How Old Do You Have to Be to Get Life Insurance?
Discover how your age shapes every aspect of obtaining life insurance, from initial eligibility to policy terms and options.
Life insurance provides a financial safety net for loved ones in the event of an insured individual’s passing. It offers financial protection, helping beneficiaries manage expenses, cover debts, or maintain their standard of living. Age significantly influences the ability to obtain life insurance, determining both eligibility and policy terms.
Minimum Age Requirements
The legal minimum age to purchase a life insurance policy in the United States is generally 18 years old. This requirement aligns with contract law, which dictates individuals must have the legal capacity to enter binding agreements. While 18 is the common age of majority, some state regulations may have variations. Many individuals wait until they have dependents or significant financial obligations before considering life insurance, even if legally eligible at 18.
Maximum Age Considerations
There is no universal maximum age limit for all life insurance policies across all insurers. However, companies generally have upper age cut-offs for new policies, varying by product type. For traditional term life insurance, new coverage can be difficult to obtain after ages 75 to 80, though some companies offer policies up to 85 or 86.
Whole life policies, which provide lifelong coverage, may be available to applicants in their 80s, sometimes up to age 90. These limits relate to increased health risks and mortality rates associated with advancing age, which raise the insurer’s potential payout risk. For older individuals, specialized options like guaranteed issue or final expense policies might be available, often with lower coverage and higher premiums, designed to cover end-of-life costs.
Life Insurance for Children
While minors cannot legally purchase life insurance for themselves, parents or legal guardians can obtain policies on their behalf. Policies are available for children from birth, with some for infants as young as 14 days old. These are typically whole life insurance, offering lifelong coverage and building cash value.
Another option is a child rider, which can be added to an adult’s existing life insurance policy. Parents consider these policies to lock in insurability at a young age, ensuring the child can maintain coverage regardless of future health, and to potentially provide a financial asset for their future. The adult purchasing the policy typically owns and controls it until the child reaches adulthood, when ownership can often be transferred.
How Age Impacts Your Policy
Age significantly influences both the cost and availability of life insurance. Premiums are directly correlated with age; younger applicants generally pay less, while older applicants pay more. This is due to the increasing mortality risk as individuals age, meaning the likelihood of an insurer paying out a death benefit increases. Premiums can increase by an average of 8% to 10% for every year of age, though this percentage can vary.
Beyond cost, age also affects the types of policies available and the underwriting process. Younger individuals typically have access to a wider range of policy options, including longer-term policies, and may undergo a less stringent underwriting process. As applicants age, certain policy lengths, such as 30-year term policies, may become unavailable or much more expensive. Older applicants might find more options in simplified issue or guaranteed issue policies, which have less rigorous health questions or no medical exam. However, these often come with higher premiums and lower death benefits.