What is the relationship between age and life insurance underwriting?

In life insurance underwriting, the age of the applicant is a significant factor in assessing risk. Older applicants generally pose a higher risk because as individuals age, they are more likely to experience health issues and have shorter life expectancies. Insurance companies use statistical data to predict life expectancy and, therefore, premium pricing.

As people age, they commonly face a higher likelihood of chronic conditions, decreased overall health, and increased mortality risk. This elevated risk translates into higher premiums for older applicants, as the insurer has to account for the greater likelihood that these individuals may not be as likely to survive the coverage period as younger applicants. Thus, understanding this relationship helps both insurers and applicants navigate the underwriting process effectively.