Am I charged more if I am a man or a woman? Is it more expensive if I am 50 than if I am 40 years old? We explain why life insurance increases and give you some tips to avoid overpaying.
Life insurance is not expensive, but its price is not the same when you take it out as it is a few years later. Unlike other products, they adapt to the evolution of different variables. If your premium has gone up and you are not sure why, we explain in detail why life insurance goes up.
It goes up a little every year
First of all, you should know that life insurance goes up a little every year. This is because the age of the client is a factor that determines the price. When we are young, there is less risk of something unexpected happening to us and we pass away. For example, it is 16 times more likely to die at 55 than at 20, according to data from the National Statistics Institute (INE). That is why an older person pays more. Every year that they get older, it is more likely that something could happen to them and, therefore, they will pay a little more.
In any case, the annual increase due to age is small. For example, according to data from our comparator, a 40-year-old would pay 76 euros a year for a policy worth 100,000 euros. On the other hand, if they were 41 years old, they would pay 84.
Other factors that increase life insurance premiums
Secondly, if the price has gone up and you don’t think it is due to your age, perhaps it is for one of these other reasons:
The Consumer Price Index (CPI).
I’m sure you’ve thought: “This was cheaper 10 years ago”. That’s due to inflation, i.e., the general rise in prices in a country. With each passing year, life naturally becomes a little bit more expensive. This is measured by the consumer price index or CPI, a reference calculated by the INE, which estimates how much prices have risen. If the CPI is positive, it is usual for all products to adjust and rise in proportion. Ideally, at the same time, salaries and pensions should also be adjusted.
Changes in capital
Life insurance goes up if you change its features. The premium will be higher if you decide to take out a larger capital sum. For example, someone 40 years old would pay 76 euros per year for 100,000 euros, but it would be 91 euros for 120,000.
As in the previous case, life insurance goes up if you add more coverage. All policies cover death from any cause, but offer additional benefits that will increase the premium. This is the case of disability, serious illness or double capital for accidents.
Company price increases
The last reason why the premium may rise is because the company has increased the price of its products. Perhaps it has beefed up the coverages and raised the price to compensate; or perhaps it simply felt it was too cheap.
In any case, the best thing to do is to compare. If your premium has gone up and you are no longer comfortable, take a look at our comparator. In a minute, you’ll know if you can get something better for less.
No gender discrimination
For more than a decade now, it has not mattered whether you are a man or a woman when it comes to taking out life insurance. The European Court of Justice ruled that gender is not a risk factor to be taken into account, so a man will pay the same as a woman. Previously, men could have higher premiums, as they have a shorter life expectancy. Nowadays, life insurance does not go up for that reason.
If you enter our comparator, you will see that the only variables we consider to show you the best offer on the market are your age, the capital and the coverages you want.
Does the price vary a lot depending on the company?
Who you take out the policy with determines the premium. A very clear example: bank policies are up to 79% more expensive than those of insurance companies. Therefore, the main key to saving money is to avoid taking out a policy with a bank and always go to specialists.
To compare insurance companies, it is best to go to our platform. At a quick glance, you have the offer of the main companies in the market. Not only can you see the price, but also the coverage, requirements or age limits of each one. So you can make a more complete decision and not only based on price.
Compare and choose the best price
Remember: life insurance goes up a little every year. However, the increase is quite small if you have not modified its features. If you are not happy with your current policy, take a look at our comparator. It won’t take a moment and you can save a lot of money every year – start saving now!