Jane Dotson
Life insurance is a product that many people consider purchasing at some point in their lives. The average age at which people get life insurance varies, but it is generally agreed that the younger and healthier you are, the more money you will save on your premiums. This is because as we age, we are at an increased risk of developing health conditions, which can result in higher mortality rates and higher life insurance rates. According to the 2024 Insurance Barometer Study, the percentage of life insurance ownership tends to increase with age. For example, 50% of millennials (ages 28-43) own life insurance, while Gen X (ages 44-59) and Baby Boomers (ages 60-78) claim the highest percentage of ownership at 55% and 57%, respectively.
| Characteristics | Values |
|---|---|
| Average age people get life insurance | Younger people tend to pay lower life insurance rates than older people. The premium amount increases on average 8-10% for every year of age. |
| Percentage of life insurance ownership by age | Gen Z (12-27): 36% |
| Millennials (28-43): 50% | |
| Gen X (44-59): 55% | |
| Baby Boomers (60-78): 57% |
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What You'll Learn
- The younger and healthier you are, the more money you'll save on life insurance
- Life insurance rates increase with age
- The maximum age for approval ranges from 70-85 years old
- Gen Z (ages 12-27) claim a 36 per cent ownership of life insurance
- Whole life policies can be issued to people as old as 80 or 85
The younger and healthier you are, the more money you'll save on life insurance
Life insurance is cheaper the younger and healthier you are. This is because as we age, we're at an increased risk of developing health conditions, which can result in higher mortality rates and higher life insurance rates. For example, a 30-year-old will likely receive a lower premium quote than a 40-year-old.
The premium amount increases on average by 8-10% for every year of age. Age can also influence whether a person qualifies for life insurance coverage at all. Depending on the type of policy, the maximum age for approval ranges from 65-85 years old. However, there are also some policies, such as guaranteed issue whole life insurance, that have a minimum age requirement — typically 50 years old.
Gen Z (ages 12-27) claim a 36% ownership of life insurance, while 50% of Millennials (ages 28-43) own life insurance. Gen X (ages 44-59) and Baby Boomers (ages 60-78) claim the highest percentage of ownership at 55% and 57% respectively.
If you will need life insurance coverage in the future (e.g. you plan to have a family or send a child to college several years down the road), it may make sense to get it while you are younger to reduce your annual premiums. Life insurance premiums will increase on a policy if you buy it when you are older. At a certain point, many insurers will decline coverage altogether.
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Life insurance rates increase with age
According to Bankrate, Gen Z (ages 12-27) claim a 36 per cent ownership of life insurance, while 50 per cent of millennials (ages 28-43) own life insurance. Gen X (ages 44-59) and Baby Boomers (ages 60-78) claim the highest percentage of ownership at 55 per cent and 57 per cent, respectively.
The premium amount increases on average by 8-10 per cent for every year of age. Age can also influence whether a person qualifies for life insurance coverage at all. Depending on the type of policy, the maximum age for approval ranges from 70-85 years old. However, there are some policies, such as guaranteed issue whole life insurance, that have a minimum age requirement, typically 50 years old.
Term policies and some forms of permanent life insurance have fixed rates that are set when you purchase the policy. If you take out the policy when you're younger, you'll usually enjoy cheaper rates that are fixed for the length of the policy.
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The maximum age for approval ranges from 70-85 years old
The maximum age for approval for life insurance ranges from 70 to 85 years old, depending on the type of policy. Whole life policies can be issued to people as old as 80 or 85, but term policies may have restrictions for those as young as 65 or 70. Generally, the younger and healthier you are when buying life insurance, the more money you'll save. Young people tend to pay the lowest life insurance rates, whereas older people tend to pay the highest. This is because advanced age typically corresponds to health complications or a shorter lifespan.
According to the 2024 Insurance Barometer Study, the percentage of life insurance ownership tends to increase with age. Gen Z (ages 12-27) claim a 36 per cent ownership of life insurance, while 50 per cent of Millennials (ages 28-43) own life insurance. Gen X (ages 44-59) and Baby Boomers (ages 60-78) claim the highest percentage of ownership at 55 per cent and 57 per cent, respectively.
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Gen Z (ages 12-27) claim a 36 per cent ownership of life insurance
Age is one of the most significant determining factors in the cost of life insurance. The younger and healthier you are when you buy life insurance, the more money you'll save. This is because as we age, we're at an increased risk of developing health conditions, which can result in higher mortality rates and higher life insurance rates. Premiums increase on average by 8-10% for every year of age.
It's worth considering that some policies have a minimum age requirement, typically 50 years old. Additionally, at a certain point, many insurers will decline coverage altogether due to age. Whole life policies can be issued to people as old as 80 or 85, while term policies may have restrictions, such as a maximum age of 65 or 70.
Gen Z's relatively low ownership of life insurance could be due to a variety of factors, including their age, financial situation, and life stage. As they get older, their awareness of the importance of life insurance and their financial stability may increase, leading to a higher percentage of ownership within this generation.
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Whole life policies can be issued to people as old as 80 or 85
While younger people tend to pay lower life insurance rates, whole life policies can be issued to people as old as 80 or 85. The premium amount increases on average by 8-10% for every year of age, so it is more expensive to take out life insurance at 40 than at 25.
The maximum age for approval depends on the type of policy, with a range of 70 to 85 years old. Some policies, such as guaranteed issue whole life insurance, have a minimum age requirement, which is typically 50 years old.
It is more common for younger people to take out life insurance, with 36% of Gen Z (ages 12-27) owning life insurance, compared to 50% of Millennials (ages 28-43) and 55% of Gen X (ages 44-59). Baby Boomers (ages 60-78) have the highest percentage of ownership at 57%.
While it is more expensive to take out life insurance at an older age, it is still possible to do so. Whole life policies can be issued to people as old as 80 or 85, and some insurers may offer coverage to people older than this. However, it is important to note that the premium amount will increase with age, so it is generally more cost-effective to take out life insurance at a younger age.
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Frequently asked questions
The average age to get life insurance is usually 30. This is often because people are starting or already have a family and want to ensure their children's financial security.
People tend to get life insurance at this age to ensure peace of mind for themselves and their dependents. Life insurance provides financial security for spouses, children, or elderly parents in the event of the policyholder's death.
Yes, life insurance rates typically increase with age. Younger people tend to pay lower premiums because they are considered lower-risk. As people age, they are at a higher risk of developing health conditions, which can result in higher mortality rates and, consequently, higher life insurance rates.
