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There is no perfect age to buy life insurance. That being said, the younger you are when you purchase it, the cheaper life insurance is.

Life insurance companies base policy pricing on the probability of paying out a claim. The younger you are, the lower your likelihood of dying, statistically. Meaning two things for the insurance company:

  1. They can likely invest your premium dollars longer and earn money.
  2. They probably won’t have to pay out a death benefit any time soon, if ever.

Because of this, life insurance premiums are considerably lower the younger you are at the time of your application. Premiums will typically rise with age the longer you wait to apply since the company has to adjust for the higher risk of death that increased age brings.

Not Only Your Age, But Your Health Plays a Role in Life Insurance Pricing

However, no matter your age, your health will also play an important role in calculating premiums and getting approved for a policy. If you have a health condition, the life insurance company will consider this when evaluating your application. If your health issue is minor, it may not have any impact on your premium. If it’s a condition that can impact your mortality, then it will likely increase your premium.

It’s yet another reason why buying life insurance at a young age can help you save money. Medical conditions that affect mortality (i.e. heart disease, cancer) haven’t had time to develop. Not that everyone develops serious medical conditions, but time is against humans as we age.

In a recent survey, 39% of insured individuals wish they had purchased their policies at a younger age.

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Lock in a Low Life Insurance Premium

With term life insurance, you can lock in your rate. The premium you pay when you buy your policy will never increase the entire term of the policy.

Term length options range from 10-40 years, depending on your age. If you’re age 45 or younger, all term length options are available to you.

Monthly Quotes for a Healthy Non-Smoking 25-Year-Old Male
Face Amount10-Year Term15-Year Term20-Year Term25-Year Term30-Year Term35-Year Term40-Year Term
$100,000$8.24$8.33$9.36$11.23$12.24$15.08$16.77
$250,000$11.90$11.90$12.30$15.60$17.49$21.68$24.89
$500,000$16.17$16.17$19.08$24.01$28.23$34.71$42.24
$750,000$21.70$21.70$26.07$33.47$39.79$49.52$60.81
$1,000,000$26.77$28.47$30.54$41.45$47.34$61.93$71.03
Monthly Quotes for a Healthy Non-Smoking 25-Year-Old Female
Face Amount10-Year Term15-Year Term20-Year Term25-Year Term30-Year Term35-Year Term40-Year Term
$100,000$6.91$7.47$8.20$9.68$10.85$13.43$15.30
$250,000$8.78$9.09$10.95$13.37$14.66$17.73$20.29
$500,000$11.44$12.79$15.72$19.71$22.90$27.27$33.53
$750,000$14.62$16.64$21.04$27.02$31.80$38.36$47.74
$1,000,000$17.21$19.04$23.47$31.79$38.16$46.37$56.37
Monthly Quotes for a Healthy Non-Smoking 30-Year-Old Male
Face Amount10-Year Term15-Year Term20-Year Term25-Year Term30-Year Term35-Year Term40-Year Term
$100,000$8.39$8.39$9.36$11.23$12.31$16.37$18.97
$250,000$11.90$11.90$12.61$15.85$18.22$22.50$28.84
$500,000$16.17$18.10$19.39$25.25$29.89$37.70$52.95
$750,000$21.70$24.60$26.54$35.33$42.28$54.01$76.88
$1,000,000$28.47$30.81$34.12$43.69$52.52$67.44$101.24
Monthly Quotes for a Healthy Non-Smoking 30-Year-Old Female
Face Amount10-Year Term15-Year Term20-Year Term25-Year Term30-Year Term35-Year Term40-Year Term
$100,000$7.72$7.72$8.27$10.31$11.12$13.66$15.60
$250,000$8.89$9.54$11.14$13.74$15.57$18.91$22.30
$500,000$12.12$13.14$16.37$20.99$25.32$30.98$38.17
$750,000$15.63$17.17$22.01$28.93$35.44$43.92$54.71
$1,000,000$18.55$22.76$24.90$35.19$43.69$53.79$71.68

Buying Now Doesn’t Mean You Can’t Buy Later, Too

While you’re young and healthy and your premiums are at an all-time low, it may be a smart decision to buy a term life insurance policy now.

You may be married. You may have children. These are situations when life insurance is essential.

Or perhaps you’re neither married nor a parent. But if marriage or starting a family is something you hope for in your future, buying life insurance now may save you money. And you can purchase more life insurance in the future (if you’re insurable) even if you purchase life insurance now.

Example:

You’re a healthy 25-year-old. You and your fiancée are saving up to buy a house and get married.

You both decide to buy 20-year term policies. You also decide $250,000 in coverage each is adequate and affordable. Your policy is $12.30 per month, and your fiancée’s is $10.95 per month.

These prices will never increase during the entire 20-year term.

As you’re building your lives together, these life insurance policies can provide financial protection. Should either of you die unexpectedly before age 45, the survivor receives $250,000 to pay for a funeral, bills, cover debts, and help maintain a standard of living.

Any time during the 20-year term, you can choose to purchase more life insurance as your income increases and your standard of living changes. You can choose to keep the original policies or cancel them when you buy the new policies.

Most term life insurance policies include a conversion option. If either of you is diagnosed with a serious medical condition that makes you uninsurable, you can turn your 20-year term policy into a permanent life insurance policy. This conversion option provides guaranteed coverage no matter your health status.

Most term life insurance policies also include an accelerated death benefit rider. If either of you is diagnosed with a terminal illness while your 20-year term policy is inforce, you can use some or all of the $250,000 death benefit now while you’re still living. This money can be used however you wish.

It’s ten years later. You’re married, own a home, and have two preschool-aged children.

You both decide to buy more life insurance coverage that will last until you hit retirement. You each purchase a 30-year $275,000 term life insurance policy. Your policy is $22.69 per month, and your wife’s is $19.60.

You keep your original policies as well. So, for the next ten years, you each will have a total of $525,000 in life insurance coverage. This is a good amount for income replacement protection while raising your children.

After ten years, when you’re both age 45, the $250,000 policies expire, and the $275,000 policies remain until you are 65 years old.

Don’t Wait to Buy Life Insurance

You never know what may happen tomorrow or five years from now. Life insurance protects your loved ones from the financial devastation that can occur if you die unexpectedly.

Unexpected death isn’t the only reason not to wait. A serious disability, medical condition, or legal mishap could make life insurance unaffordable or render you uninsurable.

Each year, the organizations LIMRA and Life Happens conduct in-depth research on American’s attitudes towards buying life insurance. In their 2021 study, 39% of insured individuals wish they had purchased their policies at a younger age.

Whether you need life insurance now or know you will need it soon, today is the perfect day to apply for life insurance.

Here at Quotacy, we don’t ask for your contact information just to see quotes. Play around with our life insurance quoting tool and see in real time how different term lengths, coverage amounts, and ages change the monthly premium.

When you’re ready to apply, it only takes a few minutes to complete the online form. Your Quotacy team will keep you posted as your application moves through the buying process and can answer any questions along the way.

 

Note: Life insurance quotes used in this article accurate as of April 22, 2021. These are only estimates and your life insurance costs may be higher or lower.

 

About the writer

Headshot of Natasha Cornelius, a life insurance writer, for Quotacy, Inc.

Natasha Cornelius

Marketing Content Manager

Natasha is a writer and content editor at Quotacy. She is also co-host of Quotacy’s YouTube series. She can't get enough of life insurance and outside of work is also working toward her Chartered Life Underwriter designation. Connect with her on LinkedIn.