How does my age affect my life insurance premium?

Your age is one of the most important aspects that affects the premium for any given type of life insurance policy. (Other important aspects include the level of cover you want, whether you are male or female, whether you smoke, your job and health record.)

When an Insurance Company considers whether to insure you it needs to assess the likelihood of you making a claim. After all, their business is based on making a profit and they will only do that if they receive more in premiums than they pay out in claims.

It is clear that the older you are, the more likely you are to die or to become seriously ill. In this context, the Insurance Companies looks at your age in two ways – your age when you first take out the policy and your age when the policy is planned to expire. This is essentially your age range during which the life insurance company is at risk of having to meet a claim. Basically, the longer the age range, the higher the risk to the insurance company and the higher will be their premiums.

Most Insurance Companies will insure people up to the age of 65 but very few will go beyond. Virtually none will insure over 70 years of age.

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