Why Do Life Insurance Premiums Increase With Age?

  1. 63333 POINTS
    Peggy Mace
    Most of the U.S.
    The reason that life insurance premiums go up with age is because mortality rates go up the longer someone lives. When someone buys a 10 year term life insurance policy at age 20, the rates will not be much higher than at age 30, because the death rate for 30-40 year old persons does not vary much. However, the rates for a 10 year term policy will be much higher for a 60 year old person than a 50 year old person, because mortality rates go up a lot between ages 60-70, especially for men.
    Answered on August 8, 2013
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