Published July 1, 2021
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.
A new report from AAA estimates that about 47 million Americans traveled over the Fourth of July weekend, a 40% increase from last year. While many vacationers are thinking about outdoor activities and ocean adventures, they may not be thinking about how their activities can impact their life insurance rates.
Applicants who frequently participate in dangerous activities, like scuba diving, can expect to pay more to offset the risk of an accident. Even in 2020, when stricter COVID-19 restrictions were in place, 2.59 million people scuba dived across the U.S. A majority of these scuba divers, about 73%, only dove recreationally — or less than seven times a year. Most recreational scuba divers, such as those who only scuba dive on vacation, pay the same rates as their non-scuba diving counterparts. But technical scuba divers, who dive at slightly greater depths and frequency, end up paying up to 78% more on average monthly life insurance premiums.
Some insurers offer better prices to scuba divers than others, depending on factors like how often, how deep, where, and why you dive. Working with a broker that compares multiple insurers is the best way to get the most competitive rate.
The chart below shows average monthly premium prices for a 20-year term life insurance policy for individuals with a Standard health classification who scuba dive up to 120 feet below surface level, at least 2-3 times a month, and in open water. Sample applicant never dives alone and is PADI scuba certified. Sample applicant has 10 years of scuba diving experience. Quotes are based on the Policygenius Life Insurance Price Index Methodology.
There were no significant changes to life insurance prices from June 2021 to July 2021, continuing the trend of stability. The biggest pricing fluctuation was an insubstantial .7% increase in average monthly premiums, seen by 55-year-old male nonsmokers purchasing a $250,000 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 July 1, 2021. 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 $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.