Life insurance prices remain stable during the pandemic
While the coronavirus pandemic continued to dramatically impact countless businesses and institutions, life insurance prices remained relatively stable between Q3 and Q2 of 2020. Pricing trends over the last six months show minor fluctuations for young, healthy applicants. The average monthly premiums for non-smokers under 55, for instance, ranged anywhere from 21 cents less to 23 cents more in September versus April.
Life insurance prices did increase slightly for older, less healthy applicants. The average monthly premium for smokers rose between 9 cents and $4.06 in September, compared to April, with older, male applicants in that demographic seeing the largest uptick. The increases are likely related to the higher COVID-19 fatality rates associated with seniors and people with lung issues.
Holistically, however, the pandemic hasn’t had a significant impact on life insurance prices and most applicants can find an affordable policy.
U.S. monthly averages as of September 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 | $14.24 | $21.26 | $34.50 |
25 year old male | $17.15 | $27.10 | $45.21 |
35 year old female | $16.53 | $25.53 | $42.67 |
35 year old male | $18.79 | $30.41 | $51.85 |
45 year old female | $28.43 | $47.62 | $86.53 |
45 year old male | $35.39 | $60.92 | $113.64 |
55 year old female | $60.29 | $108.05 | $206.88 |
55 year old male | $84.14 | $151.80 | $287.51 |
U.S. monthly averages as of September 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 | $35.28 | $59.61 | $110.31 |
25 year old male | $43.25 | $73.81 | $137.64 |
35 year old female | $44.95 | $78.90 | $144.26 |
35 year old male | $52.84 | $93.83 | $177.46 |
45 year old female | $90.68 | $165.68 | $316.29 |
45 year old male | $120.93 | $225.33 | $433.18 |
55 year old female | $197.72 | $372.51 | $714.29 |
55 year old male | $283.17 | $528.59 | $1024.2 |
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 September 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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