How does age typically affect life insurance premiums?

Younger individuals generally pay lower premiums for life insurance because they are perceived as a lower risk to insurers. The risk of mortality increases with age, which means that insurance companies often charge higher premiums for older individuals based on the likelihood of claims being made within their lifetime. In the context of life insurance, younger individuals typically enjoy lower rates due to their longer life expectancy and better overall health compared to older populations. This is a fundamental principle of life insurance underwriting, where the age of the insured plays a crucial role in determining the cost of coverage.

The other options do not align with how life insurance companies assess risk. For instance, suggesting that older individuals pay lower premiums due to experience misrepresents the underwriting process; instead, older age is associated with higher premiums due to increased mortality risk.