As September marks Life Insurance Awareness Month, it’s a great time to consider purchasing coverage. Prices remain low and some insurers have dropped application restrictions that they had implemented at the start of the pandemic.
Pricing stability also continues to be an ongoing trend, regardless of the economic impact of COVID-19. There were no significant changes to life insurance prices from August to September, even with a resurgence of COVID-19 cases, hospitalizations, and deaths across the U.S. due to the Delta variant.
Prices remained static despite a new report from the Social Security and Medicare Trustees that projects mortality rates will be elevated by 15% this year because of the pandemic. The report also forecasts that mortality rates across the country will be higher than usual through 2023, when they are expected to fall to 1% higher than pre-pandemic levels. This is just one of many reports released by the federal government this year that cites the pandemic as the cause of increased deaths and shorter life expectancies for Americans. Insurers haven’t responded to previous reports with pricing changes, either.
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.
Find your best life insurance prices today.