When considering a life insurance policy, many people believe that any time is the best to purchase life insurance and wait for a major life event or till they have spouses, families, and houses. However, age is one of the major factors that insurance companies consider if you want to buy life insurance. So how does your age affect the rate you'll pay for life insurance?
Why Does Age Matter?
Age is the main factor when determining your life insurance rate—the greater your age, the greater your risk of death. If you're 50 years old, you will pay more than when you're 30, even if you are in equally excellent health. Once you secure your life insurance policy, your rates won't change. You will be locked in regardless of future changes to your health or age, which is why purchasing life insurance when you're young is emphasized, and this could save you money in the future.
How Does Age Affect Your Life Insurance?
Life insurance protects your family and loved ones by providing a cash payout if you die while your policy is active. However, since each year puts you closer to your life expectancy, the insurance company is taking more risk to insure you, so your fee for life insurance increases as you age. When you shop for a policy, your age will help determines:
Your eligibility: While life insurance options are available at every age, you'll have the best choice when you are young. For instance, some insurers might not sell a 30-year term life policy to someone 65 or older.
The cost: Premiums increase about 8-10% each year. That means if you're 50, you're likely to pay more than someone who is 40 and in similar health. Therefore, it's best to lock in your life insurance when you’re young.
The buying process: The life insurance purchasing process changes over time as you get older and have more potential for health issues. For example, you may not need a medical exam if you're younger and healthier. However, you might need to take a few extra medical tests if you're older. And if you have serious health issues, your insurance company might request additional medical records from your doctor.
Are There Other Options For Older Individuals?
There are other policies that may be a better fit for you if you are older. These types of insurance policies may cover accidental death or final expenses. For example, Guaranteed Issue Whole Life Insurance doesn't require a medical exam and may cover up to $25,000. This policy protects your loved ones from paying for final expenses. Also, age is not a factor when getting Accidental Death Insurance. However, you will only be protected from death resulting from an accident.
Contact ChooseTerm.com For Life Insurance 65 And Over
Age is an essential factor in securing many types of life insurance. If you're over 65 years and need help getting life insurance, ChooseTerm.com can help. Give us a call at 541-400-9040 to speak with our licensed agent.