Do they charge me more if I am a man or if I am a woman? Is it more expensive if I am 50 than 40 years old? We explain why life insurance goes up, and we give you some tips to avoid overpaying.
Life insurance is not expensive, but its price is not the same when you hire it as it is a few years later. Unlike other products, they adapt to the evolution of different variables. If your premium has been raised and you are not very clear about the reason, we will explain in detail why the life insurance goes up.
Go up a little every year.
First of all, you should know that life insurance goes up a little every year. This is so because the age of the client is a factor that determines the price. When we are young, there is less risk that something unexpected will happen to us and we will die. For example, it is 16 times more likely to die at the age of 55 than at the age of 20, according to data from the National Institute of Statistics (INE). Therefore, an older person pays more. Every year that you get older, it is more likely that something could happen to you and, therefore, you will pay a little more.
In any case, the annual increase due to age is small. For example, according to the data from our comparator, a 40-year-old person would pay 76 euros a year for a 100,000-euro policy. Instead, if he were 41 years old, he would pay 84.
Other factors why life insurance goes up
Secondly, if the price has been raised and you do not agree that it is due to your age, it may be for one of these other reasons:
The consumer price index (CPI)
Surely you have ever thought: “This was cheaper ten years ago.” This is due to inflation, that is, to the general rise in prices in a country. Every year that passes, life naturally becomes a little more expensive. This is measured with the consumer price index or CPI, a reference calculated by the INE and 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, salaries and pensions should also be adjusted at the same time.
changes in capital
Life insurance goes up if you change its characteristics. The premium will be higher if you decide to hire a larger capital. 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.
More coverage
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 due to an accident.
Company price hike
The last reason you can raise the premium is that the company has made its products more expensive. Perhaps it has tightened coverage and raised the price to compensate, Or maybe you just thought it was too cheap.
In any case, it is best 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 money.
No gender discrimination
For more than a decade, it does not matter if you are a man or a woman when taking out life insurance. The Court of Justice of the European Union ruled that sex is not a risk factor that should be taken into account, so a man will pay the same as a woman. Before, men could have higher premiums since they had a shorter life expectancy. Currently, 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 coverage you want.
Does the price vary a lot depending on the company?
Who you contract the policy with determines a lot of the premium. A very clear example: bank policies are up to 79% more expensive credit policies than those of insurance companies. Therefore, the main key to saving is to avoid contracting it with a bank and always go-to specialists.
To compare between insurers, it is best to go to our platform. At a quick glance, you have the offer of the main companies in the market. You can see not only the price but also the coverage, requirements, or age limits of each one. This way you can make a 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 raise is quite small if you have not modified its characteristics. If you are not happy with your current policy, take a look at our comparator. It will take a moment, and you can save yourself a lot of money every year. Start saving now!
