Term life insurance is some of the most straightforward coverage available. It’s commonly offered for a specific length of time or “term” extending 10, 20, even 30 years. As a whole, term life insurance is generally less expensive than other types of life insurance protection and it’s easy to secure. So what’s the trick to finding a policy you can afford? Well, for one thing, term insurance rates are impacted by age, meaning a 10 year policy for one person may cost something completely different than for someone else. With this in mind, it makes sense to search for term insurance rates by age to secure the best deal.
Why Term Insurance Rates are Impacted by Age
Insurance companies use age as a primary variable to determine premium rates with the understanding that the younger you are, the healthier you are and the less likely you are to rely on the term death benefit. That’s a generalization, but companies place a higher risk with those individuals who are older. For instance, if you are a healthy 30 year old, you will be more likely to find a lower rate for a 20 year term policy than someone looking for the same coverage at 50. Insurance companies set term insurance rates by age simply because younger people pose less of a risk.
There Are Other Variables to Consider Besides Age
The good news is, even if you are older, there are other factors that impact term insurance rates. Often, insurance companies will look at your medical records and review family history to see if you have a predisposition to develop a chronic disease. They will also look at your weight to determine whether or not you are obese, which often leads to more serious health conditions down the road. In some cases, they will review your lifestyle to determine if you frequently engage in dangerous or hazardous activities like sky diving or deep sea diving.
Finding Coverage to Fit Your Needs
Term life insurance is still the most cost effective option for protecting loved ones with a quality life insurance product. Remember, search for term insurance rates to find a policy that will offer you the most value for your purchasing dollar. Compare rates between companies and make an informed decision. After all, you’re probably only going to need life insurance once- make the smart choice with the right policy now and get peace of mind later with protection you trust.