How do higher age applicants generally affect life insurance premiums?

Higher age applicants generally lead to higher life insurance premiums due to the increased risk associated with aging. Insurance companies assess the likelihood of a policyholder's mortality based on various factors, and age is a significant determinant of health and mortality risk. As individuals age, their bodies may be more susceptible to health issues, chronic conditions, and overall decline in health, which statistically increases the chance of claims being made.

Consequently, insurers adjust their pricing models to reflect this heightened risk. The premium is essentially a reflection of the anticipated costs the insurer will incur over the life of the policy, including the probability of a payout. Therefore, older applicants are deemed a higher risk, resulting in them being charged higher premiums to compensate for this increased likelihood of needing to pay out on the policy. This adjustment ensures that the insurer remains financially viable and can meet its obligations to policyholders.