Life Insurance Rates By Age
Your Ultimate Guide to Birthdays!
Are you interested in life insurance rates? Of course you are! One of the biggest factors that underwriters assess when when you apply is your age.
Psst underwriters are the people that are employed by life insurance companies to decide how much you pay every month for coverage.
So as you can imagine – the younger and healthier you are the less your premiums cost.
But that’s not the whole story. We put together this handy guide to help you navigate life insurance rates through the decades. Check it out!
Life Insurance Over 80!
When looking at life insurance rates by age, we are working backwards. That’s because there’s less risk for younger people which means cheaper life insurance rates and more available products.
So is life insurance over 80 even possible? Well, yes and no. The truth is, life insurance options shrink dramatically once you’re past the age of 80. And above the age of 85, there are no options whatsoever.
In Canada, only 3 or 4 traditional carriers underwrite seniors in their 9th decade. But before you get your hopes up, it is very difficult to qualify for this coverage as you have to be healthy. Let’s face it, how many octagenarians do you know that don’t have any mild to moderate health issues?
What about no medical life insurance? There is only one no-exam product in Canada available to seniors age 81 to 85. And as you can guess, it’s permanent insurance, purchased to cover final expenses. And yes, it’s very expensive.
For example, if you’re an 84-year-old male, a $10,000 Assumption Life Golden Protection policy will set you back about $306.82 per month.
Needless to say Term coverage isn’t available for this decade.
Life Insurance for People Over 70!
If you’re looking to get life insurance in your 70’s you’re in luck, you still have quite a few options. But don’t put it off too long, because if anything changes with your health, you may end up paying more or fail to qualify altogether.
The good news is you can still buy term and permanent coverage.
So what’s available?
You can buy:
- 10 year terms until you’re 75
- 20 years terms until you’re 65, unless you go with Industrial Alliance & Assumption Life, in which case, you can still purchase a 20 year term policy.
For the most part, many clients in their 70’s are looking for life insurance to cover funeral costs. That said, there are other reasons people have come to me to apply for life insurance at this stage. Here are some real-life scenarios:
- They want to leave a parting financial gift for a family member
- A family member has special needs and they are planning ahead
- They would like to leave a charity some cash
- Business purposes
- There is an outstanding loan and they want to cover it just in case
Life Insurance Rates By Age: Policy Architects Advice:
I typically recommend permanent life insurance at this point in life. Technically you can buy a 20 year term from Industrial Alliance or Assumption Life but the premiums are going to be COSTLY. The truth of the matter is at this stage, you want a guaranteed payout and permanent insurance gives you that. Not to mention, the cost differential between term and permanent shrinks as we get into our 60’s and 70’s.
Inexpensive Life Insurance Over 60!
The best news? Standard rates are available even if you have a history of elevated cholesterol and blood pressure as long as it’s well controlled.
Here are some important points to note when looking at life insurance rates over the age of 60:
- Women pay less for insurance than men (this is true at every age – because women live longer)
- The younger you get your insurance in place. Once you’re in your 60’s premiums go up about 5 to 8% every year depending on the carrier and coverage type.
- Some insurers stop offering 20-year term past your 60th birthday
The ’60s is a sweet spot for life insurance. You can still purchase a 10 year, 20 year and 25 year term policy. Although the rates are higher than when you were in your 50’s, they are still be manageable.
If you’re looking farther ahead – many of us don’t like to think about funerals – your 60’s is a great time to purchase an affordable burial insurance policy. Taking care of this now saves you thousands of dollars in premiums vs waiting until you’re in your 70’s.
Now do you see why life insurance rates by age is so important?
Inexpensive Life Insurance Over 50! Life Insurance Rates by Age
50 is a big birthday. It’s amazing how quickly time flies. One minute you’re 20 something and the next you’re heading into senior territory.
…but I am pleased to tell you that if you’re looking for inexpensive life insurance over 50 you’re in luck!
It’s so important to get the word out that life insurance coverage doesn’t have to break the bank. Even as you get older.
I think if more people realized how truly approachable it is they wouldn’t be without it.
At the end of the day, life is temporary. I’m not into fear-mongering to sell life insurance, but the facts speak for themselves.
Medical Conditions and Aging - What Impact Does It Have on Life Insurance?
It’s not something people want to talk about, but our health breaks down as we age. The 50’s are a notorious period for people to develop medical issues.
Everything from elevated cholesterol and blood pressure – to type 2 diabetes. Ugh!
