292.14 | $538.07 | $1043.14 |
Methodology: The prices displayed above are based on internal actuarial rate tables for 11 life insurance carriers that offer policies through the Policygenius marketplace (AIG, Banner Life, Brighthouse, Lincoln Financial, Mutual of Omaha, Pacific Life, Principal, Protective, Prudential, SBLI and TransAmerica). The prices represent the average monthly life insurance premium for each sample customer profile (age, gender) and policy type (term, coverage amount) as of April 1, 2021. Monthly averages are based on 11 products available through Policygenius for the indicated profile; rates for those products may vary by state, and not all 11 products are available in all states. Individual rates may vary, depending on age, gender, state, health profile, and other eligibility criteria. The index is updated each month.
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