Why your age is important when it comes to life insurance.
When you go to secure life insurance, the insurance company will take various personal factors into account. One of the major things that they will consider is your age. But why is age so important when it comes with life insurance? Here’s what you need to know.
Age and Health
In general, younger individuals pay less for life insurance is because they tend to be healthier than older applicants. Generally, the older you get, the more likely you are to develop health conditions such as:
- Heart Disease
- High Blood Pressure
- High Cholesterol
- Chronic Obtrusive Pulmonary Disease (COPD)
- Kidney Disease
When you have serious medical conditions, you are more likely to develop life-threatening complications and have a shorter life expectancy. Naturally, this makes you higher-risk to insure. While not all older individuals have medical conditions, insurers will consider them more likely to develop them than a younger applicant. As such, older individuals will be charged more for their life insurance coverage.
Why Younger Equals Lower Rates
Term life insurance is particularly time-sensitive when determining your rates. This is because term life insurance only covers you for a specific period of time and, the closer your coverage expiration date is to your life expectancy, the more it will cost you. When you are young, your life expectancy is so far away that you are considered very low risk to insure. As a result, you are offered cheaper rates. The older you are, the closer you are to your life expectancy. This means a higher risk of death during your coverage period and, therefore, higher premiums.
Here’s how your age affects your life insurance. Do you have further questions regarding your life coverage? If so, then contact the experts at Steve Wilk Insurance for assistance today. Check out our new office at 310 S Main Street, Suite C, Lombard, IL 60148.