How Does Age Affect Life Insurance?

Video Transcript

"Hello, my name is Vic Schumacher, the question is how does age affect life insurance. The answer to that is very simple. The younger the least expensive it's going to be. Age has a big factor because all insurance companies operate off their premiums, determine their premiums off an actuary table. How long will the person live. Let's just say the average age is seventy-eight years old in the United States and a person wants the policy at age twenty-five, the premium is going to be low. If a person is the age of seventy years old and the expected life is seventy-eight, the insurance company knows that that person is not going to live very long and therefore the premium is going to be very, very high. So the sooner that you get a life insurance policy, no matter what the premium is, no matter what the death benefit is, you'll pay less money now. If you're young, get a long term policy, twenty, twenty-five, thirty-five years, and that's possible today. At a low premium the rates are guaranteed for that entire period of time. If you're older, those premiums are going to rise. You don't want to be caught in that episode. My name is Vic Schumacher, the company is HPE Financial Services, helping people everyday."