How does age generally influence health insurance premiums?

The relationship between age and health insurance premiums is influenced by the fact that older adults tend to have higher healthcare needs compared to younger individuals. As people age, they are more likely to develop chronic conditions and require more medical care, which translates into higher costs for insurers.

Consequently, insurance companies assess the risk associated with insuring older adults as greater, leading to higher premiums. This principle is a fundamental aspect of how risk is calculated in the insurance industry. Therefore, it is common for older individuals to pay higher premiums than their younger counterparts, reflecting the increased likelihood of needing medical services.