Posted 14 Nov 2020

How much does my age affect the cost of life insurance?

You might be surprised to know that life insurance premiums can increase considerably as you get older. This doesn’t mean that if you take out a policy that your premiums will go up every year, however in some cases this can happen.

Life insurance is always cheaper if you take a policy at a younger age, which is purely based on risk. As you get older, your risk of being diagnosed with a medical condition or death increases significantly.

Hence a 20 to 30-year-old person will be considered to be a lower risk of claim to a 50 to 60-year-old person.

Why does life insurance increase as you get older?

There are several reasons why you will pay more for life insurance in later life than when you are younger. People who are older adults are at higher risk of suffering events like heart attack, stroke, or cancer.

Some older people have already been diagnosed with a pre-existing medical condition. Common medical conditions that occur in later life include diabetes, multiple sclerosis, high blood pressure, and high cholesterol.

Can I get life insurance with a pre-existing medical condition?

Yes – you should be able to get a new life insurance policy with a pre-existing medical condition. Some of the most common medical conditions include:

There are literally thousands of different medical conditions and variations of conditions so very few people are the same. You should be able to find an insurer who’s right for you and your situation if you speak to an expert.

How much more does life insurance cost as you get older?

Often people are surprised by how much life insurance costs, younger people often think it’s more than it is, and older people generally think it’s less than it is.

If you apply for life cover in your 20’s then you’ll probably be amazed by how cheap cover is. However, if you apply for cover in your 50’s then you might consider it to be quite expensive.

Here are a few examples to show how much cover costs based on £100,000 over 20 years for a non-smoker:

  • 25 years of age: £4.63 per month
  • 55 years of age: £28.38 per month

Here are some examples of £100,000 over 20 years for a smoker:

  • 25 years of age: £5.80 per month
  • 55 years of age: £71.47 per month

*These examples are based on an average of the TOP 3 insurance providers in the UK on 13.11.2020

If you have a pre-existing medical condition or a high-risk job then these premiums might be slightly different. Ultimately you can see from the examples above that the cost of cover dramatically increases over a period of time.

For more information about life insurance, feel free to give iam|INSURED a call on 0800 009 6559.

Daniel Sharpe-Szunko