Life insurance age limits

What is life insurance?

Life insurance is a type of insurance that provides financial protection to your loved ones if you pass away (or are diagnosed with a terminal illness with a life expectancy of 12 months or less).

For more information on life insurance, please see our ‘What is life insurance?’ article.

Here’s how it works:

After getting a range of life insurance quotes, select an insurance provider and life insurance policy that suits youStart paying monthly life insurance premiums to your insurerIf you pass away during the term of your policy, your dependents make a claim to your insurance company.If your claim is accepted, your loved ones receive a lump sum from your insurance policy

There are several different types of life insurance policies. For help on choosing the right one for you, check out our ‘Types of life insurance’ article from MyTribe Insurance.

Does life insurance have an age limit?

Most insurers operate maximum age and minimum age limits on their life insurance policies.

The minimum age for most policies is 18. However, many insurance providers offer specialist over 50’s policies, which you can’t apply for until you’re 50.

Maximum age is a bit harder to quantify as different insurers operate different terms and conditions. Typically, the upper limit to take out life insurance is around 80. However, you may find others that are younger and older.

Here are five popular level term life insurance policies and their maximum age limits.

“I recently got an insurance policy through myTribe and the service was excellent from start to finish. The adviser that I spoke to was very patient and took time to explain all of the intricacies to me so that I felt confident and informed when making a decision.”
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by Chris Stratton – 12th May 2022
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Why do life insurance companies enforce age limits?

Life insurance companies put age limits on their policies because, for them, insurance is all about risk.

If you’re 40 years old and taking out a 25-year term policy, the likelihood is high that you will live until you’re 65 and the insurance provider will never have to pay out, all the while taking a monthly premium from you. They’ll happily accept you because you’re a low risk.

On the other hand, if you’re in your late 70s or early 80s, you’re much more likely to pass away before the term of your life insurance comes to an end, meaning your insurer will have to pay out. You’re a higher risk and as such, you’re unlikely to be able to get life insurance.

How does age affect the cost of life insurance?

The older you are, the more susceptible you are to health issues such as heart attacks, strokes or dementia. Therefore, you’re more likely to pass away during the term of your policy and the higher risk you are to your insurer.

However, most providers won’t turn you down for insurance just because you’re older. Instead, they’ll reflect that risk in higher premiums.

What else affects the cost of life insurance?

Age is not the only factor that insurance companies use to determine your monthly premiums. Others include:

Type of insurance – Term life insurance is priced lower than whole life insuranceMedical conditions – If you have pre-existing conditions in your medical history, your premiums will be higherSmoking – If you smoke (or smoked in the past), your premiums will likely be higher

Buying life insurance between 18 and 40

Insurance companies will be happy to offer you a policy if you’re under 40. You’re a low risk to the insurer, which will be reflected in lower premiums.

The majority of people in this age bracket don’t take out life insurance at this time, as the likelihood of them passing away is very low. However, you never know what is around the corner.

Taking out life insurance in your 40s

Your 40s is a great time to get insurance as you’re likely to be in good health, so your premiums won’t be too high.

You’re also more likely to get the full benefit of life insurance if you have children and a family that rely on your income.

Buying life insurance when you’re over 50

The average age for someone taking out life insurance is 77 – Source

As people get older, they’re more likely to be swayed by the benefits of life insurance. While you’re still very unlikely to pass away in your 50s, you’re more likely to think about your loved ones and how they would be affected if the worst happens.

Unfortunately, it’s around this age point that insurers begin to charge higher premiums for life cover. As you get older, you’re more likely to suffer from health problems, from niggling pains to serious illnesses such as a heart attack or stroke. It’s not nice to think about, but you’re more likely than before to pass away during the term of a 20-30 year life insurance policy.

You’ll still be able to get life cover, but your premiums will be more expensive than they were when you were younger.

Many insurers offer specialist over 50’s life cover policies. The main benefit of these policies is that there is guaranteed acceptance, so you can get life insurance cover even if you have pre-existing medical conditions. In addition, they’re whole-of-life policies, so the policy is guaranteed to pay out when you pass away. On the other hand, the cover amount tends to be quite low for these policies. In addition, you’ll be paying premiums until you pass away.

Do I need life insurance?

Life insurance isn’t a legal requirement. However, if you want to support your dependents after you’ve gone, it’s a great thing to have, no matter your age.

Think about the special people in your life:

Your childrenYour partnerOther family members who rely on you (e.g. older parents)

If something terrible happened and you passed away, how would they cope? How would they live without your income coming in? Would they be able to pay the mortgage or your household bills?

Life insurance can provide valuable financial protection to the special people in your life at a most difficult time. They could use it to pay off your outstanding mortgage or maintain a good family lifestyle. They could also use it to pay your funeral expenses.

But most of all, life insurance delivers peace of mind. When you purchase life insurance, you can sleep easy knowing you’ve done your best to look after your loved ones, even after you’re no longer around.