Life insurance premiums decrease for older applicants
While life insurance rates remained relatively stable for most applicants from February to March 2021, older smokers and non-smokers saw a surprising dip in premiums. The biggest decrease was seen by female smokers aged 55, with average monthly rates falling by $19.50 on a $1 million policy.
Older applicants and smokers have historically seen the biggest premium increases throughout the COVID-19 pandemic. This is the first time during the pandemic that older applicants are seeing significant pricing reductions that have generally been seen by younger and healthier applicants.
Comparison shopping is the best way to get competitive life insurance coverage for your personal history, as each insurer approaches each application differently. Because these prices reflect the averages for different demographics, some rates will be lower.
U.S. monthly averages as of March 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 | $14.12 | $21.08 | $34.30 |
25 year old male | $16.99 | $26.87 | $44.93 |
35 year old female | $16.36 | $25.23 | $42.31 |
35 year old male | $18.52 | $30.03 | $51.33 |
45 year old female | $28.18 | $47.24 | $85.84 |
45 year old male | $34.99 | $60.43 | $112.98 |
55 year old female | $59.68 | $107.34 | $205.22 |
55 year old male | $82.86 | $150.03 | $285.04 |
U.S. monthly averages as of March 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 | $35.40 | $59.96 | $111.18 |
25 year old male | $43.77 | $75.06 | $139.43 |
35 year old female | $45.26 | $79.76 | $146.49 |
35 year old male | $53.97 | $95.07 | $179.77 |
45 year old female | $91.18 | $167.14 | $319.83 |
45 year old male | $122.92 | $228.77 | $440.9 |
55 year old female | $201.25 | $373.45 | $720.86 |
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 March 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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