Having life insurance is the best way to keep your family safe and protected, as it offers them financial protection during your absence. When you apply for life insurance, you need to understand how it works and how the premium is calculated.
Apart from your health condition and gender, your age can influence the cost of your life insurance policy.
Why Age Plays a Role in Life Insurance?
Your age will help insurers understand your financial capacity and life expectancy.
The premium on a life insurance policy is influenced primarily by your age. A 40-year-old person is less likely to get a high-paying job compared to a 20-year-old person. Your age will determine the premium you have to pay for your coverage.
Moreover, every year, your life expectancy decreases, causing the rate of life insurance to increase.
How Age Affects Term Life Insurance Policies?
Term life insurance is relatively cheap if secured early in life. The initial value varies with age, which means the cost of life insurance is more if you are older. However, once your coverage is secured, the rates remain unchanged for the term of the policy.
You need to renew your policy once the term of your insurance ends.
How Age Affects Whole Life Insurance Policies?
Whole life insurance offers the advantage of receiving dividends regularly, but your age will affect life insurance rates.
With whole life insurance policies, you can expect to pay about 8-10% more every year. This percentage is a general value that can also vary depending on the age group of policyholders.
Since life insurance rates are affected by age, getting a policy while you’re young can save you a lot of money. For assistance with all your life insurance needs and questions, contact the experts at VGW Walker Insurance in Texas today. We will help you choose the right life insurance cover that meets your requirements.
