Examples of Life Insurance Policies by Age
Posted in General Life Insurance Information last updated on March 3, 2022When it comes to buying life insurance, the most crucial factor influencing your rates is age. While there are plenty of other elements that can raise or lower your premiums, the older you are, the higher they’ll be.
Although it’s better to get a policy when you’re relatively young, don’t get discouraged. Life insurance is always a smart decision, no matter how old you are. That being said, it’s critical to understand what to expect at different life stages so that you make an informed decision for both yourself and your family.
In this article, we’re going to outline the different ways that life insurance policies can change by age and what to consider when choosing a policy. While your premiums will likely influence your decision the most, you want to be sure that you’re getting the right coverage for your loved ones. Whether you’re 30 years old or 80, here’s what you need to know about life insurance and age.
The Basics of Life Insurance Policies
Before we dive into the different options and challenges you might face at different ages, it’s crucial to understand how life insurance works. Yes, a policy is designed to provide financial security to your beneficiaries when you die, but there are other benefits to it as well. Depending on your situation, you might want to leverage your coverage for other advantages, such as planning for retirement.
Here are the essential components of life insurance that you should consider when making a final decision.
Term Life Insurance
This is the purest form of coverage, and it’s the easiest to understand. All you have to do is choose a time (i.e., 20 years), a death benefit amount (i.e., $50,000) and a beneficiary. Term life insurance is the cheapest option, but once the term expires, you no longer have coverage.
Whole Life Insurance
In this case, there is no end date for your policy. As long as you keep making monthly payments, you’ll be covered. Whole life insurance is more expensive than term, and the rates will be adjusted regularly according to your age and health.
One advantage of whole insurance is that you can receive living benefits, such as a cash value. You can borrow against your policy or use it to pay off premiums during retirement.
Universal Life Insurance
This is a form of whole life insurance, but it offers more flexibility with its cash value fund. You can contribute more money to your policy each month, and you can invest the money more aggressively. Universal life insurance is designed for those who want to capitalize on their coverage as much as possible.
Other Factors That Influence Your Policy Besides Age
While age is a significant factor that can raise your premiums, life insurance companies like to get a comprehensive understanding of your situation before offering a policy. Typically, term insurance is the easiest to qualify for since it doesn’t build equity. Still, risk factors like diabetes or smoking can raise your rates substantially or get you declined altogether.
Although each insurance company is unique and factors these components differently, here are the most common elements that can affect your premiums.
- Family and Medical History – If your family has a history of debilitating illness such as heart disease, that can put you in a higher risk category. If you’ve had surgeries or recovered from significant health problems, that will raise your rates.
- Current Health – Insurance companies want to insure healthy people as much as possible. If you have chronic conditions or significant illnesses (i.e., diabetes), you may have trouble getting coverage.
- Occupational Factors – Some jobs are riskier than others, such as law enforcement, coal mining, or scuba diving. Those with high-risk professions may not be able to get affordable life insurance.
- Risky Habits and Hobbies – Habits that can raise your rates or prevent you from getting covered can include smoking and drinking. Hobbies that might increase your premiums could be skydiving, hang-gliding or racing.
- Sex – Finally, your sex can influence your premiums, even if you’re young and healthy. Men often pay more than women, so keep that in mind.
While you may be able to control some of these factors, others are out of your hands. What’s critical to remember is that coverage is almost always possible, but it will just be more expensive.
Also, be sure to compare rates and options with different companies. Some insurers specialize in coverage for high-risk individuals, which means that you don’t have to settle for high prices and limited benefits. Getting declined isn’t the end of the world; it just means you have to search elsewhere for a policy.
By the Numbers: Examples of Life Insurance Policies by Age
Now that we’ve covered the basic elements of life insurance, let’s look at how plans can change depending on your age. Not only will we discuss price points, but we’ll go over what you could be doing with your policy to maximize its potential.
All prices listed are averages to give you an idea of what you might be paying. Individual insurers may offer lower rates, depending on your needs and situation. Also, if you choose a smaller death benefit, you’ll pay less regardless of other factors.
Life Insurance at Age 30
By this age, you may have started planning for the future, including milestones like getting married, having children, and buying your first home. With so many elements to consider, life insurance is a smart choice to protect the ones closest to you. As your bills increase, you have to be sure that your significant other and/or children are financially covered if you died.
Fortunately, because you’re relatively young, you’ll have plenty of options for coverage. If you decide to get whole life insurance, now is the time to consider retirement planning. While your policy’s cash value shouldn’t be your primary source of income during retirement, it can help cover expenses once you stop working. Also, consider building value to pay for things like a down payment on a house or to help cover college costs for your children.
Term Rates for Men Aged 30
Coverage: $250,000
Term: 20 years
Price: $150 per year
Coverage: $500,000
Term: 20 years
Price: $229 per year
Coverage: $250,000
Term: 30 years
Price: $223 per year
Coverage: $500,000
Term: 30 years
Price: $368 per year
Term Rates for Women Aged 30
Coverage: $250,000
Term: 20 years
Price: $133 per year
Coverage: $500,000
Term: 20 years
Price: $195 per year
Coverage: $250,000
Term: 30 years
Price: $191 per year
Coverage: $500,000
Term: 30 years
Price: $307 per year
Whole Life Insurance Rates for Men Aged 30
Coverage: $250,000
Price: $2,145 per year
Coverage: $500,000
Price: $4,235 per year
Whole Life Insurance Rates for Women Aged 30
Coverage: $250,000
Price: $1,904 per year
Coverage: $500,000
Price: $3,753 per year
Life Insurance at Age 40
Typically, once you’ve reached 40, you should have achieved one or more milestones. You might be married, own a house and have one or more children. Around this age, you might also be settled into your career of choice, which means that the likelihood of moving for work is relatively low.
