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What Age Should You Get Life Insurance?

Let’s talk a bit about age. When people put off getting a life insurance policy, it is usually because they have the very wrong notion that getting life insurance is synonymous with inviting death. As much as we do not want to think about our deaths, it is something that will eventually happen, it is inevitable. And when it does, we do not want our loved ones struggling with the financial impacts of our deaths.

This is why life insurance is important and why you should consider getting a policy if you haven’t. It pays out a lump sum or, in some cases, a monthly stipend to the people left behind after the unfortunate incident of your death. This money will go a long way in helping your loved ones deal with the effects of your death.

But the question now becomes, “at what age should I get a life insurance policy?”. Is there an age that is too young? When will it be too late for me to get a life insurance policy? Does my age affect the premium I pay? These are the questions we hope to provide the answers to in this guide. 

Is There A Minimum Age For Life Insurance?

The simple answer to this question is No. But it is not that easy of a question. There are reasons why you should get life insurance as early as you can, but then there might be that constant nagging feeling at the back of your head that it might be too early for you to be contemplating getting life insurance.

A life insurance policy might become useful when you realise that other people in your life will have to bear extra financial responsibility if anything were to happen to you. This means that it might be a good idea to get a life insurance policy when you get married or when you plan on having children. Apart from these scenarios, it might become for you to get a life insurance plan when you

  • You plan on taking out a mortgage on your home.
  • When you have family members who depend on you for financial support.
  • When you have personal debts to pay.
  • On the occasion that you start a business or want to expand an already existing one.
  • When you are organising your estate.

The idea is that as you are planning to take that major step in your life, a step that might indicate an increase in financial responsibility, then it might be a good idea to get a life insurance policy. However, no matter how early you want to get your life insurance policy, you still have to be patient till you are 18 years old.

Is There An Age Limit For Life Insurance?

Again, the simple answer to this question would be No. But this might not be the case for all insurance providers and all the insurance options out there. Most of the time, you should be able to get a policy no matter what age you are, until you are 80 years of course.

There are other options too. There is the senior cover which provides life insurance for people over 50 and the coverage they provide will last till the death of the holder. We must mention here that the premium you pay is subject to your age (we will talk about this in the next section). You might also receive lower payouts depending on how old you were before you got the policy. Therefore, as much as you might find an insurance option for yourself, no matter how old you are, it is always advised that you start early enough so that you can get the best out of your insurance policy.

Do Life Insurance Premiums Increase As You Get Older?

Yes, your age plays an important role in deciding what your insurance premium would be. You will be paying less premium for your life insurance if you get it at a younger age than if you get it when you are much older.

Depending on your provider, your life insurance premium will increase by a certain percentage for each year you add. This is because your risk level increases with your age. The cliche saying that every birthday you celebrate is a step closer to the grave is, unfortunately, very true in this scenario. This is why insurance providers charge a higher premium for older policyholders.

However, it is not too late to get an insurance policy. The advantages that come with getting one still trump the higher premium you might have to pay because you did not get it earlier on in your life.

What Is The Best Age To Take Out Life Insurance?

Is there an age that is deemed best for taking out an insurance policy? Most people disagree with this notion and believe that it is better to let the events that happen in your life determine when you get life insurance. 

However, industry experts do not completely agree with this. According to them, there might not be the best time, but there is an ideal range. For them, it would be most ideal to get a life insurance policy before the age of 35. It does not matter if you are yet to get married, or if kids are not part of the plan for you yet. Getting a life insurance policy before this age will ensure that you get the best premiums available to you. When you get it later than this your premiums will rise significantly and you might start struggling with keeping up with payments.

On the other hand, there is such a thing as too early. Your insurance provider will probably tell you that most of their plans are on a term basis. If you pick up a policy too early, you might end up with a policy that won’t help you much in tackling your financial problems when it is needed.

What Else Affects The Cost Of Life Insurance?

Apart from age, there are a couple of other things that would affect the premium you pay on your insurance policy. One of such factors is your health. If you do not have a clean bill of health you might have to pay higher premiums because you are considered a bit more expensive to insure.

Your job and lifestyle choices could also mean that you will be paying a higher premium on your policy. If you have any risky hobbies, or you smoke, then you might have to pay a higher premium than other people. Finally, your gender might also play a role in the cost of your life insurance policy.

It is always a good idea to get your life insurance as early as you can, however, consider the option you are going for, and make sure that you are not getting it too late or too early. This will ensure that you do not end up with a policy that causes more harm than good.

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