Co-Founder, Coastal Financial Partners Group, California
Yes, life insurance premiums are a lot lower at younger ages when the risk of death is lower. The longer one waits to buy life insurance, the more the premium will be. In a level premium, permanent policy, you are locking in a lower rates for life by buying early.
Life insurance is cheaper to buy when you are younger if your health is good or you have no other risk. Some things that can afflict a younger person do not show up so much in older persons: DUI's, suspended drivers licenses, suicide attempts, some mental disorders, and type 1 diabetes, to name a few. While under the age of adulthood, some of these conditions can make it impossible for a child or teen to get life insurance, although there are usually policies to be had for each of these after age 19. And sometimes more years of control or stability can actually bring the rate down.
However, in the absence of those situations, it is usually cheaper to buy life insurance when you are younger.
That is an excellent question! Absolutely it is cheaper to buy young! I purchased policies for my kids when they were in preschool. Their monthly payments will never be more than the approximately $7 a month that they were when I purchased them. An added bonus in buying for your minor child? Many companies offer the opportunity to add additional amounts of insurance without having any health questions. This can be a huge blessing, especially if your child has developed some illness that would otherwise deny them, or make the coverage prohibitively expensive. The other benefit of buying young is for the growth of the cash value. A policy purchased and left to grow for a couple of decades can have a sizable cash value, when you hit retirement age, and may need access to some extra money. By all means, buy young! Thanks for asking!
Usually,yes the lower the age the lower the premium if the applicant's health is good and no other risks.Also in Level premium, Permanent life policies the monthly premium is set at a lower rate for life buy purchasing coverage at a lower age.Another advantage of purchasing at a younger age,is it increases the potential for larger cash value in a policy.
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However, in the absence of those situations, it is usually cheaper to buy life insurance when you are younger.