If you haven’t started planning for retirement, now is the time to do so. Do you want to retire early, or continue to work past 65? Ideally, you’ll have a choice, but that’s not always the case. Fortunately, you still have time to build substantial cash value with a whole or universal life insurance policy, so consider your options and talk to a financial advisor.
Pay attention to any health issues that might flare up during your 40s. If you have any family history of heart disease, cancer or diabetes, stay on top of checkups and be sure to adjust your diet and exercise regimen accordingly. The healthier you are, the lower your rates will be.
Term Rates for Men Aged 40
Coverage: $250,000
Term: 20 years
Price: $210 per year
Coverage: $500,000
Term: 20 years
Price: $344 per year
Coverage: $250,000
Term: 30 years
Price: $340 per year
Coverage: $500,000
Term: 30 years
Price: $603 per year
Term Rates for Women Aged 40
Coverage: $250,000
Term: 20 years
Price: $180 per year
Coverage: $500,000
Term: 20 years
Price: $293 per year
Coverage: $250,000
Term: 30 years
Price: $280 per year
Coverage: $500,000
Term: 30 years
Price: $485 per year
Whole Life Insurance Rates for Men Aged 40
Coverage: $250,000
Price: $3,191 per year
Coverage: $500,000
Price: $6,328 per year
Whole Life Insurance Rates for Women Aged 40
Coverage: $250,000
Price: $2,766 per year
Coverage: $500,000
Price: $5,478 per year
Life Insurance at Age 50
As you get closer to retirement, you need to start saving as much as possible. Ideally, your children will already be grown or close to grown, which means that they won’t be as dependent on you and your spouse. That being said, if your kids are off to college, you’ll likely be helping them pay for tuition and other expenses.
At this point, you likely won’t be able to build significant cash value in a whole life insurance policy. However, if you can contribute extra to a universal plan, you might make some decent equity by the time you retire. Also, if you want to maintain coverage throughout your golden years, whole life insurance can give you peace of mind.
That being said, a 30-year term plan may be sufficient for your needs. Realistically, your financial responsibility to your loved ones might not be as significant once you reach age 80, so paying for life insurance might not be necessary.
Term Rates for Men Aged 50
Coverage: $250,000
Term: 20 years
Price: $465 per year
Coverage: $500,000
Term: 20 years
Price: $842 per year
Coverage: $250,000
Term: 30 years
Price: $811 per year
Coverage: $500,000
Term: 30 years
Price: $1,509 per year
Term Rates for Women Aged 50
Coverage: $250,000
Term: 20 years
Price: $364 per year
Coverage: $500,000
Term: 20 years
Price: $653 per year
Coverage: $250,000
Term: 30 years
Price: $616 per year
Coverage: $500,000
Term: 30 years
Price: $1,139 per year
Whole Life Insurance Rates for Men Aged 50
Coverage: $250,000
Price: $4,990 per year
Coverage: $500,000
Price: $9,927 per year
Whole Life Insurance Rates for Women Aged 50
Coverage: $250,000
Price: $4,262 per year
Coverage: $500,000
Price: $8,470 per year
Life Insurance at Age 60
Now that retirement is just around the corner, you need to readjust your living expenses. If you’ve been paying for whole insurance this entire time, you might decide to reduce your coverage so that your premiums won’t be as high. If you’re thinking about getting a whole policy now, it’s worth it to weigh the pros and cons.
At this point, you might decide to invest in long-term care insurance. The costs of assisted living facilities can be prohibitive for most individuals, so having insurance can help mitigate these expenses. However, the price of premiums for long-term care insurance is also high, so keep that in mind when planning for retirement.
Another thing to consider at this age is burial insurance. This policy is smaller than a standard term plan, and it provides financial relief for burial and funeral expenses. In some cases, you may even pay off the policy before you die, which means that it’s locked in for life.
Term Rates for Men Aged 60
Coverage: $250,000
Term: 20 years
Price: $1,254 per year
Coverage: $500,000
Term: 20 years
Price: $2,372 per year
Term Rates for Women Aged 60
Coverage: $250,000
Term: 20 years
Price: $908 per year
Coverage: $500,000
Term: 20 years
Price: $1,659 per year
Whole Life Insurance Rates for Men Aged 60
Coverage: $250,000
Price: $8,168 per year
Coverage: $500,000
Price: $16,318 per year
Whole Life Insurance Rates for Women Aged 60
Coverage: $250,000
Price: $7,015 per year
Coverage: $500,000
Price: $13,977 per year
Life Insurance for those 70+
Now that you’re fully in retirement, life insurance might not be as necessary as it was before. Whole insurance policies are going to be out of reach, and many insurance companies won’t offer term rates for those in this age bracket.
Instead, your best options are to get burial insurance or guaranteed acceptance coverage. The latter is quite pricey, so we recommend avoiding that if possible. However, if you have no other options and need to provide for your loved ones, guaranteed acceptance plans can offer peace of mind.
Depending on your health, you may qualify for preferred rates with no waiting period. Otherwise, you typically have to wait two years for full benefits to kick in. So, if you die before the two years are up, your loved ones will receive a reduced death benefit.
On average, burial insurance is between $100 and $150 per month for women and men, respectively. Also, since your death benefit will be relatively low (often capped at $25,000), you don’t have to worry about rates climbing as you get older.
Contact NextGen Life Insurance Today
Comparing life insurance policies can be exhausting if you don’t know what you need. At NextGen Life Insurance, we make it easy to compare rates and coverage options so that you can get the peace of mind you deserve. Call us today to find out more.