In the earlier years there was a rule in the life insurance sector that was to catch young customers. There were many advantages of catching them young both to the insurance company and the customer getting insured. This is why the policies did not cost too much and the premium amounts were really low. There is a simple logic behind these calculations and that it the following :-

“A younger person has more chance of living” and hence he or she can pay the company for a longer time than a person who is old or is ill. This is why insurance companies charge high rates from older people and those who want critical illness cover. Some companies do not provide life insurance to senior citizens simply because of the risk factor that is involved. Thus once the person retires the life insurance ends. To solve this problem there is an over-50 life insurance known as the whole insurance, here the policy remains intact till the person is alive. The policy is said to be in force for the whole life, which used to happen only when the person pays the premium. Thus whole life insurance is a boon for older people who do not have life insurance.

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