When determining the cost of life insurance, age is a key factor. In general, the younger someone is when they purchase a policy, the cheaper regular premiums are likely to be because the risk to the insurer is lower, as younger people are statistically less likely to die during the term of the policy.
It makes sense that as you age, the cost of new life insurance cover generally increases because the likelihood of death increases, especially true for people who have developed health issues or who engage in risky behaviours including smoking or extreme sports.
For example, a 65-year-old smoker with a history of health problems is likely to pay significantly more than a 25-year-old non-smoker in good health for the same level and duration of cover. Insurers will also consider your age when determining the length of the policy term, with longer terms generally being available to younger people. Although maximum age limits vary, many insurance companies offer a maximum term of around 40 years.
Other factors
Age is just one factor affecting the cost; the insurance company will also consider your occupation, family medical history, overall health, lifestyle and the length of policy.
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.