The impact of age on (your) life insurance
When determining the cost of life insurance, the impact of age on (your) life insurance is a key factor. In general, the younger someone is when they purchase a policy, the cheaper regular premiums are likely to be because the risk to the insurer is lower, as younger people are statistically less likely to die during the term of the policy.
It makes sense that as you age, the cost of new life insurance cover generally increases because the likelihood of death increases, especially true for people who have developed health issues or who engage in risky behaviours including smoking or extreme sports.
For example, a 65-year-old smoker with a history of health problems is likely to pay significantly more than a 25-year-old non-smoker in good health for the same level and duration of cover. Insurers will also consider your age when determining the length
of the policy term, with longer terms generally being available to younger people. Although maximum age limits vary, many insurance companies offer a maximum term of around 40 years.
The impact of age on (your) life insurance is just one factor affecting the cost; the insurance company will also consider your occupation, family medical history, overall health, lifestyle and the length of policy. Few things in life can provide more peace of mind than having a secure financial future. Choosing the right protection plan can protect your family’s lifestyle and it's worth considering it now rather than waiting until you are older.
Our Insurance and protection fact file will help you consider the important things.