The March edition of the Policygenius Life Insurance Price Index shows that life insurance prices for older smokers and older nonsmokers decreased from February to March.
The free monthly index, provided by online insurance marketplace Policygenius, displays average monthly life insurance rates using current data from leading life insurance carriers to illuminate pricing trends for consumers.
The biggest decrease was for female smokers aged 55, with average monthly rates dropping by $19.50 for a $1 million policy. This is the first time during the pandemic that older applicants have seen a significant price decrease, which is typically seen by younger, healthier applicants.
“It’s interesting to see this price drop, which we sometimes see when insurers are aiming to remain competitive,” said Jennifer Fitzgerald, CEO and co-founder of Policygenius. “Beyond these small fluctuations, we’re continuing to see affordable options across all demographics.”
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.
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 (age, gender) and policy type (term, coverage amount) as of the most recent publication date.
MIB: Life application activity still rising
U.S. life insurance application activity continues rise with Year-over-Year (YOY) activity up +7.3% in February 2021, according to the latest MIB Life Index. Year-to-Date (YTD) activity was up by +5.5%, continuing a growth trend that dominated most of 2020, with the exception of a brief pandemic driven stall in April and May.
Composite YOY growth percentages increased as face amounts increased, with growth ranging from +8.9% for face amounts up to and including $250,000 to +15.7% for face amounts above $5 million. Ages 0-60 produced the most growth YOY, with double digit increases across all face amounts above $250,000.
All age groups saw growth for amounts up to $250,000 YOY, with double-digit growth for ages 31-60. Ages 61-70 also saw growth for face amounts over $2.5 million, in double digits for amounts over $2.5 million up to and including $5 million. In contrast, age 71+ saw double digit declines in amounts over $250,000 up to and including $500,000 and over $1 million.
All product types had YOY composite growth, with double-digit growth seen for Term and Universal Life. All age bands under age 70 had growth for all product types, with double-digit growth in Universal Life for ages 0-50 and in Term Life for ages 31-60. Ages 71+ saw a downward trend in Universal Life in favor of growth in Term and Whole Life.
On a monthly basis, activity in February 2021 grew by +5.9% compared to January, despite the short month, President’s Day holiday and weather challenges in the southern U.S. Of particular note, February was the first month since September 2020 where all age groups saw month-over-month increases (ranging from +4.4% – +8.0%).
To view the entire archive of historical reports, visit: www.mibsolutions.com/regLI