How Old do You Have to be to Purchase Life Insurance?

To purchase a life insurance policy, you must be old enough to enter into a legally binding contract. For a minor to have life insurance, it will need to be purchased for them by their parent or legal guardian. But to purchase your own life insurance policy, you must be at least 18 years of age.

If you purchase a policy when you're 18 years old, you'll be able to lock in some of the lowest premiums possible. On the other hand, it might not be prudent to purchase a policy at that age unless you've been hit with serious burdens in life. Most people wait until they've established their careers and families before they purchase life insurance policies. People generally don't even think about life insurance until they're in their 30s or 40s, when mortality is far off in the horizon yet low-rate premiums are still abundant. But regardless of which age you find it necessary to purchase a life insurance policy, there will be many options to choose from if you're legally old enough to sign a contract.

Variations on Life Insurance Options

People buy life insurance policies for numerous reasons. If you're relatively young, you could lock in low premiums on a permanent policy that will grow in value over the course of your life. Whether you choose a whole life or universal policy, your premiums will build upon a cash value table that you can also tap for major expenses in life. The guaranteed benefits of high payouts and cash value are just two reasons why whole life and universal policies are amongst the most popular forms of permanent life insurance. Permanent policies are usually chosen by people who seek to build large nest eggs to care for loved ones in the end.

An entirely different option for people seeking life insurance is term coverage, which comes in various durations with much lower premiums. People will generally buy term insurance to pay off debts or provide for their loved ones, though some people are simply drawn towards the lower premiums. A term policy can be chosen for short durations of 5 to 10 years, or for longer spans in the 20 to 30 year range. If the policy is active at the time of your death, and there haven't been any beneficiary changes, the payouts will be made to the people, charities or debt agencies that you list as your beneficiaries. Term policies can be an affordable way to care for your family and honor your lingering financial commitments.

Settling On a Term Plan

If you've set your sights on the term insurance option, you should set aside some time to find the best offers available in your area. Whether you opt for a term of 5 years or 30, you'll need to determine that your issuing company is a trustworthy provider. You'll also need to speak with agents from each company for full clarity on their rules and conditions before you sign any contracts. Life insurance policies are a commitment of your faith, money and time, which makes it crucial for your providers to deliver the exact benefits that you'd rightfully expect from a form of coverage.

A life insurance policy can be beneficial to hold, whether you're young, middle aged or older. If you choose to go with a term insurance policy, you should discuss all your reasons and concerns beforehand with your agents to ensure that your term will deliver. Even if you only buy a short term policy, you'll want your premiums to build into big benefits.

Free, no-obligation quotes from multiple companies

Your information is safe and secure

"Thanks for making it so easy!" - Marlene Q, Austin TX