The insurance carrier

The insurance carrier has a different price it charges to insure you for every year you live.  So say you’re 40 years old in good health and you apply for guaranteed term life insurance for $500,000.  The true cost to insure you for that one year of life might be $12 per month.  But next year you turn 41.  You’re one year closer to dying, so it costs a bit more premium to insure you.  At age 41, it might cost $13 per month.  From age 40 to 49, your monthly premiums might increase on a schedule as illustrated.