Why is life insurance cheaper when you are young?

Life insurance premiums are based largely on mortality risk — the statistical likelihood that you will die during the policy period. Young, healthy people have a very low mortality risk, so insurers charge them much less. As you age, your risk of dying increases along with the likelihood of developing health conditions, both of which drive premiums up. Locking in a policy in your 20s or 30s can save tens of thousands of dollars over the life of the policy.