If you’re reading this then you will be wondering, do life insurance premiums get more expensive? The short answer is yes – but not in the way you might think. Once you take out a life insurance policy, your monthly premium is locked in for the whole term.
However, if you wait to buy life insurance, the cost of a new policy will almost certainly be higher, because premiums are calculated based on your age and health. In this blog, we’ll explain how life insurance pricing works, why it pays to act sooner rather than later, and how you can lock in the best deal.
How life insurance premiums are calculated
Life insurance premiums are based on risk. Insurers look at factors such as:
- Age – the older you are, the higher the risk of health issues or death.
- Health – medical history, weight, blood pressure, and lifestyle all play a role.
- Lifestyle choices – smoking, alcohol intake, and even dangerous hobbies can increase your premium.
- Policy type and amount of cover – a longer policy term or higher payout will cost more.
The key factor here is age. Every year you wait, you are older when applying, which means the insurer sees you as a higher risk, and your premiums go up.
Do premiums go up during the policy?
When you choose level term life insurance, your premium is fixed for the entire length of the policy. This means if you start a policy today at £20 per month, you’ll keep paying £20 per month for the full term, whether that’s 10, 20, or 30 years.
This is why acting early matters. The younger and healthier you are when you take out the policy, the lower the premium you lock in. Even if your health changes later, your cost stays the same because you secured the policy earlier.
Why waiting costs more
The older you are the more risk you are to insurance providers. This doesn’t mean you’re not able to be insured. But it does mean that your premiums will cost more as they represent an increased risk.
Do premiums ever increase?
There are some types of life insurance where premiums may rise:
- Index-linked life insurance – premiums rise in line with inflation (for example RPI or CPI). This ensures the payout keeps its real value over time but means your premiums will also increase.
However, you can choose guaranteed premiums, which stay the same throughout the policy.
Pros and cons of acting early
Pros
- Lock in the cheapest possible premium.
- Protect your family immediately.
- Premiums won’t rise even if your health changes.
- Peace of mind for the long term.
Cons
- You pay premiums for longer overall if you take out a policy young.
Despite the small downside, the long-term savings and security far outweigh the cost of waiting.
Final thoughts
So, do life insurance premiums get more expensive? Yes – the longer you wait to apply, the more you will pay. But once you take out a policy, your premiums usually stay fixed for the entire term. That’s why it’s best to act early while you’re young and healthy.
As a life insurance broker, IGotCover can help you find the right policy at the best possible price. Don’t wait until tomorrow – get in touch today and lock in your price.
