Published September 3, 2020
The Policygenius Life Insurance Price Index uses real-time rate data from leading life insurance companies to determine pricing trends. It’s designed to help the industry gauge market conditions and consumers get life insurance right.
For more on our methodology, see below.
While the coronavirus pandemic continued to dramatically impact countless businesses and institutions, life insurance prices remained relatively stable between Q3 and Q2 of 2020. Pricing trends over the last six months show minor fluctuations for young, healthy applicants. The average monthly premiums for non-smokers under 55, for instance, ranged anywhere from 21 cents less to 23 cents more in September versus April.
Life insurance prices did increase slightly for older, less healthy applicants. The average monthly premium for smokers rose between 9 cents and $4.06 in September, compared to April, with older, male applicants in that demographic seeing the largest uptick. The increases are likely related to the higher COVID-19 fatality rates associated with seniors and people with lung issues.
Holistically, however, COVID hasn’t had a significant impact on life insurance prices and most applicants can find an affordable policy.
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.
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.
The prices displayed above are based on internal actuarial rate tables for eleven 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 September 1, 2020. 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.
Life insurance prices are primarily based on life expectancy; taking into account an applicant’s age, health, hobbies, and medical history. The riskier you are to insure or the shorter your life expectancy, the higher your rates will be.
Prices are also affected by the length of a policy and the amount of coverage someone is looking to purchase. A longer policy term or higher coverage amount might increase monthly or annual premiums. Policygenius generally recommends people buy life insurance ten to 15 times their individual income with a term long enough to get them to retirement age. Since there are a lot of variables involved, we specialize in helping consumers get the right policy to fit their individual needs.
Policygenius is the nation’s leading online insurance marketplace, with headquarters in New York City and Durham, North Carolina. We’ve helped more than 30 million people shop for all types of insurance like they shop for everything else — online — and have placed over $60 billion in coverage. At Policygenius, shoppers can compare life insurance companies side-by-side in one place. We provide free quotes from the nation’s top life insurers. And, once someone formally submits an application, our licensed experts walk them through every step of the process.
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Yes, we have to include some legalese down here. Policygenius Inc. (DBA Policygenius Insurance Services in California) (“Policygenius”), a Delaware corporation, is a licensed independent insurance broker. Policygenius does not underwrite any insurance policy described on this website. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application.
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