How does the age of the insured affect life insurance premiums?

The age of the insured is a significant factor in determining life insurance premiums due to the relationship between age, health risk, and mortality. Younger individuals generally pay lower premiums because they are statistically at a lower risk of dying in the near term compared to older individuals. Life insurance is based on the principle of risk assessment: the younger and healthier the individual, the less likely they are to pass away soon, resulting in lower premiums.

In contrast, older individuals often face higher premiums because, as they age, their probability of health issues or death increases, leading insurers to assess them as higher risk. This reflects the actuarial data that indicates that life expectancy decreases with age.

Therefore, the answer highlighting that younger individuals generally pay lower premiums captures the essence of how age influences life insurance costs accurately, reflecting the basic underwriting principles used in the industry.