Life insurance rates by age

Life insurance quotes can vary greatly from individual to individual. The age of the applicant is one of the most important factors in determining the average cost of life insurance. Generally, the older a person is, the higher the cost of their life insurance premiums will be. Life insurance policies are designed to pay a death benefit when the insured dies. Anything that increases an insured’s chances of death can also increase rates. Age is one of the most important determinants of future life expectancy, so it is also one of the most influential variables in determining life insurance rates.

Many other variables are also used to calculate these rates. An applicant’s health, family medical history, and risky lifestyles and hobbies may be considered in determining rates when underwriters review an applicant. Yet few, if any, of these factors have as much impact as age when it comes to rates.

How life insurance rates are determined

Life insurance companies use a few different criteria to calculate your premium. Some of the most important include your age, your general health, your gender, the type of policy you buy and the amount of coverage you choose. Here’s a closer look at these five categories and how they impact your life insurance premium.


The first factor that determines your life insurance premium is your age. Young people tend to pay the lowest life insurance rates and the elderly pay the highest rates. Although there are exceptions, a 30-year-old will likely receive a lower premium quote than a 40-year-old, and a 40-year-old will pay less than someone 55 or older.

Life insurance rates increase as you get older, as older age usually means health complications or simply a shorter lifespan. This means that insurance companies can expect claim reimbursement to come sooner for an older person and often charge a higher premium to compensate for this risk.


Health is another important factor that contributes to the cost of life insurance. People who have pre-existing health conditions – such as diabetes, heart disease or obesity – usually don’t live that long as healthy people without conditions. As a result, insurance companies may charge higher rates to people with medical conditions or a family history of illness.

In addition to a traditional medical exam or health questionnaire, insurance companies use a rating system to determine your health risks. The following categories are represented:

  • Favorite Plus: People in the Preferred Plus category are in excellent health with no family history of disease or pre-existing conditions.
  • Prefer: Those in the Preferred category are generally in excellent health, but they may have a family history of one or two illnesses.
  • Standard Plus: The Standard Plus category means individuals are mostly healthy, but may be slightly overweight or have minor conditions without a long family history of illness.
  • Standard: People in the Standard category suffer from moderate health problems and have a strong family history of illness.
  • Substandard: This category is for apps with moderate to severe health issues or risky health habits, such as smoking.

Insurance companies may use different categories, depending on their own regulations.


It’s perhaps unsurprising to learn that your gender also plays a key role in your life insurance premium. Men generally pay more for life insurance than women. Indeed, statistics show that women have a longer lifespan than men. According to data from the US census, the projected average life expectancy for a female in 2020 was 81.9 years, and for males the projected average was 77.1 years.

Policy type

Life insurance premiums also reflect the type of policy you purchase. Term life insurance is the most affordable policy because it provides coverage for a limited number of years. If you do not die during the term, the policy expires without a death benefit being paid. On the other hand, permanent life insurance policies are usually more expensive because they provide coverage for your entire lifetime.

If you purchase a guaranteed life insurance policy, you may end up paying the higher rate. Guaranteed life insurance policies do not require a medical exam, so to compensate for the added risk of insuring elderly or ill-healthy people, insurance companies charge extremely high premiums compared to other forms of insurance. ‘life insurance. Despite the high rates, guaranteed life insurance policies usually have very low policy limits, as they are usually designed to cover end-of-life expenses.

Cover limit

The final factor that determines your life insurance premium is your policy’s coverage limit. The higher your coverage limit, the more expensive your insurance premium will be. When you die, your insurance company agrees to pay your beneficiaries a certain amount of money. To mitigate this payment, the insurance company will price your policy accordingly.

For example, someone with a coverage limit of $100,000 will likely have a much lower premium than someone with coverage of $1,000,000. In the end, it will cost the insurance company less money to pay $100,000 than to pay $1,000,000, so the average premium cost would be much lower.

Life insurance rates by age

When shopping for life insurance, it’s important to consider your age and understand how it will affect your premium. Depending on your age, you may decide to choose one type of life insurance over another in order to obtain a more affordable rate. Here is a brief overview of life insurance rates by age:

Young adult life insurance

Young adults are usually at the peak of their health and may only need a small blanket. Most people will find that a term life insurance policy provides adequate coverage for their needs and budget. For example, a 35-year-old couple with a 5-year-old child might consider purchasing term life insurance policies with $500,000 coverage over a 30-year term. This could help provide a financial cushion for the surviving spouse in the event of death. The death benefit could be used to help pay the mortgage, replace the lost spouse’s income and cover the child’s education costs. In most cases, life insurance policies for young adults are based on what fits your budget and cover immediate outstanding financial issues, such as funeral expenses or outstanding debts or loans.

Middle-aged life insurance

People between the ages of 40 and 60 will generally benefit the most from a permanent life insurance policy that offers lifetime protection. Life insurance for middle-aged policyholders can be aimed at helping a spouse pay off a mortgage balance and pay off other debts if their partner dies. Life insurance can also be used to leave a financial gift to a spouse or loved one without necessarily earmarking the money for a certain purpose.

Life insurance for seniors

Most insurance companies will not sell new life insurance policies to people over a certain age, usually between 70 and 80. For those who are older or have pre-existing health conditions, a guaranteed life insurance policy may be the best or only option. This type of policy does not involve a medical exam and coverage is approved for almost everyone. Guaranteed life insurance policies generally have a death benefit cap of around $25,000.

Life insurance rates generally increase as you get older. However, insurance companies consider other factors, such as your general health, your gender, the type of policy you have and the amount of coverage you need in order to calculate your personalized rate. If you’re considering life insurance, it’s a good idea to consider what type of policy is right for your age, budget, and coverage needs.

Frequently Asked Questions

Who has the best life insurance policies?

The best life insurance company for one individual may not always be the best for another. Each policyholder has their own needs. Additionally, some insurance companies specialize in different areas. For example, the best company for a term life insurance policy may not be the best for a whole life policy, and the best for individual policies may not be the best for corporate life insurance. .

How can I find cheaper life insurance?

One of the best ways to find the cheapest life insurance company for you is to understand your coverage needs. While shopping around can help you save a little money, life insurance rates don’t vary as much from company to company as home or car insurance rates. Working with an agent to determine the best policy type, level of coverage, and riders for your situation could help you find a policy that suits your needs and budget.

How much life insurance do I need?

Deciding how much life insurance coverage to buy can seem daunting, but there are strategies that can help. Before determining how much life insurance you need, it’s important to assess a few relevant variables. The amount of debt you have, your contribution to household income, and your children’s financial goals (like saving for college) are all key variables to consider. From there, it can be helpful to follow a guide (or use a calculator) to determine the level of financial protection you might need against these variables.

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