What is age reduction life insurance

Answer: If you are an active employee, age 65-69, your basic life insurance benefit is subject to age reduction. This means that we will multiply your current salary x 2 and reduce it to 65% For example, if you are an active employee age 65-69 making $50,000, we would multiply $50,000 by 2, yielding $100,000.

What does reduction mean in life insurance?

Decreasing term insurance features a death benefit that gets smaller each year, according to a predetermined schedule that also sees premiums decrease over time. Decreasing term insurance is often purchased to provide personal asset protection.

What is the best age for term life insurance?

As we age, we're at increased risk of developing underlying health conditions, which can result in higher mortality rates and higher life insurance rates. You'll typically pay less for term life insurance at age 20 than if you wait until age 40. Waiting until age 60 usually means an even bigger increase in price.

Why does age matter in life insurance?

Why Does Age Matter? Age is a primary determinant in life insurance rates, since the greater your age the greater your risk of death. In other words, for the same term life policy, a 48-year old will almost always pay more than a 32-year old, even if they are in equally excellent health.

Which is better whole life or term life?

If you only need life insurance for a relatively short period of time (such as only when you have minor children to raise), term may be better as the premiums are more affordable. If you need permanent coverage that lasts your entire life, whole life is likely preferred.