How Old is Too Old When it Comes to Life Insurance?

Enjoying Retirement

When looking to purchase life insurance, how old is too old? The only true answer to this question is: when you are over the age of 85. Keep in mind there is a big difference between being too old to purchase life insurance versus what will be too expensive.

In my opinion, the best time to purchase life insurance is when you are young and possibly, in the best health you will ever be in. The irony of this is, it’s the time when many young adults won’t even consider purchasing life insurance. Many young adults think they are invincible and don’t need it. But, I believe, this is the best time to purchase it.

Back to our true topic of how old is too old. If you do not have any life insurance, the only time that you are too old to inquire about life insurance is if you are over the age of 85. The best way to answer this question is what can you afford to pay for your life insurance.

Here is a good example of how life insurance rates can quickly increase. Let’s take a 32 year old male in very good health who is looking for a $500,000 30 year term policy. He could be looking at an annual premium of approximately $549. If he had waited an additional 5 years to obtain this same coverage, if his health is in the exact same condition, he would instead pay approximately $629 annually. This may not seem like a large increase, but if he was to wait an additional 5 years, and if his health is exactly the same, the annual premium would instead be approximately $979. The final example would be if that same male, now at 52 years old was looking into the same coverage, his approximate annual premium would be $2,435. Keep in mind, he would have to be in the exact same health as he was 20 years earlier. My question is how many of us are in the same health as we were 20 years ago?

So to sum up how old is too old to purchase life insurance, as long as you are under the age of 85 and can afford to purchase coverage, then I suggest you do so. In my opinion, having some life insurance coverage is better than none. Keep in mind, your age and health are the best guides as to when you should purchase your coverage. 

About the author: Jim Marcinkewicz has been in the life insurance business for over 6 years. He is a big supporter of the American Red Cross and teaches both CPR and First-Aid classes. With two daughters in college, Jim knows the expense it takes to care for your family and enjoys helping others prepare their futures as well. You can reach Jim at 1-800-651-1953 or JMarcinkewicz@Pivot.com.