Does life insurance have age limits? Here’s everything policyholders as well as beneficiaries need to know. It’s true – your age does play a big role when it comes to life insurance.
As an example, you have to be 18 years or older to invest in a life insurance policy. The age of 65 is significant too.
To explain, in South Africa, there’s no law that dictates an age limit that would prevent you from applying for a life insurance policy. However, most life insurance companies aren’t likely to issue a policy to those over the age of 65. Why? The older you get, the more likely you are to develop health conditions that would make you a high-risk client for your life insurance company.
Your age also affects your premiums
Your likelihood of being issued a life insurance policy isn’t the only thing that’s affected by your age – it affects your premiums too. As we mentioned, the younger you are, the more likely you are to be fit and healthy, which is why it pays to take out a life insurance policy sooner rather than later so you can lock in lower premiums.
While MiWayLife prides itself on being affordable, the premium you’ll be offered in your 20s or 30s will typically be much lower than what you’d pay if you had to take life insurance out in your late 40s or 50s. In short, your health and youth can serve as your “discount”.
A bit about age and eligibility
If you have young children or are taking care of ageing parents, you’ll be glad to know there are no age limits when it comes to life insurance beneficiaries. Nothing is stopping you from listing your baby or 89-year-old mother as a beneficiary. Still, when it comes to listing minors as beneficiaries you might want to consider it carefully. According to South African law, minor children can’t directly inherit money or assets – including life insurance payments. This means that, if your beneficiary was under the age of 18, you’d have to set up a testamentary trust that could receive the payout on their behalf. Alternatively, a legal guardian – possibly their other parent – would have to manage their payout until they turn 18. This is why, many parents choose to make their child’s other parent the beneficiary of their life insurance if they’re still minors then update their policy to include their children directly after their 18th birthdays. That’s the great thing about having a life insurance policy with MiWayLife, we make it easy for you to make changes so your life insurance policy serves you best at every stage – and age – of life.
Did You Know:
You can now take out life cover with us online in a few simple steps. No calls and no agents! Make sure to take care of those you love today by buying MiWayLife cover online.
