Why Do Life Insurance Rates Vary? 
Life insurance rates vary for several reasons . One reason is the age and risk of the person being insured . An older person with poor health will most likely die sooner than a younger , healthier person . Life insurance companies need to bring in enough premiums to pay claims , so they try to be fair by charging more to persons with higher risk than to those with lower risk . That way the strength of the company and the security of each policy is ensured . Another reason that life insurance rates vary is because life insurance policies vary . E.g. a 10 year term policy will jump way up in price in 10 years . A permanent policy may keep the same premium for life . Finally , some policy rates vary because life insurance companies specialize in different types of policies and risks . Some are more competitive with some types of policies than others . 