What Age Should You Get Life Insurance?

The first thing to understand about buying life insurance is that you can never be too old, or even too young for that matter. There are no age limits. You just need to find the right company for you. Each life insurance company has different requirements, some may only insure individuals who are under 70 while others may insure individuals all the way up until they are 90. 

When exactly you should take out life insurance is totally up to you. Not many people know exactly what age they should take out a life insurance policy. You should realise that the sooner you invest in a life insurance cover the cheaper it will be. It’s important to take out a life insurance policy if you have dependents and loved ones who rely on you for their financial protection. The small life insurance cost will help to give them peace of mind that they will be able to pay off any outstanding debts or funeral expenses and be left in a good financial situation.

Could My Age Stop Me From Getting A Life Insurance Policy?

Age is undoubtedly a factor that an insurance provider will take into account when underwriting an insurance policy. However, it should never stop you from being able to take out a policy. 

The fact of the matter is the older that you get, the closer you are to death. Due to this, the older you are the higher your life insurance premium will be. This is because you are seen as a greater risk to the insurance provider and they, therefore, increase your premium to make up for this. 

However, age is not the only thing that an insurance provider will take into account when coming up with your insurance premiums. Other factors can be:  


Occupation – If the policyholder is in a job that is deemed to be dangerous or taxing on the body then you can expect someone of a similar age but who has a much safer job to have lower premiums. This is again because the more dangerous your job, the greater chance of serious injury or even death in the workplace. 

Smoking – Everyone knows the dangers of smoking and the fact that it can shorten your life expectancy. For this reason, it can have a huge impact on the insurance premiums that you get. This is again because the closer you are to death, the greater liability you are to the insurance providers and meaning you will most likely have higher premiums than a non-smoker. 

Medical & Health Conditions – If you have had a long history of medical conditions or a history of health problems then you are likely to have much higher insurance premiums as you are more of a risk to the insurance company.

What Is The Best Life Insurance For Over 50s?

As previously stated, there truly is no fixed maximum age to take out a life insurance policy. Your ability to take out a policy at an older age is very much reliant on the insurer and also the type of insurance that you wish to take out. The market is now flooded with companies that specialise in life insurance for over 50s as the demand is so huge. 

As you get over the age of 50 the most beneficial and affordable option for you would be term life. Term life insurance is where you are covered at a fixed rate and for a fixed amount of time. 

Benefits of term life insurance: 

  • Guarantees payment of a fixed lump sum as a death benefit to your beneficiary if the individual dies within the agreed term. The older you are, the more likely you are to pass in the term that you have agreed. 
  • You can often purchase policies that last from 10-40 years.
  • The insurance premium is normally a lot cheaper and far more manageable than the alternative whole life insurance. 

The alternative whole life insurance is far more beneficial for a younger individual as it gives you the option to have your premiums paid into an investment fund and hopefully make a return on the investment to help with the final payout. If it is successful then you will have an added bonus that may be added to your coverage amount. 


What Is The Best Life Insurance Policy For Young People?

Well, the younger you are the less the insurance type that you go with matters. The two main types of life insurance policies are fixed and whole life. There are a huge amount of benefits to both so it is important that you truly understand the difference between the policies before you decide which one to choose. 

Fixed Life Insurance – This is where you pay a fixed sum of money for a fixed period of time. If the individual does not pass in the agreed term then they will no longer be covered or entitled to a death benefit. 

You can find fixed life-term policies that range anywhere between 10 and 40 years. As you can imagine, the younger you are the less benefit you will have from a fixed life insurance policy as you would theoretically be likely to outlive your policy term.

However, with most fixed-term life insurance policies you can actually decide to change the policy to a whole life insurance policy at any point if you would like to upgrade for more protection. 

Whole Life Insurance – This is the type of policy that is guaranteed to remain for the entire lifetime of the individual as long as all payments are met. If you are young and healthy then you seemingly have longer to live than someone of older age or in poor health. Due to this a fixed life insurance policy may be restricting your chance of receiving death benefits in the event of your death, therefore, it could be a wise idea to change your plan to a whole life policy. 

The main benefit of a whole life insurance policy is that provided you meet all the payments, it will never run out. Therefore, it does not matter whether you live for another 70 years, you will be covered. During this time your monthly premiums are also guaranteed to stay the same so you do not need to worry about them rising as you get older. 

There are also many monetary reasons as to why whole life is far more beneficial to a younger individual. One of the key benefits of a whole life plan is its ability to build cash value over time. A small portion of each premium that you pay will be added to the overall cash value of your policy. This is money that you can take out at any point if you may need it for any reason. However, be warned that whatever you take out is taken away from the overall death benefit of the policy. 

Diaspora Insurance Life Cover

Here at Diaspora Insurance, we have been providing life insurance to the diaspora community for over a decade. During this time we have helped countless families and individuals to cover both themselves and their loved ones. Before us, the diaspora community was often left confused and uncovered when it came to insuring themselves but luckily we have succeeded in our mission to help as many families as possible.

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