How Does Age Affect Life Insurance?

Feb 5, 2021 1 min read

There are a lot of factors that go into determining life insurance rates — lifestyle choices, tobacco use, even hobbies and jobs can all affect your life insurance rate. But do you know the No. 1 factor that life insurance companies look for? Your age. Your birthdate is the primary factor affecting your life insurance rate. 

Here’s what you need to know about how your age affects your life insurance premiums.

How Age Affects Life Insurance

Life insurance is a great way to make sure your loved ones are cared for financially when you’re gone. But typically, life insurance increases as you get older, usually by an average of 8-10% each year. That’s because the older you get, the higher the chances are an insurer is going to have pay out on your policy, causing your premiums to increase. Also, you are likely healthier when you’re younger, which helps you get a lower rate.

At What Age Should You Get Life Insurance?

Even though life insurance rates are generally cheaper when you’re younger, most people don’t get life insurance when they’re young — often because they don’t think they need it. The reality is life insurance can benefit people of all ages and lifestyles. Even if you’re young, your life insurance policy can help with funeral expenses and can be used to pay off debt you may leave behind. If you don’t have any dependents now but think you may in the future, getting a life insurance policy is a great way to start planning for their futures now.

Plus, unlike home or auto insurance, your rate when you sign a life insurance policy won’t change during the term. That means you’ll get the same coverage for a much lower price than what you’d pay if you were older — and you’ll pay that same premium until the term is up (which could be 20 or 30 years from now).

Getting Started

If you’re interested in buying a life insurance policy, our life insurance calculator is a good place to start. This tool will help you estimate about how much coverage you will need.

After you determine the amount of coverage you’ll need, you can start scouting for different buying options. It’s a good idea to check with your employer first to see if they offer a life insurance policy as part of your benefits package. Keep in mind employer-sponsored plans generally have low coverage amounts, so make sure this option is sufficient for your needs. If you need more coverage, you can always supplement the coverage with a separate policy.

We Can Help

Your Farm Bureau agent can help you get the right life insurance coverage at the right price. No matter your age, today is a great time to start securing your financial future.

Want to learn more?

Contact a local FBFS agent or advisor for answers personalized to you.

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