Are you in your 50s or 60s and wondering if you could take out life insurance? While it’s always best to get cover sooner rather than later, there’s still a chance you could enjoy the peace of mind it brings.
Ideally, you want to get life insurance cover while you’re young and healthy as this often leads to lower premiums. However, many people only start to think about life insurance in their later years. If this is you, you’re not alone and yes, it’s possible to still get a policy – but this will depend on your insurer.
The Maximum Age For Life Insurance
In South Africa, there’s no law regarding the maximum age that someone could take out life insurance. Still, most insurance companies have their own age limit and it’s usually 65. This is because, as people age, their risk of mortality increases. Setting an age limit helps your insurer manage their potential financial risk, which makes complete sense. If everyone only took out life insurance policies in their 80s, they’d only be paying premiums for a short time.
Simply put, someone in their 60s is more likely to pass away than someone who’s in their 20s. This means that their insurance company has a much higher risk of having to payout a large sum before the sum of their premiums has covered it.
Remember, age limits can vary among insurance companies. While 65 is the common age limit, you might still be able to find a life insurance company willing to offer you a policy if you’re a little older. However, your premiums are likely to be a lot higher than they’d would have been if you’d taken a policy out in your younger years.
