An applicant’s age is the single most important factor when it comes to determining an individual’s life expectancy and risk towards the insurance company.
In order to place an applicant into the proper risk classification for a life insurance policy, an insurance company needs reliable information about every risk factor that might affect an applicant’s longevity.
Except for the first few years of life, resistance to disease and injury weakens with age while the probability of death increases.
Once an insurance company receives the applicant’s information – including their age, they will take that information and base it off the average person that age to determine insurability and expected longevity.
Here is an online calculator to determine your longevity.
Generally speaking, the younger you are, the less expensive life insurance is for you but that shouldn’t deter you from shopping around for the best policy at the best price that covers all of your life insurance needs.
Unfortunately, younger individuals are less likely to think about life insurance as, statistically speaking, they have a longer life to live. But, securing a life insurance when you are young and healthy could be the best decision you could make, as your debts are likely to be the highest and you have a young family to protect.
Younger applicants are also more likely to secure a lower life insurance premium, as the insurance provider will most likely collect premium payments for a longer period of time than someone who is older.
A similar rational could be used to explain why older applicants will face high life insurance premiums as statistically speaking they are more likely to pass away from natural causes than a younger person. Older applicants are also more likely to develop poor healthy conditions and/or contract a fatal disease than younger applicants.