Is It Ever Too Late to Buy Life Insurance?

It's normally recommended to buy life insurance at as young of an age as possible. Insurance companies set premiums based on the risk of death during the policy. The younger you are, the lower your risk will be, which means you'll pay less.

People who didn't buy life insurance when they were younger may wonder if it's too late to get a policy. After all, you still want to ensure that your loved ones won't have money troubles when you pass away. There are age limits for life insurance, but they might be higher than you think.

Age limits to buy life insurance

The cutoff point for buying life insurance depends on which type of life insurance you want. There are two categories of life insurance:

• Term life insurance: Lasts for a set time period, such as 10, 20, or 30 years. The insurance company only pays the death benefit if the policyholder dies during that time period. This is the most affordable life insurance option.
• Whole life insurance: Lasts for the policyholder's entire life and pays a death benefit when the policyholder dies. Because it doesn't expire, whole life insurance is much more expensive than term life.

Insurers usually have an age limit of 65 or 70 for term life insurance, or 75 at the oldest. They also often limit how long of a term seniors can get. A 65-year-old may be able to get 10-year term life insurance, but not a 30-year policy. There's too much risk of the policyholder dying during the latter.

Age limits are more flexible with whole life insurance. You could find a whole life policy at 80, 85, or even 90 with some insurers. Options will be limited the older you are, and there could be much lower coverage limits than what's available for young adults. Some insurers may only offer final expense insurance, a smaller policy designed to cover end-of-life expenses.

While not absolutely everyone can qualify for life insurance, it's available until late in life. Keep in mind that it gets much more expensive. For $10,000 in final expense insurance, men over 85 generally pay $183 to $286 per month, according to Lincoln Heritage. Women at that age will pay $136 to $211 per month.

How long do you need life insurance?

Since it costs more to buy life insurance as you get older, retirees should carefully consider if they need it. Adults normally get life insurance for one or more of the following reasons:

• To support loved ones who depend on their income
• To pay for end-of-life expenses, such as funeral and burial costs
• To pay off any debt they have when they die

Life insurance is important when you have loved ones who rely on you. If you have a spouse and children, then a life insurance policy could replace your income if you were to pass away.

But for older adults, there often comes a point when life insurance isn't necessary anymore. If you're 65 and your kids are now adults who don't rely on your income, then you don't need life insurance for that. If you're also debt free and have enough money in your savings account to cover end-of-life expenses, then you're likely fine without a life insurance policy.

Older adults can buy life insurance up until 85 or 90, if they need it. If you want to leave behind enough money to pay off debt or cover final expenses, then getting a policy could be your best option. Make sure to compare your options to find one with the coverage you need and that fits your budget.