There is still plenty of time, right? While there are somethings in life that can be beneficial through delaying them, delaying life insurance could end up costing you more than you have bargained for.
We have received many requests on whether it is possible to get life insurance once you have hit the 65 year old mark - mostly from people looking to cover their parents. But here is what you need to know before it is too late.
Can you get life cover at 65 years of age?
Waiting to take out life cover when you are 65 years old could end up costing you. Unfortunately, most insurers in South Africa are less likely to cover people who are over retirement age. Many life insurers draw this line at age 65. Although cover can carry on indefinitely until you pass away if you’ve taken the policy out beforehand, the majority of life insurers in South Africa will not allow you to take a policy with them for the first time if you are over 65. Remember that not all life insurers will disclose their maximum age limit on policies.
Why will it be difficult to get cover?
The reason for this is, quite simply, because of your risk. As you get older you become more risky to insure as your health and age mean that you’re more likely to pass away than someone in their thirties, for instance. This means that insurers run a higher risk of having to pay out a large fee (possibly even millions) before they’ve had a chance to come close to covering this amount with premiums collected over years.
The longer you wait the costly it becomes
The golden rule when it comes to taking out life cover is to get it while you are still young and healthy, but why? Firstly, premiums are affordable, and it can grow with you as you age. The second reason for taking out life cover when you are young is that you pose less of a risk to insurers. While it is still possible for you to get cover at 55 years old, you could be given a higher premium because of your risk profile which grows each year. The best time is now.
