How does the age of the insured affect premiums in Variable Life Insurance?

In Variable Life Insurance, the age of the insured plays a significant role in determining premiums. As individuals age, the risk of mortality increases, which is why older insureds typically face higher premiums. Insurers assess the likelihood of claims based on mortality rates, and as a person gets older, the probability of death increases, leading to higher costs of insurance coverage.

This increased risk translates to higher premium payments for older insureds, as the insurance company needs to account for the greater likelihood of having to pay a death benefit. Therefore, older individuals will generally see their premiums rise compared to younger insureds. In contrast, younger insureds are associated with lower mortality risks and thus benefit from lower premiums.

This understanding is crucial in the context of Variable Life Insurance, where the cost of insurance is influenced by the age of the insured at policy issue and throughout the life of the policy.