Life insurance prices tick down for healthy applicants
Life insurance prices for healthy applicants decreased slightly from September to October 2020, with average monthly premiums dropping anywhere from one cent to 98 cents for non-smokers across core demographics. Minor fluctuations in monthly prices are common, as insurers often adjust their prices to stay competitive in the market.
Conversely, life insurance prices continue to climb for older, less healthy applicants. Male smokers aged 55 and older saw the biggest jump, with average monthly premiums for this demographic rising between $6.12 and $12.56, depending on their age. The increases likely remain related to the COVID-19 pandemic, as smokers and seniors are among the most at risk of death due to the virus.
Holistically, however, COVID has yet to have a significant impact on life insurance prices and most applicants can find an affordable policy.
U.S. monthly averages as of October 1, 2020
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 | $250K coverage amount | $500K coverage amount | $1M coverage amount |
|---|---|---|---|
25 year old female | $14.22 | $21.20 | $34.49 |
25 year old male | $17.08 | $27.01 | $45.17 |
35 year old female | $16.46 | $25.39 | $42.48 |
35 year old male | $18.67 | $30.23 | $51.55 |
45 year old female | $28.31 | $47.45 | $86.33 |
45 year old male | $35.26 | $60.76 | $113.36 |
55 year old female | $60.08 | $107.74 | $206.37 |
55 year old male | $83.54 | $150.93 | $286.53 |
U.S. monthly averages as of October 1, 2020
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 | $250K coverage amount | $500K coverage amount | $1M coverage amount |
|---|---|---|---|
25 year old female | $35.18 | $59.64 | $110.54 |
25 year old male | $43.40 | $74.40 | $138.64 |
35 year old female | $45.01 | $79.28 | $145.60 |
35 year old male | $53.53 | $94.55 | $178.74 |
45 year old female | $90.68 | $166.17 | $317.89 |
45 year old male | $122.20 | $227.42 | $438.26 |
55 year old female | $199.63 | $371.26 | $716.6 |
55 year old male | $289.29 | $534.85 | $1036.76 |
Methodology: The prices displayed above are based on internal actuarial rate tables for 11 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 October 1, 2020. 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.
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