Sample Optional Life Insurance Rates
Premium Prices for Optional Group Life Compared by Age and Sex
Nov 6, 2009
Optional life insurance is often sold under a group life insurance policy either for an employer, association or union.
Typically, optional life premium rates are higher than those for basic life insurance. This is because participation is usually lower since group members usually pay for their own amounts of optional coverage. The group policyholder normally pays the bill for all basic life insurance.
Group members can decide whether or not they will buy optional coverage; this is why optional life is sometimes called voluntary life insurance. To prevent a higher ratio of insured lives who are in poor health, life insurance companies require medical evidence for all amounts of optional life coverage. Each applicant fills out a health questionnaire, and may require further medical testing depending on the answers to that questionnaire.
Premium rates for optional life automatically renew each year based on the insured member’s attained age. The table of age-based rates applies to all members under a group policy. Unlike basic group life insurance which can continue past age 70, all optional life coverage ends when a member reaches their 65th birthday.
Below are Standard Life’s sample rates for female and male non-smokers and smokers at different attained ages.
Female Non-Smoker Optional Life Rates
The following annual premiums are for women non-smokers. The yearly cost of $100,000 worth of optional life coverage for a 64-year-old woman who does not smoke is 848% greater than the annual premium at age 18.
Age 18 … $215 per $100,000 of optional life insurance
Age 20 … $220
Age 25 … $225
Age 30 … $249
Age 35 … $292
Age 40 … $361
Age 45 … $442
Age 50 … $522
Age 55 … $635
Age 60 … $1,316
Age 64 … $2,038.
Male Non-Smoker Optional Life Rates
A non-smoking man pays annual premium rates at age 64 that are 1,005% more expensive than what male non-smokers from ages 18 to 30 are charged.
Ages 18 to 30 … $279 per $100,000 of optional life insurance
Age 35 … $335
Age 40 … $424
Age 45 … $545
Age 50 … $697
Age 55 … $930
Age 60 … $1,977
Age 64 … $3,084.
Female Smoker Optional Life Premiums
The yearly cost of $100,000 worth of optional life coverage for a woman smoker age 64 is 728% more than the annual premium at age 18. Perhaps more surprising is the fact that annual premiums are the same for a 64-year-old female whether or not she smokes.
Age 18 … $246 per $100,000 of optional life insurance
Age 20 … $259
Age 25 … $284
Age 30 … $334
Age 35 … $412
Age 40 … $526
Age 45 … $648
Age 50 … $747
Age 55 … $863
Age 60 … $1,437
Age 64 … $2,038.
Male Smoker Optional Life Premiums
A male smoker pays annual premium rates at age 64 that are 679% more expensive than what male non-smokers ages 18 to 25 are charged. Like their female counterparts, 64-year-old men pay the same premium whether or not they smoke.
Ages 18 to 25 … $396 per $100,000 of optional life insurance
Age 30 … $456
Age 35 … $584
Age 40 … $769
Age 45 … $1,003
Age 50 … $1,266
Age 55 … $1,608
Age 60 … $2,344
Age 64 … $3,084.
Life insurance actuaries and underwriters may not develop separate optional life rates for smokers simply because coverage ends at age 65. Discounted optional life premiums for non-smokers may not attract enough sales to justify distinct rates based on smoker status for one year of life coverage.
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