There is a lot of variation in term life insurance rates by age. While there are no hard and fast rules about how much a term life insurance policy might cost for any one individual, since the prices offered by different insurers vary so much, it is almost universally true that term life policies are substantially less expensive than whole life insurance policies.
This is only one of a few very important differences between the two major categories of life insurance. If you’re unsure about whether a term life or whole life policy is for you or you would just like to know more about the differences in term life insurance rates by age, read on for a little more information about term life policies.
A term life insurance policy is a form of temporary life insurance. These policies expire after a predetermined length of time, generally ten, twenty or thirty years, although this may vary from one insurance company to another. The policy provides no frills life insurance coverage; if you should die during the term that the policy is in effect, a death benefit will be paid to the beneficiaries you name in the policy as long as you continue to pay your premiums.
As mentioned above, term life insurance is less costly than whole life; one of the reasons for this is that unlike a whole life policy, none of the money paid in premiums goes towards investment.
So while a term life insurance policy does not accumulate any cash value, it still provides the same basic coverage as any other kind of life insurance and at a lower cost.
One thing to keep in mind about term life is that there is a difference in term life insurance rates by age. Like any other kind of life insurance, the younger and healthier you are when you purchase your policy, the lower the premium you’re likely to be offered as long as you don’t work in a high risk occupation.
While there are some adjustments which may be made depending on your health, there is just no getting around the fact that the older you are, the more statistically likely you are to pass away before your term life insurance policy expires and your premiums will tend to reflect this fact.
Your age is one of the biggest factors in determining what you’ll pay for term life insurance.
Along with the state of your health, your gender, your occupation and whether or not you smoke, this is what will help insurance companies decide how much you will pay in premiums.
Regardless of your age, however, you’ll get the best possible price on your term life insurance by comparison shopping for your coverage. It won’t change the fact that term life insurance rates by age can vary a great deal, but it can help make your insurance more affordable.