So what does this mean for your premiums? Well, I’m here to share some good news with you! Underwriters are primarily concerned about you kicking it before the end of your term.
Which means they charge more money as that risk rises.
If you have a well-controlled condition it may have minimal impact on your premiums. Yes, you heard me right.
Being diagnosed with Diabetes Type 2 isn’t the end of the world and if it’s under control you may even get standard rates!
That’s because your prognosis is good.
Please don’t let a pre-existing medical condition keep you from getting coverage.
You may be surprised by just how healthy you really are.
DING DING DING!
Life Insurance Birthdays: Age 55!
While medical issues do impact your rates, it’s often much less than you anticipate. Most people are healthier than they think.
It’s also important to pick the right insurer for your particular condition…
…AND don’t forget to keep an eye out for important life insurance birthdays. 55 is one of them! If you want 30 year term be sure to contact Policy Architects BEFORE then.
NOTE: Your actual birthday may not be the life insurance cut off you think it is…more on than soon.
Inexpensive Life Insurance for Over 40! Tell Me MORE!
Many people in their 40’s have kids, a mortgage, debt and car payments.
Of course, that’s not everyone, but if you fall into this category chances are people rely on your pay check to pay the bills.
This is a terrific time to buy life insurance coverage. It’s likely you are fairly healthy which means that premiums are super affordable and term 30 is available throughout this decade.
In fact, a few carriers offer term 40 as well which is available up to your 45th birthday.
People are living longer, having children later in life, divorcing, having second families and launching second or third careers.
This translates into financial obligations extending into your later years. Which means a longer period of coverage may come in handy.
The thing is, bills don’t cease when you die. They continue to roll in and if your loved ones don’t pay them they lose their home – and everything you worked for.
“A Starbucks freak’n latté is, like, $4,” says Lisa Tatem, a money coach in Toronto, who helps clients learn how to tackle their finances. “You know, if you get one of those a day, it really adds up.” No kidding. Tatem points to one client who used to spend $250 a month at Tim Hortons. “That’s about $3,000 a year. You could buy a couch with that. You could buy a TV. You could do so many things with that money,” she says.
$500K of Protection for the cost of a cup of coffee and the occasional muffin?
Let’s use a real-world example. If you buy that $4.00 latte at Starbucks (actually, it’s more like five dollars!) 5 days a week and 2 days a week you add a muffin which costs about $3.00…
…over the course of a month, you’ll shell out about $104.00. This figure doesn’t count tips, sandwiches or any other extras.
Now compare life insurance coverage. For a $500,000, 30-year term policy, a 40-year-old man in standard health pays about $95.00 per month and a 40-year-old woman shells out just over $70.00 per month.
Wow! You can provide 30 years of protection for your family for less than the cost of some lattes and muffins. It really puts things into perspective.
I am reiterating my point that all of these rates are standard which means if you are in better health they are even cheaper!
Inexpensive Life Insurance for Over 30!
So how about life insurance in your 30’s? In my opinion, this is one of the best times to get coverage.
This is the point when a lot of people settle down to have a family. Taking on new responsibilities costs you money. Mortgages, loans, debt – the cycle begins.
Sure maybe you have a great paying job, but chances are you need that paycheck to keep rolling in if you want to maintain your lifestyle.
The good thing is if you’re young, fit and healthy life insurance is uber cheap…
…and if you get a long term it covers you through your most vulnerable periods.
Many clients speak to me about life insurance at this juncture and typically I suggest they opt for a 30 year term so they can take advantage of the terrific rates available.
Did you know, 40-year term policies are also available?
Always Remember Your Circumstances Change
If you’re a 39-year-old woman you can get $250K of coverage for 30 years and it costs about as much as going out for a meal once per month.
That being said, there’s a catch! For this age group, one of the biggest issues I face is people failing to look at the reality of their financial situation.
There’s a certain denial about how much money it takes to keep a home running. Many of us are burdened with huge mortgages – so what happens if the main breadwinner just STOPS contributing one day.
$250K sure sounds like a boatload of money when you’re first starting out. I mean seriously most of us only dream of this sort of cash.
Even after a needs analysis it still may seem sufficient to cover your costs…
….but life changes and so do your circumstances. If you’re going to get a 30-year term you need to factor that in. Let me show you what I mean.
That $250K of Coverage May Leave You Underinsured!
For example, if you’re a medical resident you make about $50K per year. Years later you may opt to specialize in cardiology which means you may make up to $350K if you’re well seasoned.
The needs of the resident are far different from those of the cardiologist. This, of course, is an extreme example but you get what I mean.
