Do Life Insurance Premiums Increase with Age?

Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Life Insurance Premiums and Age

Yes, life insurance premiums generally increase with age when you initially purchase a policy. However, once you have purchased a policy, the premiums usually do not increase.

Understanding Premium Increases with Age

  • Initial Purchase: Premiums are typically lower when you’re younger and increase as you age. This is because insurers view older applicants as higher risk.
  • After Purchase: The premiums are fixed for many life insurance policies, especially term life insurance. Once you buy the policy, your premiums do not increase with age.

Types of Policies

  1. Term Life Insurance: Offers fixed premiums for a specific period.
  2. Whole Life Insurance: It can have fixed premiums despite being a lifelong policy.
  3. Universal Life Insurance: This may have variable premiums.

Exceptions to Note

Renewal of Term Policy: If your term life insurance expires and you renew it, the new premiums will likely be higher based on your age at renewal.

  • Certain Universal or Whole Life Policies: Some policies may have premiums that vary over time.

Life Insurance Premiums by Age and Policy Type

Age RangeTerm Life InsuranceWhole Life InsuranceUniversal Life Insurance
20-30Lowest PremiumsModerate PremiumsVaries
31-40Moderate PremiumsHigher PremiumsVaries
41-50Higher PremiumsHigher PremiumsVaries
51+Highest PremiumsHighest PremiumsVaries

Conclusion

In summary, life insurance premiums increase with age at the initial purchase stage. However, for many policies, especially term life insurance, the premiums are fixed once the policy is purchased. It’s important to consider the type of insurance and your age when purchasing a policy. Understanding these factors helps in making an informed decision about life insurance. Contact us today for a free quote.

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Shawn Plummer, CRPC

Chartered Retirement Planning Counselor

Shawn Plummer is a Chartered Retirement Planning Counselor, insurance agent, and annuity broker with over 14 years of first-hand experience with annuities and insurance. Since beginning his journey in 2009, he has been pivotal in selling and educating about annuities and insurance products. Still, he has also played an instrumental role in training financial advisors for a prestigious Fortune Global 500 insurance company, Allianz. His insights and expertise have made him a sought-after voice in the industry, leading to features in renowned publications such as Time Magazine, Bloomberg, Entrepreneur, Yahoo! Finance, MSN, SmartAsset, The Simple Dollar, U.S. News and World Report, Women’s Health Magazine, and many more. Shawn’s driving ambition? To simplify retirement planning, he ensures his clients understand their choices and secure the best insurance coverage at unbeatable rates.

The Annuity Expert is an independent online insurance agency servicing consumers across the United States. The goal is to help you take the guesswork out of retirement planning and find the best insurance coverage at the cheapest rates

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