TAMPA,
Fla., June 27, 2024 /PRNewswire/ -- A recent
report on term life insurance quotes published by
QuickQuote.com revealed that a 20-year term life insurance policy
for a 25-year-old is less than half the cost of the same policy for
a 45-year-old.
Getting the longest available term life insurance policy when a
person is young can save them thousands of dollars in premiums in
the long run.
Life Insurance Premiums and
Age
Life insurance premiums are based on a person's risk. Age is one
of the biggest risk factors, since the older a person is, the
higher their risk of death and the insurance provider paying a
death benefit.
That's why a male can purchase a 20-year, $500,000 policy for $35 a month as a 25-year-old, but someone 20
years older would pay $79 a
month.
The older someone becomes after 45, the drastically more
expensive it can be to purchase a term life insurance policy, to
the point where it's not worth the premium.
Demographic Needing Term Life
Insurance
Another reason for people to buy term life insurance while
they're young is that is when the safety net is most necessary.
People in their 20s and 30s tend to have more debt than assets. If
an individual purchases a home, they will likely owe the mortgage
lender the majority of the home's value.
People in their 30s and 40s tend to have the most dependents.
Without their parents' or guardians' income, children don't have
the resources to pay for their lifestyle.
Debt and dependents necessitate term life insurance, which is
the most cost-effective type of life insurance.
Risk Factors for Life Insurance
Besides Age
While age is one of the biggest determining factors for life
insurance premiums, there are several other factors related to
risk, according to QuickQuote.com:
- Age
- Gender
- Height/Weight
- Medical History
- Occupation
- Tobacco use
Melanie Musson, a nationally
recognized life insurance expert with QuickQuote.com, explains,
"Insurance providers use risk factors to balance an individual's
desire for coverage and the insurance company's need for
profitability." An insurance company that goes bankrupt can't pay
claims.
Read QuickQuote.com's entire report here: Term Life Insurance
Quotes.
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SOURCE QuickQuote.com