How does a person's age typically affect their life insurance premiums?

As individuals age, the risk associated with their health and potential lifespan typically increases, making life insurance more expensive for older applicants. This is primarily because insurance companies assess risk based on the likelihood of claims, which usually rise with age due to greater health complications and decreased longevity. Therefore, younger applicants generally benefit from lower premiums, as they are considered to be at a lower risk of death within the policy term compared to older individuals.

The relationship between age and premiums is central to life insurance underwriting practices, as it informs the premium structures and rate considerations for insurers. In contrast, the other options do not accurately reflect how insurance companies evaluate risk. For instance, older applicants do not get lower premiums, and stating that age has no effect or that all ages pay the same premium contradicts the foundational principles of risk assessment in insurance.