- How much I will pay for insurance if I’m older than 40? 65?
- June 26, 2015
Homeowners may also find a financial benefit to the aging process.
Retired individuals, generally people over the age of 65, are more likely to be home and therefore more likely to discourage intruders, Worters said. These individuals are also more likely to spot any electrical problems that could cause a fire or maintenance issues that could evolve into bigger problems because they are home. In addition to this, retired individuals are more likely to take care of their homes.
On the other hand, life and health insurance costs tend to rise as individuals mature. Both age and overall health are major factors for determining the price of life and health insurance.
Len Barend, president of the Barend Agency Inc., in Henderson, Nev., and a member of the senior Medicare advisory group of the National Association of Health Underwriters, says the cost for most health insurance policies are determined based on the overall health, age, gender, weight and pre-existing medical conditions of an individual.
Information is compiled for all the individuals in the group to determine the rates. In larger groups, the rate is averaged over all the participants to create a composite rate so the impact of cost to individuals who have higher health risks is shared among the group.
However in smaller groups, that is not necessarily the case.
Each individual may pay the rate determined for his or her own risk. That rate will likely be higher for older individuals.
“Age is critical. As you get older the risks become more paramount than when you’re younger,” Barend said.
Steve Weisbart, senior vice president and chief economist for the Insurance Information Institute, said life insurance underwriters also look at age when determining rates.
“Both age and overall health are major price factors for life insurance,” Weisbart said.
Most individuals can obtain life insurance though the cost may increase as they mature. About 5 to 7 percent of applicants are rejected, but that rejection generally has little to do with age and almost entirely to do with the current state of health.
As individuals enter a more advanced state of maturity, life insurance becomes harder to obtain.
“Most insurers will not sell life insurance to a person over age 85, no matter how good their health and family history is,” Weisbart said.
Even insurances such as travel and pet insurance take age into account when determining the cost of a policy.
For travel insurance, rates are determined by a number of factors including age, whether or not you are traveling alone, where you are traveling to, how long you are staying and the time of year you are traveling, Worters said.
“Also, older travelers pay more attention to their health before deciding to go on a trip and are less likely to risk injury by going scuba diving, rocking climbing or skiing while traveling,” Worters said.
These factors are used to determine the risk, or overall likelihood, an incident may occur that will force the insurance company to pay a claim. Also, travel insurers have to evaluate the risks associated with someone who might have a serious medical condition. If any emergency health issues occur and the policyholder has to be flown out of the country for treatment, this could be pricey.Pages: 1 2 3
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