As COVID-19 cases rise, life insurance prices stay the same
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.
U.S. monthly averages as of September 1, 2021
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 | $14.25 | $21.14 | $34.31 |
25 year old male | $17.17 | $27.00 | $44.90 |
35 year old female | $16.54 | $25.47 | $42.75 |
35 year old male | $18.78 | $30.37 | $51.87 |
45 year old female | $28.49 | $47.53 | $86.15 |
45 year old male | $35.39 | $60.76 | $113.52 |
55 year old female | $60.42 | $108.17 | $206.22 |
55 year old male | $84.20 | $151.54 | $287.11 |
U.S. monthly averages as of September 1, 2021
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 | $35.23 | $59.72 | $110.74 |
25 year old male | $43.63 | $74.84 | $139.01 |
35 year old female | $45.07 | $79.46 | $145.98 |
35 year old male | $53.79 | $94.80 | $179.27 |
45 year old female | $90.80 | $166.52 | $318.66 |
45 year old male | $122.68 | $228.56 | $439.72 |
55 year old female | $200.33 | $371.91 | $717.86 |
55 year old male | $291.19 | $536.46 | $1039.87 |
Methodology: The prices displayed above are based on internal actuarial rate tables for 10 life insurance carriers that offer policies through the Policygenius marketplace (AIG, Banner Life, Brighthouse, Lincoln Financial, Mutual of Omaha, Pacific Life, 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, 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.
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