The average price for life insurance policies is expected to drop to about $2,300 a year by 2021, according to an analysis by the Federal Trade Commission.
The median annual premium for those policies is now at $2.5 million, according the study.
The report, released on Wednesday, showed that the average annual premium has dropped by about $500 since 2011.
In 2018, it dropped by $300.
The FTC’s study looked at life insurance coverage from 2018 to 2020 and determined that life insurance premiums dropped by 10 percent and premiums on the most expensive policies dropped by 12 percent, the report said.
The most expensive policy in 2018 was a $2 million policy that had an average premium of $2 billion.
The least expensive policy was a policy that offered a $500,000 rate.
The average premium for the most common policy has dropped over the past decade from $1,700 a year to $1.9 million.
The analysis showed that life insurers are making a lot of money from the insurance market.
In 2019, they made an average of $1 billion a year from the market, the FTC said.
In 2019, life insurance is estimated to make up about 40 percent of the premium for policyholders, the agency said.
A quarter of the total premium revenue for life insurers comes from policyholders who purchased insurance on their own.
The federal government has subsidized life insurance for many low-income people.
The program, known as Supplemental Security Income, has been around since 1935, but its finances are much worse than it was a generation ago.
The Congressional Budget Office estimated that the program would run out of money in 2027 and would be insolvent by 2036.
The Trump administration is considering a cut to the program, which would lead to lower benefits for low- and moderate-income Americans.