It’s important to grab good rates when you can. If you need to downsize it’s easy to do with term as you have no obligations – but once you get older you can’t turn back the hands of time.
Term 10 Exchange Option - Ideal for Early 30's
There’s one strategy I recommend to clients in their early 30’s who aren’t sure what life has in store but want to make sure they’re insurable moving forward.
It’s the term 10 exchange option.
Many carriers have a term 10 exchange feature which means you’re eligible to swap out your term 10 for a term 20 or term 30 within the first 5 policy years.
The best part? You can do so without providing any medical evidence or being tested again.
So when money’s really tight and you anticipate your insurance needs growing in the coming years, consider buying a cheaper $1 million term 10 policy now.
Knowing it can be exchanged for term 20 or 30 within 5 years, you have the flexibility of lengthening your coverage without paying higher costs in the short term.
When you exchange it, just keep in mind you pay whatever the going rate is based on your current age.
Given you’re in your early 30’s, your rates don’t increase dramatically year over year, the way they do in your 50’s and 60’s.
When you compare inexpensive life insurance over 60 to coverage in your 30’s you can really see how a little planning goes a long way.
Purchase enough insurance for a long enough term. Circumstances change and you may kick yourself later in life if you don’t take advantage of cheap rates when you can.
Affordable Life Insurance for Over 20!
Life insurance rates seem less important when you’re young. Maybe you’re even reading through this section and wondering why the heck I’m suggesting life insurance for people in their 20’s at all!
To be quite candid, it’s not for everyone. BUT there are circumstances where it’s a very good tool, however.
Your 20’s are usually a time for educating yourself and launching your career. A period when a lot of people take on serious debt.
Maybe you’re lucky and your parents scrimped and saved to gather enough money so your education is paid for…
…or maybe they didn’t have that sort of cash but are cosigning your loan.
In a case such as this, life insurance provides them with some protection in case something unforeseen happens to you and you’re not able to repay the loan.
Everyone's Life Path Is Different
This isn’t the only situation where life insurance for someone in their 20’s is appropriate. There are people who get married young and in that case, the same reasoning applies to those families I talked about above.
Hey, there are also people who plan ahead and know just how incredibly cheap protection is in their 20’s and take advantage of the phenomenal rates in preparation for having their family.
Any way you look at it, life insurance in your 20’s makes sense.
Life insurance is CHEAP when you are young and healthy. A little bit of planning goes a long way to save you some serious cash.
Life Insurance at Birth?
Is it creepy to think about buying life insurance for children?
Frankly, this is a deeply personal subject that deserves an entire post. You can check out my thoughts here.
There are definitely valid reasons to consider insurance for children.
Cost of an Unexpected Funeral & Time to Grieve
Personally, I can’t begin to imagine what it feels like to lose a child.
I’ve been told that parents don’t go back to work right away and in fact, they may take many months off.
Life insurance can really help offset loss of income you might experience from taking an extended leave or help with financial issues that may arise.
Guarantee your child's insurability into the future
Why would you care about this?
Some people have hereditary issues they’re worried about passing on to their kids. Obtaining protection early secures insurability moving forward should your child develop a condition that prevents them from getting insurance as an adult.
For example, I have a friend whose child developed serious depression and anxiety as a teenager. Knowing that would affect their chances of getting life insurance as an adult, they locked in some permanent insurance from a child rider she attached to her policy.
There are two ways to get life insurance for children.
You can buy it as a separate policy or add your kids to your policy through what we call in the business, a Children’s Insurance Rider.
This is the route that most parents take because it’s low cost and provides basic protection for all children including stepchildren and those legally adopted.
The benefit also covers any new children born once they’ve reached 15 days of age. Depending on the carrier, there’s a coverage maximum of approximately $30,000 per child.
The best part? For about $10 -15 extra per month, all your kids are covered.
Considering life insurance for children doesn’t mean you’re expecting the worst to happen to your family. It means you care enough about your loved ones to make sure you’re prepared for anything.
Life Insurance Rates: Policy Architects
Whether you’re 70 or 35 – my guess is there are people you want to protect. Family, debt and final expenses are important considerations for all of us and life insurance is an awesome tool.
Knowing the ins and outs of life insurance rates by age helps you navigate through all the information out there to find the best coverage .
Don’t let important birthday milestones pass you buy without considering your future. All too often I have people call me late in life looking to set up coverage that is now unattainable because of their age or health.
Be proactive and call Policy Architects today. We can help.