Until what age can I take out or transfer life insurance?

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

To hire life insurance or transfer the current one to a new insurer, the customer's age must be taken into account. Visit new insurer for more information.

This is a determining factor when it comes to whether insurers can accept the contract or not, as well as in the premium to be paid.  

Therefore, a client's age may have an influence on the cost of life insurance. And why? In theory, the older the policyholder, the more risk the insurer considers to be associated. This is because it increases the risk of diseases, accidents, injuries, and death.  

In other words, the logic works: the older a client is, the more they will pay for their life insurance. However, most insurance companies have updated the policies they offer, due to the increase in 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 sign up/transfer a life insurance policy? 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 old as the cost will be lower than if the age exceeds 55 years old.  

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

Actuarial age considers the nearest date of birth to the moment the contract will be signed. The date could 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 getting insurance on June 1, 2023. Your actuarial age is 54 years, since 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, when contracting the life insurance now, your actuarial age would already be 55 years old. And then, the insurance company would already consider there to be a higher associated risk and could propose a higher premium to be paid for the policy. Since this interval usually makes a difference for insurance companies, as we will see next. premium to pay.

What is the impact of actuarial age on life insurance?  

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

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

Therefore, if you want to hire or transfer your life insurance and you are still within the defined intervals, it's time to do it. Because the longer you wait, the more you will probably have to pay for 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 of Poupança no Minuto can mediate the process between you and the insurance companies. Besides providing a fast and accurate service, they find the most suitable solution for your situation for free.

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