Life Insurance Rates By Age

While life insurance companies consider many risk factors when determining insurance rates, the single biggest factor is the age of the insured person and medical health and history. Younger individuals have lower mortality rates than older people or senior citizens, and life insurance rates are based on statistical probabilities that an individual will die during a certain time frame. Term life insurance rates are determined a little differently, since they only consider the term the policy is in effect, but age is important for determining rates on any type of life insurance, especially whole or universal policies, which are permanent.

Cheap Life Insurance Rates For Young Adults

In the absence of any congenital health issues, the cheapest life insurance rates by age are afforded to children. One way to guarantee the lowest rates for life is to buy a permanent life insurance policy for a child or infant. Permanent life insurance rates are based on the average life span of the person and their age when they buy the policy. Since the average person lives to between 75 and 80 years of age, life insurance companies charge less per year for children because they can expect to collect more premiums over the years. Consumers can expect to get whole life insurance for children, young adults or parents at very affordable rates.

Probabilities and Statistics

Mortality tables used by insurance companies reflect the number of people of a given age that die in a given year. For instance, if a mortality table shows that 2% of 25 year olds die before their 26 birthday, the company can expect that 2 out of every hundred 25 year olds they insure will die, and carriers set their rates accordingly. The same mortality table may show that 5% of 35 year olds die so life insurance rates by age for 35 year olds are thus higher to cover the increased number of claims in that age group.

To get specifics, consumers can compare life insurance rates online. By entering your zip code, we can provide free, instant life insurance quotes so you can compare companies, coverage, policies, and rates to learn more about the cost of life insurance for you and your family.

Spreading Life Insurance Risk Gets Cheap Rates

Insurance works by spreading the risk of financial loss among many people or policyholders. This applies to all kinds of insurance including home, health and auto insurance. While some people will suffer losses, most will not and the money collected from the majority pays for the losses suffered by the few individuals. Instead of charging everyone the same life insurance rates, companies weigh the risk of financial loss for each individual and those with the highest risk of loss pay the highest premiums, which is why life insurance rates by age results in seniors paying the most for insurance coverage.

Spreading The Risk Over Years

Term life insurance rates are determined by calculating the risk that an individual will die within the term of the policy. Since the risks increase with age, short term life insurance policies have cheaper rates than long term life policies. On the other hand, permanent life insurance bases rates on the anticipated life span of an individual versus his current age. Both types of life insurance consider mortality, but term life insurance is usually cheaper since payment of the death benefit is not guaranteed as it is in permanent life insurance policies.

However, life insurance rates should not be the only factor that determines which policy a consumer chooses. Though each type of policy has its own pros and cons, term life insurance is temporary, while whole life insurance offers permanent coverage with a cash value and investment component. Depending on your family?s needs and future financial goals, whole life insurance may offer the best coverage despite cheap term life insurance rates. The only way to be sure about the cost vs. benefit is to compare life insurance quotes online.

Life Insurance Quotes

Other risk factors that are considered when determining life insurance rates are family medical history, general health, lifestyle and habits, hobbies or occupations which could shorten an individual?s life span. Life insurance rates by age?never decrease so it makes sense to buy life insurance at the youngest possible age you can afford.

To help you find the best life insurance, LifeInsuranceRates123.com offers consumers free, instant life insurance quotes for all types of life insurance and from multiple insurance companies, so consumers can find the most affordable rates at any age.

By comparing life insurance rates online, you will avoid agents and customer representatives and be able to get quotes from the convenience of your home. Enter your zip code to start a life insurance quote now and find the best, cheap life insurance for your financial needs.

Source: http://www.lifeinsurancerates123.com/life-insurance-rates-by-age/

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