Does Age Affects Your Life Insurance Rates?

Have you given any thought to getting fresh life insurance? It is critical that you have a solid understanding of the factors that go into calculating the yearly premium for a policy before you make a decision. There are several different elements that go into determining the insurance risk class that an individual is placed in.

In addition to your state of health, your age is another factor that is considered by life insurance providers. While you get a policy when you’re an older person, the premiums will be much more costly. This is due to the fact that the cost of life insurance is calculated using actuarial life tables, which assign a chance of dying while the policy is still in effect.

Regrettably, the older you are, the more probable it is that you will pass away sooner than you had anticipated. Continue reading to get a better understanding of how the cost of life insurance is affected by age, as well as the reasons why it could be more cost-effective to purchase a policy while you are younger.

How Life Insurance Rates Work

When you pass away, the life insurance policy you have will pay out a death benefit to whoever you have designated as the beneficiary or beneficiaries. You pay a premium to the life insurance company in return for this coverage. For a term life insurance policy, you would pay the premiums for the length of time that the policy specifies. Consistent coverage payments are required for the duration of a permanent life insurance policy.

For the life of pricing life insurance policies, actuarial tables can be used by insurance providers. Life expectancy and mortality rates are calculated using actuarial tables. Your final life insurance coverage may pay on these tables and other variables.

Risk Class and Life Insurance Premiums

Your risk class is a factor in determining your life insurance premium. There are different risk classes that life insurance companies place applicants into based on factors like:

  • Age
  • Gender
  • Overall health, including weight and the presence of preexisting conditions
  • Smoking status
  • Family history
  • Occupation
  • Participation in risky hobbies, such as hang-gliding or sky-diving

If you’re in the lowest risk class, Preferred Plus or Elite, you’ll pay the lowest rates. If your health, smoking status, age, or other risk factors are subpar, you may pay more for life insurance.

The rate of return on the cash value will affect the premium for a whole life or universal policy. Higher cash value returns may reduce policy premiums. A lower-than-expected cash value return will need more financing to extend the policy. Age affects term and whole life insurance prices the most.

How Insurance Premiums Rise With Age

The yearly premium, or “rate,” for a term life insurance policy is calculated upon purchase and fixed for the lifetime of the policy. Frazzitta claims the rate is fixed.

Ted Bernstein, Director, Life Insurance Concepts Inc.3, says premiums rise 8% to 10% every year of age. A 45-year-old man will pay $1,125 for a 20-year term policy with $1,000,000 of coverage. The identical policy cost $1,225 at age 46 and $1,345 at age 47.

Math explains why term life insurance costs rise every year. “Every birthday brings you one year closer to your life expectancy,” explains Huntley. He forecasts that rates rise 5% to 8% annually in your 40s and 9% to 12% annually beyond 50.

Insurers average the premiums you’d pay over 10, 20, or 30 years into one payment to keep term life insurance pricing stable, says Huntley. You pay the same amount every year instead of cheap rates while you’re young and hefty premiums when you’re older.

Once your term policy ends, you might face exorbitant age-based premiums. The insurance company must alter the premium if the insured outlives the original term, says Huntley.

Whole life policy premiums climb with age. Frazzitta says insurance companies base pricing on actuarial data. “They grow each year because escalating death costs erode the cash value.”

Qualifying for Coverage

Age may effect life insurance coverage, says Huntley. “Older applicants have fewer possibilities” Most carriers provide 20-year term policies to 18- to 70-year-olds, he explains. After then, there’s no longer term.

Age increases other needs. Every insurer requires health-related testing for underwriting. Age increases carrier testing. A 44-year-old asking for $500,000 of coverage with American General Life Insurance Company will likely need blood and urine testing. At 45, the same individual may require a resting EKG, medical exam, and lab testing to buy the same coverage.

Additional testing may affect rates by catching more health concerns. Life insurance companies have started analyzing older applicants’ mental health. Rejected applicants may have failed a memory recall test.

When Is the Right Time to get Life Insurance?

Purchasing life insurance while you are younger and healthier will save you money. Getting life insurance while you’re young might help you save money on premiums in the long run if you know you’ll need the coverage (perhaps to start a family or send a kid to college).

How Does the Cost of Life Insurance Change as You Age?

Your life insurance rates will rise if you wait until you’re older to get a policy. At some point, most insurance companies will refuse to provide any further coverage. Although there are no age limits on whole life policies, certain term policies may have them as early as 65 or 70.

Is There Life Insurance Where Premiums Do Not Increase With Age?

Premiums for group life insurance policies are typically the same regardless of the insured person’s age, gender, or health status. However, if you stop working for the firm, you lose access to these policies because of their restricted coverage and portability.

How Much More Do Women Pay as They Get Older for Life Insurance?

No. When comparing life insurance rates, it is common knowledge that women pay less than males. This is due to the fact that women, on average, outlive males.


Because your life insurance premium might increase by a certain amount for each year that you live, you should make every life to purchase any policy that you are contemplating before your next birthday.

Requesting price estimates from two or three of the most reputable life insurance providers you can locate is the greatest way to assure that you will get the most affordable premiums for the coverage you want.

If you are still searching for insurance, you may want to explore speaking with an independent agent that is affiliated with many insurance companies. When you have located a policy that seems to be in your best coverage, the next step is to ensure that you do not get a higher level of financial protection than is necessary for your situation.