Average life insurance rates are stable as we enter 2022

Monthly life insurance premiums remained stable at the start of the new year, according to data from Policygenius. (iStock)

The life insurance sector has maintained stable prices by 2022, according to political genius. Most non-smokers saw small rate increases of less than 1% between December 2021 and January 2022, while smokers saw no change in their monthly premiums.

Average life insurance premiums have remained stable despite a rise in mortality linked to the coronavirus pandemic. Death benefits increased by 15.4% in 2020, according to the american council of life insurers (ACLI). However, data from Policygenius suggests that consumers need not worry about rising life insurance premiums just yet.

Keep reading to learn more about the average monthly cost of life insurance, as well as how life insurance premiums are determined. If you are considering purchasing a life insurance policy, visit Credible for free life insurance quotes.


Average cost of life insurance by age and gender

Monthly life insurance premiums remained stable at the start of the new year, according to data from Policygenius, with a minimal increase from December 2021 to January 2022.

Life insurance costs are lowest for young policyholders with low health risk, while rates tend to increase with the age of the policyholder. For example, it costs $25.56 per month to insure a healthy 35-year-old woman with a 20-year term life insurance policy worth $500,000. This same policy would cost $152.23 per month for a healthy 55-year-old male.

Table of average monthly life insurance rates by age

Average life insurance rates are also significantly higher for smokers than for non-smokers. The policy used in the example above would cost $224.46 per month for a 45-year-old man who smokes, compared to only $61.05 for a non-smoker of the same age.

Regardless of a person’s age or health, however, life insurance rates have remained relatively stable through 2022. If you’re shopping for life insurance, you can browse policies and see monthly rates tailored to you on Credible.


How are life insurance premiums calculated?

The monthly cost of life insurance depends on the life expectancy of the insured. Life insurance companies consider a number of factors, such as age, gender, health, medical history and even hobbies. Consumers who are riskier to insure should expect to pay higher monthly premiums, while low-risk policyholders will cost less to insure.

To determine your health risk, life insurers may require you to undergo a medical examination. Health issues like high blood pressure or obesity can factor into the overall cost of a life insurance policy.

Premiums also depend on the type of life insurance policy you have. Longer policy terms will have higher monthly costs, while shorter policy terms with lower coverage amounts will be less expensive.

It’s generally recommended to purchase life insurance with a coverage amount equal to 10 to 15 times your annual individual income, according to Policygenius. The duration of the policy must be long enough to cover you until retirement age.

For example, a 45-year-old mother who earns $65,000 a year might consider a 20-year term policy with a coverage amount of $1 million. That’s about 15 times her annual earnings, which may be needed to care for dependents If she dies unexpectedly.

On the other hand, a 35-year-old married man with no children who earns $50,000 a year might consider 30-year-old life insurance with a coverage amount of $500,000. This policy is long enough to bring her to retirement age, and the amount of the death benefit may be enough to cover her spouse’s expenses.

When it comes to choosing a life insurance policy, there is no one-size-fits-all approach. You will need to consider the best policy based on your lifestyle and financial situation. Speak with a Credible financial expert to determine your life insurance needs.


Do you have a financial question, but you don’t know who to contact? Email the Credible Money Expert at [email protected] and your question might be answered by Credible in our Money Expert column.

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