A Study of Term Life Insurance Rates By Age

You must plan adequately for the future going in for a term life insurance policy. This type of insurance is usually taken for a specific period of time. It makes a lot of sense to plan in advance as to how you would be allocating your finances. Most companies offer term life policies for a maximum period of 35 years. If you get a policy at the age of 35, then the insurance would be valid until you turn 70 provided you have been punctual with your premium payments. This guide will give you a better understanding of term life insurance rates by age.

The rates of premiums of your term life policy can vary vastly depending on your age. If you apply for a 20-year policy as a 30 year old, then you stand a good chance of getting your insurance at much lower rates. This is because the company sees your investment as a long-term business proposition with minimal risks. Assessing term life insurance rates by age means that the older you get, the higher the chances the company would have to make a payout.

In the short term younger people can get good deals on their term life policies because the insurance company thinks on the following lines :

• Being young means that the individual is in a better state of health
• There is a lower risk of company being filed for claims

 Other factors that determine your premium rates are your medical history and nature of employment. The insurance company would conduct a medical exam on the applicant to determine the overall health status of the individual. If the applicant is known to be suffering from some known medical condition – it may have an impact on the premiums of your policy. They also take into account your families medical history. They check for any possible history of hereditary diseases such as cardiovascular diseases, cancer or other medical conditions.

If the individual is deemed to be in perfect physical health then they may be placed in the preferred plus class which offers the lowest premiums on term life products. It should be noted that only 10% of applicants manage to qualify for this class. The rest would succeed based on their insurance ratings.

 Other factors that are often taken into account are the working conditions the applicant is involved in. If the investor is part of a work atmosphere that is either hazardous or life threatening, it might have an impact on their term life policy. Dangerous hobbies like dare devil sports might also result in higher premium rates for the investor.

A comparison of term life insurance rates by age

 The price of term life policies increases as you grow older. The price of a policy for a 35-year and a 45-year-old person might vary vastly on this basis. The insurance company analyse term life insurance rates by age and the level of risk before making the candidate eligible. The price of insurance would spike for a 65 year person with severe medical complications as there are several health risks involved.

 For instance a 50 year old non smoker born in the year 1963 buys a 20 year term life policy for $500,00, the rate of yearly premiums would be set at $935 approx.

When a 60 year non smoker born in the year 1973 buys a 20 year term life policy for $500,00, the rate of yearly premiums would be set at $2,600 approx.

 Even a ten-year age gap can result in a substantial increase in the premium rates of your term life policy. The rates might end up being many times more than what you would have been charged had you been ten years younger.

 Another factor that plays a role in the rate determination of your policy is the basic underwriting guidelines adopted by the insurance company. Each company has their own set of guidelines which their team of underwriters follow. There can be a lot of price discrepancies between competing term life products for the same age group.

 It would be a good idea to go online and check for multiple quotes on term life insurance by age from a host of websites. Use comparison the tables available in the sites to develop a deeper understanding of the various policies on offer. Shortlist the ones that suit your profile the best. Following that, visit the company websites of these insurance products to get more accurate quotes. Make comparisons and study them again before you select the most suitable term life insurance policy.

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