My brother will celebrate his 35th birthday this weekend! Being in the life insurance industry, I understand the significance of a milestone birthday and how it affects the premium a person will pay for a term life insurance policy.
How Age Affects Term Life Insurance Rates
You see, the young people of the world generally enjoy very inexpensive term life insurance premiums. If you are in your 20’s or early 30’s, you may not see an increase in premiums from one age to the next for a new policy. And, of course, once you purchase a policy, your premium will be ‘locked in’ and guaranteed not to increase for the duration of your policy (i.e. 10, 15, 20, 25 or 30 years). That’s why it’s best to purchase a new term life insurance policy sooner rather than later.
However, at around age 35 or so, you will see premiums on a new policy start to increase every year. Each year you wait will cost you a little more once you lock in that premium. You can see this in action using the quotes below for a healthy male, non-tobacco user, $500,000 coverage, and a 10 year term at a range of ages.
As you can see from the table, age 35-36 seems to be about the time life insurance companies begin to up the ante. Many of our customers say they wish they had purchased term life insurance when they were younger! While it may be too late for some of you to enjoy the super-low rates of the younger years, it’s still better late than never! You may be surprised how inexpensive term life insurance can be at any age.
And remember, it may be the perfect time for your adult children to take advantage as well.
Maybe I will get a term life insurance policy for my brother as a birthday present. It’s just what every guy wants, right?
Happy Birthday, my dear brother!