One of the questions we’re asked time and again is “when is the right age to take out life cover.” The short answer is that your situation might be unique, but the best time is always sooner rather than later.
But First, What Is Life Cover?
Life cover, also known as life insurance, is a policy that pays out a sum of money to your loved ones or dependents in the event of your death due to an illness or accident. This way, you can rest assured knowing that you’ve created a financial safety net for anyone depending on you.
Think About The Future
If you’re single and child-free by choice, you might not think that life cover is important. But think about the future. Are you confident that your parents could support themselves throughout their golden years if you weren’t around to help? One of the many upsides of life cover is that you get to choose your beneficiaries and they can be of any age, young or old.
YOUR Age, However, Matters
While your beneficiaries can be of any age, your age will affect your premiums. Generally speaking, the younger you are when you take out life cover, the lower your premiums will be. This is because younger people are generally considered to be lower risk and less prone to age-related health problems than older people.
While there’s nothing stopping you from taking out life insurance in your later years, the majority of life insurers in South Africa draw the line at age 65. If you’ve taken out a policy before this big birthday – don’t worry – your coverage will carry on indefinitely until you pass away. However, most life insurers will not allow you to take a policy out for the first time after the age of 65 and many won’t disclose the age limit on their policies.
Ultimately, the decision to take out life cover is a personal one that should be based on your individual circumstances and needs. There is no "right" age to take out life cover, but if you have dependents or significant financial obligations, taking out a life insurance policy can protect their financial future and, the sooner you do it, the lower your premiums will be.
