Life insurance prices remain status quo in the new year
There were no changes in life insurance prices across core demographics from December 2020 to January 2021. Prices remained the same for smokers and nonsmokers alike, even though applicants who smoked had seen surges in pricing over the course of the last six months. Fifty-five-year-old male smokers purchasing a $1 million policy saw the biggest uptick of $16.70 from June to December 2020, but entered the new year seeing no adjustments in pricing.
January’s pricing stability is likely due to the holiday season, but small fluctuations are expected to return next month as carriers aim to remain competitive in the current climate.
U.S. monthly averages as of January 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 | $14.23 | $21.20 | $34.51 |
25 year old male | $17.08 | $27.01 | $45.17 |
35 year old female | $16.46 | $25.40 | $42.49 |
35 year old male | $18.66 | $30.23 | $51.55 |
45 year old female | $28.32 | $47.45 | $86.33 |
45 year old male | $35.25 | $60.74 | $113.33 |
55 year old female | $60.18 | $107.78 | $206.49 |
55 year old male | $83.54 | $150.92 | $286.53 |
U.S. monthly averages as of January 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 | $35.19 | $59.66 | $110.59 |
25 year old male | $43.41 | $74.4 | $138.64 |
35 year old female | $45.03 | $79.31 | $145.68 |
35 year old male | $53.53 | $94.55 | $178.74 |
45 year old female | $90.75 | $166.28 | $318.11 |
45 year old male | $122.20 | $227.42 | $438.29 |
55 year old female | $199.78 | $371.51 | $717.15 |
55 year old male | $289.31 | $534.87 | $1036.84 |
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 January 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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