Term Life Insurance FAQ
COVERAGE NEEDS
Q. Will term life insurance premium rates increase as I age?
A. Once you have term life insurance coverage, your insurance
premium rates will not increase for the duration of the term.
The premium — and benefit amount — remains the
same. Only at the end of the term period you have chosen -
10, 20, 30 years - will your life insurance rate increase.
If you are not already covered, life insurance rates increase
as you age. The reason is simple — as you grow older,
the likelihood for mortality increases, e.g., a 23-year-old
is considered less likely to die than a 65-year-old. That’s
why older individuals pay more for life insurance.
Because term life insurance premium rates are locked in for
the entire time that the policy is in effect, young people
can often get a significant amount of coverage for 20 or 30
years at an affordable rate. The low rate stays the same for
the duration of the term, even if their health declines.
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