While you have to be 18 years or older to take out a life insurance policy, you can take out this type of insurance for or on behalf of a child or minor. It is recommended to take out a life insurance policy no younger than 25 years but no later than 50 years. The sooner you take out life insurance, the greater the benefit will be.
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However, if you are over the age of 65 years, it may be more difficult to get life insurance as most providers have this age as a cut-off to provide benefit. This is largely due to the fact that the insurer runs a greater risk of having to pay out a full benefit in case of death before they are able to cover the cost of the payout from monthly payments or premiums.
Age Restriction For Different Policies:
This restriction applies to both term and whole or universal life insurance although some policies may have an older age restriction and may therefore be valid for those over the age of 65 years. Shorter term life insurance policies are normally for a period of 10 years while longer terms are usually between 10 and 30 years. Term life insurance is a popular option as it is less costly than whole life insurance.
This is because a payout will only be received by the beneficiaries listed on the policy in the event of the death of the insured within the stated term of the policy. In other words, if death occurs even one day after a 10-year policy has expired, then no benefit will be paid out. The disadvantage of term policies is that if you live after the expiry date of the policy, then you lose all the money that you have paid to the insurance provider.
Renewable term life insurance is a good option for the older generations. This allows the policyholder to renew the policy after the expiry date without having to go through the qualification process again. This means that you may be able to renew the policy even if you are over the age of 65 although this will also be for a limited period of time.
Whole life insurance, on the other hand, provides a death benefit for the entirety of your life until the day you die. There is no expiry date when the policy will pay out but this is a more expensive option as the risk is only contingent on when the policy will pay out rather then if it will.
There are other restrictions that may apply to qualifying for life insurance. Diagnoses of a terminal disease, high blood pressure, cardiovascular disease, serious illness and many other pre-existing health conditions may exclude you from qualifying for life insurance. Other risk factors such as a dangerous jobs or activities, bad lifestyle choices (smoking, substance abuse, obesity) may also be excluded.
It is important to note that the age and other restrictions can only apply to new policies and that these restrictions cannot be applied to existing life policies.