How your age can directly influence your life insurance.
Generally, life insurance premiums are based on two major factors: your age and health. All other factors being equal, the younger you are, the cheaper your life insurance premium. This is because insurers determine the premium based on risk. Statistically, the younger (and supposedly healthier you are), the lower the chance of you dying. However, even if you don’t consider yourself “young” it’s still possible to get cheap life insurance.
If you don’t already have life insurance, the most affordable time to buy it is now! After all, you will never be younger than you are right now. As you age, you become at risk of facing higher premiums. Ironically, the youngest adults seem to think they don’t need it until far down the road, while older buyers wish they would have locked in an affordable rate years ago.
Your Age and Coverage
Your life insurance coverage amount you decide on is somewhat tied to your age as well. Life insurance is designed to replace your income after you pass or to pay off any remaining debts that your family might insure or already have to deal with. If you are 25 years old and are expecting to work until you are 65, your family would miss out on 40 years of your income if you were to pass away now. If you are 45 and expect to retire at 65, your family would miss out on 20 years of income.
If you are young and expect to be working for a few decades, you may want to stock up on your life insurance now, especially if the premiums are going to be low. If you are already in your 40s and 50s, you may need less insurance because your debts should be decreasing, you have fewer years left to work, and your premiums will increase with age.
Regardless of your age, you should take the time to calculate your life insurance needs before you buy a plan.
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