Policygenius Life Insurance Price Index Special Analysis: Looking Back at a Year of Life Insurance Rates

One year into pandemic, older smokers are paying slightly higher premiums, while nonsmokers have not seen major rate changes

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Policygenius

Apr 08, 2021, 09:47 ET

NEW YORK, April 8, 2021 /PRNewswire/ -- Policygenius, the nation's leading online insurance marketplace, announced today the April data release of the Policygenius Life Insurance Price Index, which displays average monthly life insurance rates using current data from leading life insurance carriers. In this month's index, analysts took a look back at a full year's worth of life insurance rates and how they've fluctuated during the past year and the coronavirus pandemic.

The April 2021 index special analysis shows that compared to April 2020, older smokers can now expect to pay slightly higher life insurance premiums, whereas nonsmokers have not seen substantial rate changes. For example, 55-year-old male smokers are paying nearly 4% more in April 2021 for a $250,000 term life insurance policy than they were in April 2020. In general, older smokers have seen the steepest increases in life insurance premiums throughout the year.

Overall, healthy demographics have not seen major life insurance pricing changes over the past year. In fact, some nonsmokers saw a nominal decrease in pricing from April 2020 to April 2021.

"Age and health play a big part in determining life insurance rates, and we've seen that play out as insurers have navigated the pandemic this year," Jennifer Fitzgerald, CEO and co-founder of Policygenius, said. "As some studies have found that smokers are at higher risk of developing severe COVID-19 outcomes, it's likely that the pricing increase for that demographic is due to insurers adjusting their underwriting process for that group, though this may not be the only factor at play. Overall, life insurance rates have not been significantly impacted by the pandemic, and there continue to be many affordable options for people to find coverage."

Insurance rates can vary as the market fluctuates, as well as when a shopper's personal profile changes. Life insurance prices are primarily based on life expectancy while also factoring in personal details about an individual, including age, medical history and hobbies. Prices also depend on the length of a policy and how much coverage a consumer opts to get.

"As we look back on an unprecedented year and the changes it brought on, we're proud to continue helping Americans with all health profiles learn about insurance and find the financial protection that best suits their needs," Fitzgerald said.

The prices included in the Policygenius Life Insurance Price Index are based on internal actuarial rate tables for 11 of the life insurance carriers that offer policies through the Policygenius marketplace. The prices represent the average monthly premium for each sample customer profile^¹ (age, gender) and policy type (term, coverage amount) as of the most recent publication date. New data from this free index is published on a monthly basis to illuminate pricing trends for consumers.

About Policygenius:
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 $75 billion in coverage. Policygenius launched in 2014 and is one of the early insurtech pioneers. Policygenius launched digital wills and trusts in 2020. Policygenius was named to Forbes' list of Best Startup Employers (2020), Crain's Fast 50 (2019) and Inc. Magazine's Best Workplaces (2018, 2019, 2020).

For more information:
Brooke Niemeyer
Associate Director of Media Relations
[email protected]

^¹Monthly averages are based on 11 products available through Policygenius for the indicated profile; rates for those products may vary by state, and not all products are available in all states. Individual rates may vary, depending on age, gender, state, health profile and other eligibility criteria.

SOURCE Policygenius