Life insurance rates increase 1% in February
Life insurance rates increased in February according to the Policygenius Life Insurance Price Index (PLIPI). While rates had remained steady for the past six months, the cost of life insurance went up 1% between January and February 2023, an average increase of $1 in monthly premiums.
Some age groups tracked by the PLIPI saw larger rate increases. Smoking 25-year-olds saw an average increase of 3.6%, or $2.08, in monthly rates, while smoking 55-year-olds saw an average increase in rates of 3.4%, or $12, in monthly rates.
Despite these increases, rates are only 1.09% higher than they were during the same period last year, keeping the price of life insurance competitive and well below inflation.
U.S. monthly averages as of February 1, 2023
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 | $250,000 coverage amount | $500,000 coverage amount | $1,000,000 coverage amount |
|---|---|---|---|---|
25 years old | Female | $14.36 | $20.98 | $32.54 |
Male | $17.23 | $27.06 | $43.74 | |
35 years old | Female | $16.68 | $25.73 | $42.03 |
Male | $18.84 | $30.74 | $51.08 | |
45 years old | Female | $28.84 | $48.35 | $86.38 |
Male | $35.78 | $61.42 | $112.55 | |
55 years old | Female | $61.73 | $111.05 | $206.74 |
Male | $84.44 | $153.49 | $281.31 |
U.S. monthly averages as of February 1, 2023
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 | $250,000 coverage amount | $500,000 coverage amount | $1,000,000 coverage amount |
|---|---|---|---|---|
25 years old | Female | $35.35 | $59.00 | $104.83 |
Male | $43.68 | $74.65 | $132.85 | |
35 years old | Female | $45.00 | $79.28 | $139.24 |
Male | $54.24 | $95.36 | $174.38 | |
45 years old | Female | $91.09 | $167.33 | $309.33 |
Male | $121.44 | $225.86 | $425.53 | |
55 years old | Female | $202.75 | $377.26 | $698.13 |
Male | $288.03 | $532.66 | $1,009.49 |
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 transforms the insurance journey for today’s consumer, providing a one-stop platform where customers can compare options from top insurance carriers, get unbiased expert advice, buy policies, and manage their insurance portfolio, in one seamless, integrated experience. Our proprietary technology platform integrates with the leading life, disability, and home and auto insurance carriers and delivers an exceptional digital experience for both consumers and insurance carriers. Since 2014, our content, digital tools, and experts have served as a resource for millions of people on their insurance journey, and we have sold more than $170 billion in coverage.
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Methodology: The prices displayed above are based on internal actuarial rate tables for nine life insurance carriers that offer policies through the Policygenius marketplace (AIG, Banner Life, Brighthouse, Lincoln Financial, Mutual of Omaha, Pacific Life, Protective, Prudential, 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 February 1, 2023. Monthly averages are based on nine products available through Policygenius for the indicated profile; rates for those products may vary by state, and not all nine 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.
