Why Does Term Life Insurance Get More Expensive as You Age?
Article Written By: Lauren Hoeffel
If you're shopping for life insurance, you've probably heard this advice before: "Buy term life insurance while you're young." But why does age play such a significant role in pricing? What makes term life insurance more expensive as you age—even if you’re healthy?
In this article, we’ll answer that question with facts and statistics so you can make a confident and informed decision about your life insurance needs.
What Is Term Life Insurance?
Term life insurance is a type of life insurance that provides coverage for a set number of years—typically 10, 20, or 30 years. If you pass away during the term, your beneficiaries receive the death benefit. If you outlive the policy, the coverage expires unless you renew or convert it.
Because term life policies don’t build cash value and are limited in duration, they are usually much more affordable than permanent life insurance. But even term life prices rise sharply with age.
Let’s explore why.
1. Age and Mortality Risk Go Hand in Hand
At the heart of life insurance pricing is a fundamental principle: the older you are, the higher the likelihood that the insurer will have to pay a claim during the policy term.
Insurance companies price their policies using a mortality table—a statistical chart showing the probability of death at each age. These actuarial tables are based on data from the Social Security Administration, U.S. Census Bureau, and other health statistics.
For example, according to the Social Security Administration’s 2024 Period Life Table:
• A 30-year-old male has a 0.09% chance of dying within a year.
• A 50-year-old male has a 0.44% chance.
• A 70-year-old male has a 2.6% chance.
That may not sound like a big difference, but those risk gaps multiply over 10, 20, or 30 years. So, the insurance company must charge significantly more to compensate for the increased payout probability.
2. Health Declines with Age—Even for the “Healthy”
Even if you’re relatively healthy in your 50s or 60s, you're still more likely to have health issues than your younger self. Common age-related health conditions such as high blood pressure, cholesterol, diabetes, or heart issues often emerge in midlife.
These health risks don’t just increase your chances of death—they increase the cost of insuring you.
Most term life applications include a medical underwriting process, which may involve a health questionnaire, a physical exam, and sometimes lab tests. The results help determine which risk class you fall into (e.g., Preferred Plus, Preferred, Standard, or Substandard). The older you get, the harder it is to qualify for the lowest-cost categories.
A 2023 report by the National Center for Health Statistics found that by age 55:
• 50% of adults had hypertension
• 36% had high cholesterol
• 15% had diabetes
Even minor issues can push you into a higher-risk class, raising your premiums considerably.
3. Your Policy Term Choices Shrink with Age
As you age, your rate increases and your available term lengths become shorter. Insurers often limit maximum term lengths for older applicants. For example:
• At age 40, you may qualify for a 30-year term.
• At age 60, you may be limited to a 10- or 15-year term.
Why? Because a 30-year term for a 60-year-old would cover them until age 90—an age at which death is statistically much more likely. Offering such a long term would be too risky for insurers without making it extremely expensive.
So, the later you buy, the fewer choices you have.
4. The Cost Grows Exponentially—Not Gradually
Many assume term life insurance costs increase linearly with age—like $10 more yearly. But in reality, the increase is exponential.
Let’s take an example from Policygenius’s 2024 rate data for a $500,000 20-year term policy for a healthy, non-smoking male:
Age Monthly Premium
30 $23/month
40 $35/month
50 $87/month
60 $217/month
Between age 30 and 60, the cost doesn’t just double—it increases by 843%.
This stark price increase is why financial advisors urge people to lock in rates while younger.
5. You Lock in Lower Rates When You're Young
Here’s the good news: term life insurance rates are typically locked in for the entire policy duration.
That means if you buy a 30-year term at age 30, your premium stays the same—every month—for 30 years. The insurance company can’t raise your rate even if you develop health problems or the economy changes.
This lock-in feature is a powerful reason to buy early. You’re essentially freezing your risk profile in time.
For example:
• Buy at 30: Pay $23/month for 30 years = $8,280 total
• Wait until 50: Pay $87/month for 20 years = $20,880 total
Waiting could cost you nearly 3x more in lifetime premiums—for less coverage time.
6. Renewing a Term Policy Later Is Even More Expensive
Some term policies offer a renewable option, allowing you to extend coverage after the term ends—without reapplying. But there’s a catch: you’ll pay the rate for your current age at renewal, which could be dramatically higher.
Let’s say you buy a 20-year term policy at 40 and renew it for one year at 60. The renewal rate could be ten times your original monthly premium.
That’s why term life insurance is best purchased with your long-term timeline in mind—from the start.
Conclusion: The Sooner You Act, the More You Save
Term life insurance gets more expensive as you age because your risk of dying increases, your health may decline, and your policy options narrow. The pricing isn't arbitrary—it's based on decades of actuarial science and health statistics.
So, if you're considering coverage, the best time to act is now—not five or ten years from now. Lock at a low rate while you’re still young and healthy, and protect your family’s financial future without breaking the bank.
