Life insurance rates static as industry sees large annual growth
Life insurance prices remained steady between March and April 2022 after small increases for most shoppers between February and March. Non-smokers and smokers saw a negligible change in rates for April — a decrease of less than 1% in every age category.
This stability in pricing is consistent with recent industry trends, with insurance companies weathering volatility from the ongoing COVID-19 pandemic without making major changes to rates. While companies have been affected by an increase in claims — and may be even more so in 2022, as recently forecast by Morgan Stanley — they’re also seeing increased policy sales. A report from LIMRA shows that sales grew significantly in 2021, marking the highest annual growth since 1983. LIMRA attributes the growth in part to higher consumer demand in response to COVID-19, and predicts that demand will continue throughout this year. Whether shoppers can expect strong sales to keep rates stable long-term remains to be seen.
U.S. monthly averages as of April 1, 2022
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 | $21.16 | $33.70 |
25 year old male | $17.21 | $26.98 | $44.83 |
35 year old female | $16.60 | $25.60 | $42.92 |
35 year old male | $18.93 | $30.42 | $52.01 |
45 year old female | $28.99 | $48.09 | $87.12 |
45 year old male | $35.69 | $60.99 | $113.31 |
55 year old female | $61.73 | $109.39 | $208.86 |
55 year old male | $85.22 | $152.08 | $285.50 |
U.S. monthly averages as of April 1, 2022
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 | $34.14 | $57.39 | $105.96 |
25 year old male | $42.38 | $72.45 | $134.44 |
35 year old female | $43.97 | $77.11 | $141.47 |
35 year old male | $52.80 | $92.71 | $175.24 |
45 year old female | $89.33 | $163.18 | $312.50 |
45 year old male | $120.77 | $224.10 | $430.75 |
55 year old female | $196.64 | $363.47 | $704.52 |
55 year old male | $282.47 | $520.37 | $1,019.02 |
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 April 1, 2022. Monthly averages are based on 10 products available through Policygenius for the indicated profile; rates for those products may vary by state, and not all 10 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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