There are a lot of factors that go into determining life insurance rates. Lifestyle choices, tobacco use, even hobbies and jobs. But do you know the number one factor that life insurance companies look for? Your age. Your birthdate is the primary factor in determining your life insurance rate. Life insurance benefits young adults more than they think. It’s also cheaper while you’re young. The older you get, the higher the chances an insurer is going to have pay out on your policy, causing your premiums to increase. Here’s what you need to know about how your age affects your life insurance premiums.

Care for Loved Ones

Life insurance is a great way to make sure your loved ones are cared for financially long after you’re gone. Even if you’re young, your life insurance policy can help with funeral expenses and can be used to pay off any debts you may have left behind.

Unlike home or auto insurance, your rate when you sign a life insurance policy won’t change during the term. But, as you get older, life insurance rates begin increasing by an average of 8-10% a year and keep rising as you get older. Also, you are typically healthier when you are younger, which will also help you get your best rate.

It Is Cost Effective

The best reason to buy a life insurance policy while you’re young is that you’ll get the same coverage for a much lower price than what you’d pay if you were older. You’ll pay the same premium when you take out a policy until the term is up (which could be 20 or 30 years from now).

Plan for the Future

If you don’t have any dependents now but think you may in the future, it’s a good idea to start planning for their futures now. If you don’t plan on having any dependents; it can still help your family in the future. If you have any outstanding debts like a mortgage or house payment, it can help pay off your debt so your family isn’t burdened if you pass unexpectedly.

Starting a Life Insurance Policy

Usually it doesn’t make sense to wait and buy coverage when you’re older. The earlier you start the plan, the better off you’ll be. If you don’t know where to start, a good place would be a life insurance calculator. This will help you estimate about how much coverage you will need.

After you have your amount, you can start scouting for different buying options. It’s a good idea to check with your employer first to see if they offer any with your benefit package. Then, when you have a better idea of the basics, you can branch out.

Reaching out to your Farm Bureau agent is a great next step to getting your policy. They will help walk you through different options and help you find the best option for you. No matter your age, if you don’t have life insurance in place, today is a great place to start the conversation.