Until what age can I purchase or transfer life insurance?

Does age influence the cost of hiring or transferring life insurance?  

To hire life insurance or transfer to a new insurer, the age of the client must be taken into account. Source: new insurer.

This is a determining factor in whether insurance companies can accept the contract performed and the premium to be paid.  

Therefore, a client's age can influence the cost of life insurance. Why? In theory, the older the policyholder is, the more risk the insurer considers to exist. This is because the risk of diseases, accidents, injuries, and death increases.  

In other words, the logic holds: the older the client, the more they will pay for their life insurance. However, most insurance companies have updated the policies they offer, due to the increasing life expectancy, now providing insurance options with guarantees up to 100 years of age.

However, in these cases, if you intend to take out or transfer your life insurance, you should consider that insurance companies may suggest a high premium to pay or even refuse.

But is there an ideal age to take out/transfer a life insurance? How do insurance companies calculate risk qualification?

Actuarial age in life insurance: How does it work?  

Ideally, for life insurance, the age should not exceed 40 years as the cost will be lower than if the age exceeds 55 years.  

This is because, to assess a client's risk in a life insurance, insurers take into account the actuarial age.  

Actuarial age considers the date of the nearest birthday at the time the contract will be signed. The date can either coincide with your actual age or with the age you will reach.

In other words: Imagining that you turn 54 years old on April 23, 2023, and are taking out insurance on June 1, 2023. Your actuarial age is 54 years, as your birthday is closer to the moment you will sign the contract.  

But considering that it would be 55 years old on July 23, 2023, by now contracting life insurance, your actuarial age would already be 55 years. And, then, the insurer would already consider that there is a higher associated risk and could propose a higher premium to be paid for the policy. Since this interval, as a rule, makes a difference for insurers, as we will see next. premium to pay

What is the impact of actuarial age on life insurance?

For insurers, there are age intervals that make a difference, even if they are just a few months apart. It varies according to each entity, but usually the most significant limits are: 40, 50, and 55 years old. These ages define a type of risk, one from another.

And it's as certain as a customer being 39 years old and being able to pay significantly less for the life insurance premium than a customer who is 40. The same happens between 49 years old and 50, and between 54 years old and 55. The limited numbers make a customer lower or higher risk.

Therefore, if you want to hire or transfer your life insurance and are within the delimited intervals, it is time to do so. Because the longer you wait, the more you will probably have to pay for the insurance. In these cases, it is always important to act as soon as possible.

If you need help with hiring or transferring life insurance, agents from Poupança no Minuto can mediate the process between you and the insurers. In addition to providing a fast and assertive service, they find the most appropriate solution to your context for free.