What generally happens to the cost of term life insurance as the insured ages?

As the insured ages, the cost of term life insurance typically increases. This increase is primarily due to the higher risk associated with older age. Insurance companies assess the likelihood of policyholders passing away at various ages, and as individuals get older, the probability of health issues and mortality rises. Consequently, insurers adjust premiums accordingly to offset this increased risk.

In most cases, term life insurance is issued for a set period, often ranging from 10 to 30 years, and might have level premiums at the start of the term. However, if a policyholder opts to renew the term or buys a new policy as they age, they will likely face higher premium rates. This increase reflects the insurer's need to account for the increased risk that comes with advancing age. Understanding this dynamic is essential when considering term life insurance options and recognizing how to plan for future coverage needs and costs.