Categorized | Life Insurance

When am i Too Old to Buy Life Insurance?

While most life insurance companies would stipulate an Age Limit on life insurance at 55 – 65, there are life insurance policies that can be bought up until the age of 85.

Life insurance is all about securing your future and ensuring that you bequeath tangible value to your kith and kin after your lifetime. And the need for life insurance, in general, takes higher priority as people age,since it is a normal tendency to overlook negative prospects when people are young and healthy-it is only with time that the age factor creeps in, making people take serious note of life insurance policy. But, as people age,the question arises as to what is the maximum age for life insurance,and if they are too old to buy                   life insurance.

Here are some aspects that would help you settle down with your question about age factor in terms of life insurance policy:

•What is the Normal Age Limit for Life Insurance Policy?
This depends on the insurance company. Prospects of life insurance Claim play an important part in the insurance companies stipulating the maximum age at entry. In most cases, the age factor into consideration would be anywhere between 55 and 65.

•Why is age factor a consideration in Life Insurance?
The reason has much to do with the relative probabilities of life insurance claim. In general, life insurance claim depends on the average life expectancy of individuals who buy life insurance policy, which, currently in India, is 63 for males and 66 for females, according the a report by the WHO.

•What are the other considerations in terms of age factor?
The general market for life insurance Policy is the population of working age, aiming towards retirement. Hence, many companies stipulate the maximum age for insurance in the region. Further, the best of health is in the younger ages, and people are only expected to be susceptible to health complications and medical conditions as they progress, which, again, reflects in life insurance claim.

•Am I too old to buy life insurance?
Probably not, though the answer depends on how old you actually are. It should be heartening to know, if you are concerned about age factor playing a decisive role in your eligibility for life insurance policy, that there are organisations that have recently increased the maximum age for life insurance to 85. So, you may still be eligible for a life insurance policy, as long as you are not too late for the increased age limit for life insurance.

•Should I pay high Premium because of the age factor?
As you may expect, yes, the longer you take to buy life insurance policy, the higher the premium that you would have to pay, again, considering prospects of life insurance claim. Further, being a smoker or having other Pre-existing medical conditions would also reflect on prospects of life insurance claim, which would translate into higher premiums. 

•Are there medical checks involved?
The good news is that you could buy Term insurance at an advanced age, without having to submit yourself to medical checks, as you may get it confirmed with the provider of life insurance. However, there may be caps on sum Assured as well as limits on the maximum sum insured, if life insurance claim were to be made within the first two years of purchase of the life insurance policy.

So, do not be worried about the age factor and make your move in buying life insurance before it gets too late. Shop around and go for the life insurance policy that is best for you.