Two years of stable life insurance rates, despite historic inflation and COVID-19
Life insurance prices in May 2022 remained mostly unchanged compared to April, with minor decreases in rates across the board. A 55-year-old male smoker buying a $1,000,000 policy saw the biggest improvement, a $2.92 monthly saving compared to April.
Despite unpredictable COVID-19 developments over the last two years and rising inflation in 2021, life insurance rates have remained extremely stable.
While there have been occasional month-to-month fluctuations, overall changes have been minimal. Rates went up by just 0.03% on average in the months between April 2020 and April 2021. Rates then went down by 0.10% from April 2021 to April 2022.
Smokers age 45 and 55 saw the biggest rate increases overall in 2020 to 2021 — their rates were an average of $7.70 per month higher in April 2021 than in April 2020. But rates for this same group were lower in April 2022 compared to April 2021, by an average of $9.49 per month.
The stability in rates over the last two years could be explained by the fact that life insurance carriers have historically taken the long view on factors that could impact rates, like COVID-19 infections, and have already built other health risks that could worsen COVID-19 symptoms into policy pricing. Combined with strong interest from new customers, it appears that consumers can count on life insurance rates to stay predictable, even as inflation takes the cost of other goods up by an average of 8.5% — highs not seen since 1981.
U.S. monthly averages as of May 1, 2022
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 | $14.21 | $21.10 | $33.54 |
25 year old male | $17.18 | $26.97 | $44.79 |
35 year old female | $16.55 | $25.53 | $42.76 |
35 year old male | $18.85 | $30.32 | $51.87 |
45 year old female | $28.87 | $47.94 | $86.87 |
45 year old male | $35.55 | $60.80 | $112.94 |
55 year old female | $61.56 | $109.12 | $208.38 |
55 year old male | $84.92 | $151.65 | $284.76 |
U.S. monthly averages as of May 1, 2022
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 | $34.07 | $57.24 | $105.66 |
25 year old male | $42.29 | $72.27 | $134.14 |
35 year old female | $43.89 | $76.96 | $141.10 |
35 year old male | $52.70 | $92.53 | $174.86 |
45 year old female | $89.07 | $162.66 | $311.52 |
45 year old male | $120.39 | $223.36 | $429.41 |
55 year old female | $196.09 | $362.38 | $702.40 |
55 year old male | $281.71 | $518.83 | $1,016.10 |
Methodology: The prices displayed above are based on internal actuarial rate tables for 10 life insurance carriers that offer policies through the Policygenius marketplace (AIG, Banner Life, Brighthouse, Lincoln Financial, Mutual of Omaha, Pacific Life, 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 May 1, 2022. Monthly averages are based on 10 products available through Policygenius for the indicated profile; rates for those products may vary by state, and not all 10 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.
Image: d3sign / Getty