The insurance industry is based on statistics, the likelihood of an event occurring, or not occurring. In determining auto insurance rates, for example, an insurance company will mathematically decide the chances of a car accident occurring to a particular person who drives under certain conditions using a particular type of vehicle. It must then determine the average potential costs of such an incident and estimate a customer cost, or “premium” for auto insurance. There’s obviously much more involved, but you get the basic idea.
While still complex, determining life insurance rates is somewhat simpler. Insurance companies know that the younger and healthier you are, the longer you are likely to live. They still have to consider factors like lifestyle choices, gender, employment and hobbies, but overall, it is why one should secure life insurance when young and in good health.
Today’s life expectancy for the average human is 72.2 years old. Women tend to live slightly longer, and men slightly less. While there are many theories, and many jokes regarding the reasons, facts are facts. Most understand we are living longer than ever. The changes however, have been fairly dramatic, even from just generations ago. When you look closer at specific periods of time and places throughout history, life expectancy has been shockingly brief at times.
While world-wide life expectancy at birth today exceeds 70 years, in 1950 that number was just 48. Those born across the globe in 1900 only had a life expectancy of 31. While this number is a worldwide figure, including those in undeveloped nations, it is still amazingly brief.
There have been times and places where it has even been shorter. In Pre-Columbia Southern United States, men only had a life expectance of 25-30 years. Those in Classical Rome were only expected to live from 20 to 30 years of age, although once making to 20, odds of living to 30 increased. In the Bronze and Iron Ages, life expectancy is estimated to have been just 26. It is difficult to imagine living during a time when life was literally, so short. Maybe we should all live life like it was the Bronze Age.
Is life insurance a fundamental part of your financial plan? It may be less expensive than you think. Contact one of our independent life insurance agents and after just a few questions, they can research multiple companies to get you a quote to suit your budget and needs. The decision if and how you want to proceed is always yours. Our agents are simply here to help. We look forward to assisting you.