Understanding Life Insurance Rates By Age

Did you know that the costs of life insurance can vary by provider and policy? 

How about the fact that your age can play a factor in how much you pay for insurance? 

There are a lot of variables to consider while you’re looking for a policy, so if you’re ready to learn all about life insurance and how something like age could affect it, read on.

How Life Insurance Rates and Age Intersect

Even the average cost of life insurance varies upon who you ask. 

On the low end, you’ll see figures hovering around $20/month, but at the opposite end of the spectrum you might see life insurance rates as high as $130/month.

This is all because there are multiple factors that play into the calculations that providers make when determining premiums.

As it turns out, age is one of the biggest deciding factors that insurers take into consideration for both term and permanent policies. 

This is because your age is associated with the risk of you dying, and as your age increases, that risk increases along with it. 

Insurers think that you’re more likely to die as you grow older, and will therefore charge you greater amounts to maintain a policy as you age.

Here are some additional details you might find interesting about age and insurance

When You’re Young

Younger individuals are often the healthiest individuals. Therefore, your insurance rate when you’re young is likely going to be at its lowest.

What’s more, you’ll only require a small term policy to cover any financial burdens that may arise from an untimely death, so a term policy is usually your best bet.

When You’re Middle-Aged

As you get into your middle-aged years, from 40 up to about 70, you’ll often be setting yourself up with a policy that will provide lifetime protection. 

Additionally, you’ll probably want that policy to provide a significant death benefit upon your death to handle any debts and to pass along to your children. 

As a result, you’ll pay substantially greater rates for a policy purchased during these years.

When You’re of Advanced Age

Once you get to a certain age, it’s likely that you’ll have to start looking at policies that are tailored for senior citizens, and take into account your reduced life expectancy. 

These policies may have higher rates and limits on the amount they’ll pay in benefits.

Wrapping Up

Remember that insurers use your life expectancy to determine how much they’ll charge you for premiums, and that your age is one of the biggest factors in that equation.

Other variables include gender, and your overall health (which is usually determined by an overview of your medical history and a physical examination).

When looking for policies, be sure to get quotes from several sources to find the best rates that you can, and take good care of yourself to keep that premium as low as possible.