Insurance Basics7 min read5 April 2026
How Age Affects Life Insurance Premiums — and What to Do About It
Every year you wait to get life cover, the cost goes up. Here's the maths — and when to lock in.
Life insurance premiums are calculated primarily on two factors: your age at entry and your health. Every year you delay, the cost of the same cover goes up — sometimes dramatically.
How much does age affect premiums?
| Age at entry | Indicative monthly premium (500K stepped cover) | Relative cost |
|---|---|---|
| 25 | $25–$40 | Base |
| 30 | $30–$50 | +20–30% |
| 35 | $45–$75 | +80–90% |
| 40 | $75–$130 | +200%+ |
| 45 | $130–$220 | +400%+ |
Stepped vs level premiums
Stepped premiums increase each year as you age — starting cheap but becoming expensive. Level premiums are fixed at entry and become comparatively cheaper over time. If you're taking out long-term cover, level premiums often win over a 20+ year period.
Action
If you're between 28–35 and have dependants or a mortgage, this is the best window to lock in affordable cover. Don't wait.
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