Comparing Term Life Insurance Rates by Age

Age certainly plays a crucial role in the pricing strategy of term life products. All insurance companies look to minimize the level of risk while selling their product to the clients. As a result younger individuals in a good state of health are always given a preference by being offered lower rates of premiums than their elder counterparts.

Most insurance companies provide affordable insurance to younger people for the following reasons: –

  • The younger the applicant the healthier he or she must be
  • Lower risk of the applicant filing for claims with the insurance company

The simple logic being that those who are in a good overall state of health are likely to maintain it for a number of years. This reduces the element of risk involved and allows insurance companies to adopt much lower premiums for the applicant. The applicant’s health condition can be ascertained by conducting the necessary medical tests along with questionnaire that has details on the medical history of the persons family.

Comparing term life insurance rates by age

Insurance candidates look at the age of the applicant while deciding on the cost of the premium. They also take into account crucial factors such as medical health and history while formulating the policy. The rates of premium for a 45-year male in good health will be much lower than that of a 52 year old male. This is because the older you get, the higher the chances of you filing in a claim with the insurance company.

In order to buy term life insurance, it is important to get multiple quotes on these policies so that you can compare them to one another. Check for insurance websites online and fill in the particulars to get your quotes. The online form may requires details on your zip code, age, your status as a smoker or non smoker and may include some basic questions on your health. Once you have completed the form, you will receive multiple quotes. Many websites offer these quotes in a tabled manner, which makes it easier to analyze them. Look for the pros and cons in each policy and create a short list of term life products that manage to catch your attention.

Following that visit the original company sites of the shortlisted policies and obtain more accurate quotes. This will give you clearer picture of the term life policies on offer. While doing the research the first thing you would notice is the difference in pricing of premiums for the same policies across each age group.

For instance, in a twenty-year term life policy of $500,000 a 50-year-old man born during the year 1963 may have to pay $940 as a yearly premium. The same policy would cost $2600 for an individual who was born ten years earlier in 1952. Its not uncommon for the price of your premiums to be three or more times higher than the preceding age group for the same type of policy.

As a result, age can often play a defining role while determining the price of your policy. If you decide to go in for a term life policy for the long term, make sure to apply for one when you are younger and stand the best chance of getting the lowest premium possible.