There were no significant changes in life insurance prices for healthy applicants across core demographics from October to November. Sixty-three percent of non-smokers saw no fluctuations in pricing at all, according to Policygenius data.
Prices also plateaued for older, less healthy applicants who saw an uptick of $16.62 in monthly life insurance premiums in October 2020 as compared to April 2020. Male smokers 55 and older, for instance, only saw an increase of eight cents in monthly life insurance prices from October to November, compared to $12.56 per month from September to October.
Though subject to change, the plateau in pricing likely reflects insurers’ beliefs that current prices adequately address the increased health risks associated with COVID-19.
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.
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