A report released by the Centers for Disease Control and and Prevention (CDC) this month found that the average life expectancy in the U.S. fell by a year and a half in 2020, though Hispanic and Black Americans saw an even greater decline. The drop in life expectancy is the biggest seen since World War II and is predominantly due to the COVID-19 pandemic.
While insurers account for life expectancy when determining how much consumers pay, the new federal data has not impacted life insurance rates as of yet. In fact, life insurance prices remained largely the same from July to August 2021, with a negligible decrease for non-smokers of every demographic.
In the interest of remaining competitive, insurers are not raising prices at this time. For consumers, now is a good time to get the coverage they need at an affordable price.
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.