life insurance can give you peace of mind knowing that when your loved ones die, they will have a financial cushion for everything from mortgage payments to funeral expenses. How much life insurance you need is specific to your individual circumstances and standard of living. But what does it cost and can you afford it? Age, family medical history, gender, the state you live in, and risky behaviors like smoking are all factors Insurance companies use to determine your payment (called a premium). Premiums are usually paid monthly. This applies to the two most important Types of life insurance: whole and concept.
If you are in the life insurance market – or just looking to increase the amount you already have – contact a life insurance professional who can provide you with a free quote.
Read on to learn more about the factors that affect your premium – and what to expect based on your age.
Factors affecting life insurance rates
Age is perhaps the biggest factor in determining your life insurance premium each month. In general, the older you are, the more expensive your payments will be. Also, women tend to pay lower monthly life insurance premiums because, on average, women live longer than men.
Although some term life insurance policies do not require one medical examination, many do. And if you smoke, get ready to pay even more. Why? Because you have a higher risk of dying earlier than non-smokers.
Insurance companies calculate your premium costs using risk-of-mortality calculations for a large population.
Since individual life insurance is tailored to the living conditions of each individual, the premium payments vary greatly – and depending on the federal state. With term life insurance, Policies also vary by the number of insurance years – from 5 to 30 years. Once your policy expires you can apply for an extension, but it probably won’t be the same rate you originally paid.
In addition to term life insurance all, universal and variable types are also available.
Life insurance rates by age
Here’s a look at the average term life insurance premiums by age and smoking status for a 20-year policy with a $500,000 term, as calculated by Quotacy. Prices are effective from 17 October 2022 for “preferred” policyholders or those in the best possible health as determined by the relevant life insurance company.
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