Everyone knows that as you age, your life insurance rates are going to go up. This is true for
every insurance company. But, age is not the only factor that insurance companies consider
when selling a policy. If you have a good health and don’t have any dangerous habits, it is
likely that you will get a good policy at some reasonable rates.
We will get a very good insurance policy for a good rate if we buy the policy when we are
very young. But then, the need for the policy is more felt as you age. Your responsibilities are
more, and your financial obligations have increased greatly.
How Do Insurance Companies Calculate The Age?
It is wrong to assume that companies look at exactly how much we are aged. They don’t give
any extra benefit if you buy the policy before your birthday. They will calculate based on the
attained age. If you have crossed more than six months after the last birthday, the insurance
companies will consider your age on the next birthday.
Life Insurance Rates By Age 30
For most youngsters between 20 and 30, there are many things that are more important than
an insurance policy. They must stabilize in their careers, get married etc. But it is surprising
that almost 50% of that age groups do have insurance.
Once they get married most of them purchase a policy. They feel the need to protect their
family and the coming kids in the face of any eventuality. At this age, the health is also
mostly in good condition and so insurance is bound to be cheaper.
They can easily go for a 20 or 30-year term at this age. The price may not be very different
between the two terms. The price is also not much different between a 20-year old and a 30-
year old. People at this age seem to prefer this term.
An average death benefit that couples with a lot of financial burdens can go for is $500,000.
However, if there is a mortgage it makes sense for both to protect the other in the event of the
death of one of them. It is wise to take a cover that will be equal to the mortgage amount so
that there is enough to pay it even if one of the spouses dies.
For a 20-year old, a policy of $500,000 will cost around $21 per month and for a 30-year old
it will be $22. This is for males who are non-smokers.