Until what age can I hire or transfer life insurance?

Until what age can I hire or transfer life insurance?

Are you going to take out life insurance at an older age? Or do you intend to transfer your life insurance to a new insurer halfway through the contract? We explain in this article what influence age can have on the cost of life insurance.

11 Aug 20234 min

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

Both for hiring life insurance, as well as transferring the current one to a new insurance company, it is necessary to take into account the client's age.

This is a determining factor in whether or not insurance companies can accept the contract, as well as in the premium to be paid.

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

In other words, the logic works: the older a customer is, the more they will pay for their life insurance. However, most insurers have updated the policies they offer due to the increase in life expectancy, now offering 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 hire/transfer a life insurance? How do insurance companies calculate risk assessment?

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 policy, insurers take into account the actuarial age.

The actuarial age considers the closest birthday to the moment when the contract is signed. The date may coincide with your actual age or the age you will reach.

That is: Assuming you turned 54 years old on April 23, 2023, and are purchasing the insurance on June 1, 2023. Your actuarial age is 54 years, since your birthday is closer to the moment you sign the contract.

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

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 typically, the most significant limits are: 40, 50, and 55 years old. These ages define one type of risk from 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 years old, and between 54 and 55 years old. 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's time to do it. Because the more you let it pass, the more you will probably have to pay for insurance. In these cases, it is always important to move forward as soon as possible.

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

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