Your age and your life insurance policy.
Life insurance premiums are based on two major factors: age and health. All other factors being equal, the younger and healthier you are, the cheaper your life insurance policy will be. Many people are unaware of this, which means that they wait until they are older and possibly have health conditions before securing coverage. Securing a policy while you are young means that you lock in affordable rates and protect your loved ones and finances.
Term life insurance is especially sensitive to age when determining rates. This is because it is covering you for a specific amount of time. That means that the closer your life insurance period expires to your life expectancy, the more the coverage will cost you. When you’re young, your natural life expectancy is so far away. As you near it, you are considered a greater risk to the insurance company of having to pay a claim. As your risk goes up, so do your premiums.
Your age will also make a difference in how much coverage you require. For example, if you are 25 and hope to retire at 65, you have 40 years of work – and 40 years of income – ahead. This requires a greater amount of coverage than someone who is 45 with only 20 years left of work. You want to be sure that your family doesn’t miss out on valuable years of income, even if you are no longer around.
Make sure you have the right life policy that steps in when your family needs it the most. Talk to a trusted life insurance advisor to determine your policy and coverage exactly. Contact Donald Weiss Insurance Services to get started on your coverage today.
