At what age do premiums increase more significantly for whole life insurance?

Hey guys! I understand that premiums are cheaper when you're younger. But wanted to check how much of a difference it will make if one were to get a WLI starting at age 22 versus 26.

It'll obviously be cheaper at 22 but i'm trying to understand if overall the amount we put in will be similar (start earlier, pay less per month vs start later, pay more per month). If we add up all the premiums paid over the years is there much of a difference?

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PolicyPal

17 Jun 2020

Official Account at PolicyPal

Premium is usually determined by various factors with your age at the point of purchase being one of them. Most insurance premium will increase by 8- 10% for each year. This is because as you aged, you are approaching your life expectancy, which make you riskier to insure. There is no cut off for age that will result in a significant increase.

With that being said, health is also another factor that is considered when determining your premium. There is a direct relationship between age and the likelihood of you having health problems. Thus, it might be harder for older applicants to qualify for life insurance due to health issues.

Feel free to contact us to find out more.

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Hariz Arthur Maloy

28 May 2020

Independent Financial Advisor at Promiseland Independent

Hi Jennifer, on average, premiums increase by 6-7% yearly for every year you grow older.

If it's 1000/yr today, it'll probably be 1060/yr next year. And it'll be 1340/yr after 5 years.

So definitely, the total premiums payable would increase as well.

Other than premiums, do note that health plays a big part. You may develop health issues that affect your ability to purchase insurance or may get a premium loading if there's a change in health status.

So buying early not only allows you to pay lesser, but makes sure you can be insured.

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