How age affects life insurance rates

Do you want to purchase an insurance policy for the first time? Life insurance? Before you commit to a purchase you must understand what the annual price for the policy is calculated. 

There are a variety of variables that affect which risk class of insurance the policy is assigned. 

Apart from your the health of your body, age is one of the factors that insurance companies consider when assessing your life. the consideration.


  • Your age is among the most important factors that affect the cost of your life insurance regardless of whether you’re looking for an annual or term-based policy.
  • Generally, the amount of premium is increased by 10% to 8 percent per year that passes; however, it could be as little as 5% annually when you’re in your 40s and up to 12 percent annually when you’re older than 50.
  • In the case of term life insurance the premium is set at the time you purchase the policy. It is the same year after year. In the case of whole life insurance, the cost of insurance increases every year.
  • Age can also determine whether an individual is eligible to receive life insurance and medical examinations that qualify becoming increasingly rigorous.

How Life Insurance Rates Work

The purpose of life insurance is to pay an inheritance to the person or people whom you choose as beneficiaries if you pass in death. 

In exchange for this protection you must pay a fee to the company that offers life insurance.

If you have the term insurance it is possible to pay these fees for a specific period stipulated under the policies. 

In the case of life insurance that is permanent policy, the premiums will be due for as for as long as the policy remains in force.

Businesses that offer life insurance can make use of tables actuarial to set the rates for life insurance. 

Actuarial tables can be utilized to calculate mortality and life expectancy rates. 

These tables, as well as other variables, determine the amount you’ll have to be paying for life insurance.

Life insurance for term policies generally provide lower premiums when in comparison to life insurance that is permanent.

Risk Class and Life Insurance Premiums

When you’re calculating the price you’ll be paying for life insurance the classification of risk is a factor. 

The life insurance industry assigns applicants different risk classes, based upon various factors, including:

  • Age
  • Gender
  • General health, including weight and presence any preexisting conditions
  • Smoking status
  • Family family history
  • Occupation
  • Engaging in dangerous hobbies like hang-gliding, sky-diving, or hang-gliding. 1

If you’re in the risk category with the lowest risk, that could be known in the form of Preferred Plus or Elite, according to which insurance firm you choose, you’ll generally be charged the lowest premiums. 

However it is possible to have to pay the highest premium in life insurance premiums if you’re placed in a low risk class depending on your smoking, health age, or other variables.

If you’re looking at a life insurance policy or general policy then it’s the amount of interest on the cash value can drive the price either way. 

“A higher the cash value could help in making sure that premiums are kept to the minimal amount,” says Fredy who is an accredited retirement counselor and the founder of Smart Money Financial Advisors in Sterling Heights, Mich. 2. “A lower than expected return on cash value may require more funds for the insurance to stay in place for the duration of.”

However, according to C. H., a life insurance agent with Huntley Wealth and Insurance, located in San Diego, Calif. Chris Huntley explains “Age is the largest factor in the whole and term life insurance rates. “

Making changes in your job and changing jobs, losing weight as well as quitting smoking can all aid in improving your risk assessment for insurance.

How Insurance Premiums Rise With Age

The annual price, or “rate,” for a term life insurance policy is decided at the moment of purchase and is set for the length that the plan. 

“The rate is determined for the length of the period,” says Fredy.

The premium typically is increased by an average of 8 to 10% for each one year, as per T. B. Director, Life Insurance Concepts Inc. 4. “A male aged 45 will spend on average $1125 for a brand new 20-year term insurance policy that has 1,000,000 in protection,” he says. 

“The identical policy bought at age 46 will cost $1,225, and $1,345 per year when purchased at 47.”

Every year, the reason for how much higher the price of life insurance for term is as simple as math. 

“Every birthday brings an additional year in life expected lifespan which means it is more costly for insurance,” says H. 

He estimates that insurance rates increase each yearyear by 5 to 8% when you reach your 40s and up to 9to 12 percent every year if you’re older than the age of 50.

In order to keep the cost of life insurance for term at a steady level rather than increasing premiums on birthdays, insurers distribute the amount you pay over 10-20 or 30 years, and then average these into one monthly payment, H. explains. 

Instead of paying low rates for young people and expensive premiums as you get older and paying the same amount each year.

If the terms that you have on your existing insurance policy is up, you could be facing extremely high rates based on your age.

 “If the insured is older than the original period and the insurance company has to alter the rate to reflect their years of age” H. says.

Life Insurance Rates by Age
insurance rates by age

Life insurance rates per month for a 20-year term policy

Life insurance premiums for all types of policies increase as you age, but. 

The provider is the one that changes the rates every year using the actuarial tables.

. They increase with each new age because every year, there is a greater demand on cash because of the increasing mortality costs,” says Fredy.

Qualifying for Coverage

Huntley states that age is a factor in the possibility of being eligible to receive life insurance in the first place. 

“Older age can definitely restrict the applicants options.” For instance the majority of insurance companies only provide 20-year term insurance for those between the ages of 18 and 70, according to him. 

After that, you won’t be able to get an insurance policy that’s this long.

Other requirements can also be increased with age. 

“Every insurance company is required to meet underwriting rules that usually require some health-related tests,” says H.

“The older you get older, the more testing an insurance company requires.”

For example an applicant who is 44 years old applying for a $500,000 insurance policy with American General Life Insurance Company will probably be required to undergo a medical exam which includes urine and blood tests. 

When you reach 45, H. says the same person who wants to purchase the same insurance will need to undergo an unrested EKG in addition to the medical exam and laboratory work.

“Additional tests can definitely affect rates since they could be able to detect more health problems,” he says. 

For older applicants Life insurance providers are also beginning to assess the mental health of their customers. 

“I recently had my policies denied due to an examiner who visited my 75-year old applicant’s residence and listed 10 things in that room” He recalls. 

If asked to recite them, “my client could only recall three of the items and was refused coverage because of the belief that it was the cognitive deficit.”


Life insurance without exam policies allow you to receive insurance without having to undergo a medical examination. 

However, you could pay more prices for premiums.

The Bottom Line

Since each year you live can add money to the life insurance premium make sure to purchase the policy you’re thinking of buying prior to the date of your next birthday. 

insurance rates quote

To ensure that you get the best price for the insurance you’re looking for Get estimates from at least two of the most reputable life insurance companies that you can find.

If you’re still searching think about speaking with one of the an independent insurance agent who is affiliated with several insurance companies. 

Once you’ve located an insurance policy that sounds good, ensure that you purchase only the minimum amount of protection (dollar in terms of amount) that you’ll actually require.