May brings life insurance stability
The U.S. death rate increased by nearly 16% from 2019 to 2020, according to new provisional data released by the Centers for Disease Control and Prevention. Though the surge in death rates is higher than in previous years, insurers have not adjusted pricing in response to the new CDC report thus far.
In fact, life insurance prices remained relatively stable from April to May. Different age groups and demographics didn’t see any significant changes in life insurance rates, including older smokers, who have previously seen the biggest pricing fluctuations.
The biggest premium change was for 55-year-old female smokers, who only saw a meager .07% decrease in premiums. Small pricing fluctuations like this are normal, as insurers regularly make minor pricing adjustments to remain competitive in the market.
Because insurers are not imposing substantial pricing changes, applicants can still expect to find affordable life insurance coverage. Shopping around is the best way to find the most competitive coverage.
U.S. monthly averages as of May 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 | $21.23 | $34.52 |
25 year old male | $17.12 | $27.08 | $45.14 |
35 year old female | $16.47 | $25.41 | $42.63 |
35 year old male | $18.68 | $30.27 | $51.73 |
45 year old female | $28.39 | $47.49 | $86.31 |
45 year old male | $35.28 | $60.76 | $113.60 |
55 year old female | $60.23 | $107.94 | $206.06 |
55 year old male | $83.64 | $151.23 | $286.53 |
U.S. monthly averages as of May 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 | $35.39 | $59.95 | $111.16 |
25 year old male | $43.79 | $75.09 | $139.48 |
35 year old female | $45.25 | $79.74 | $146.47 |
35 year old male | $53.99 | $95.09 | $179.82 |
45 year old female | $91.14 | $167.07 | $319.69 |
45 year old male | $123.10 | $229.26 | $441.04 |
55 year old female | $201.11 | $373.25 | $720.43 |
55 year old male | $292.16 | $538.10 | $1043.16 |
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 May 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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