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Actually the insurance is too cover the risk for health fitness and life; and as the age become older many factors influence on health and fitness as auto destruction of body cells, decreasing immune system of body , these all factors leads the person on high risk and death. Old age is more liable to face health problems as compare to young and this is why premium increases in proportion with the age, as risk of poor health increases.
insurance companies are doing special insurance cost for old mans over 65 years old because insurance companies seeing that old mans more prone to diseases,risks and death than young mans.But i see this is not fair.
Insurance is all about risk cover; premium increases in proportion with the risk. Age is one of the major risk factors which dominantly affects the risk cover, therefore insurance (mainly life and health) are expensive the older you get.
THERE IS BASED ON RISK ONLY PREMIUM IS CALCULATING. IN OLDER AGE RISK IS HIGH SO EXPENSE OF THE INSURANCE ALSO INCREASE.
If we are talking about Life insurance, I agree with previous answers: older person face high probability to die / to fell ill. From an actuarial perspective this is absolutely fair.
Anyway, in some country (as Italy) this is not allowed: Insurers have to determined fixed recurrent premiums over the life of the policy. This mechanism implies that insurer company have to save part of the premium in the first years of the contract (building technical provision) and than use that amount to cover risk in the last years (using amounts previuso stored as technical liabilities).
Healthcare consumption of individuals increases in line with age: the older the insured person is, the higher the risk that they will develop an illness or condition which will be costly to treat (cardiovascular diseases, cancer, and respiratory problems are the three most common illnesses for which insurance companies receive claims and they become more frequent with age).
In order to balance the risk, the insurance companies calculate their premiums based on age brackets of the clients (for example: 20 -35 years, 35-50 years, 50 years etc.)
Therefore, even if you have not made any claims yourself, your premium can increase simply because you have changed age bracket.
insurance becomes more expensive rather than the previous years because all expenses is going up. But I’m sure if there are more competitors, the price will not be more expensive and the rules have to control that subject
Age factor is very important in Life Insurance Policies. For younger one's the risk is very low. Nearing years and above lot of health hazards grow with the people. Hence all the Insurance companies depends mostly on the premium received from the young age group. For an Insurance company to run as a profit making one this is fair to prefer for high premium for aged persons.
Regardin to the loading rate of insured request based on his history record of insurance type as motor insurance if he has accident or medical insurance if he has illness etc
Age is the main factor that increases the coverage premiums especially when we go to determine the insurance risks in life insurance. and it will participate with others factors such as the number of members, type of work, the culture of behaves of the company that asks for insurance coverage for medical insurance.
What makes that fair or not, is the quality of services that the insurance companies give back to the customers.
