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.
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.
How our index works
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 10 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 $100 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.
Find your best life insurance prices today.