Life insurance rates increase 1.44% in June
Life insurance prices increased in June for the first time since February, according to the Policygenius Life Insurance Price Index (PLIPI). Rates went up by 1.44% this month — an average monthly increase of 66 cents.
While many age groups tracked by the PLIPI saw small to negligible increases, young consumers applying for $1 million life insurance policies saw the largest cost bumps. Male non-smoking applicants age 25 to 45 saw an average increase of 5.7% — or $4 per month. Female non-smoking applicants in the same age group saw the cost of life insurance go up by 4% — an average increase of $2.30 per month.
This is the first time rates have increased since February, when the cost of life insurance went up by 1%. Compared to the same period last year, the cost of life insurance has gone up by 2.22% — an average increase of $1.52 per month.
Despite these recent increases, life insurance rates have remained stable for most of the year and well below the rate of inflation, giving potential buyers the opportunity to lock in affordable rates, especially when young and in good health.
U.S. monthly averages as of June 1, 2023
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 | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
---|---|---|---|---|
25 years old | Female | $14.60 | $21.52 | $33.77 |
Male | $17.97 | $28.42 | $46.58 | |
35 years old | Female | $16.99 | $26.51 | $43.70 |
Male | $19.62 | $32.25 | $54.24 | |
45 years old | Female | $29.75 | $50.28 | $90.30 |
Male | $37.19 | $64.28 | $118.32 | |
55 years old | Female | $61.82 | $111.27 | $206.54 |
Male | $84.53 | $153.64 | $280.95 |
U.S. monthly averages as of June 1, 2023
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 | Gender | $250,000 coverage amount | $500,000 coverage amount | $1 million coverage amount |
---|---|---|---|---|
25 years old | Female | $35.43 | $59.10 | $104.51 |
Male | $43.62 | $74.65 | $132.31 | |
35 years old | Female | $45.12 | $79.58 | $139.06 |
Male | $54.31 | $95.62 | $174.14 | |
45 years old | Female | $91.25 | $167.70 | $308.93 |
Male | $121.61 | $226.26 | $425.26 | |
55 years old | Female | $203.32 | $378.68 | $697.18 |
Male | $288.03 | $534.00 | $1,006.82 |
Methodology: The prices displayed above are based on internal actuarial rate tables for nine life insurance carriers that offer policies through the Policygenius marketplace (Banner Life, Brighthouse Financial, Corebridge Financial, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, 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 June 1, 2023. Monthly averages are based on nine products available through Policygenius for the indicated profile; rates for those products may vary by state, and not all nine 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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