Age Limit

The Age limit of an insurance policy is the maximum age that a person can be in order to be eligible to purchase it.

The age limit for different types of policies can vary.

The main reason why age limits are placed on policies is that the older a person gets, the higher the probability that health problems would arise soon.

From a financial standpoint, insurers might find it impossible to profit from the elderly who buyer insurance at a late age as there’s a high possibility that very little premiums would have been collected before claims for medical expenses are filed.

Yet from different point of view, it can be argued that the needs for seniors in or near retirement age can differ greatly from someone who is much younger and still slugging it out in the workforce.

For this reason, some insurers do offer special plans specifically conceptualized to meet the need of the elderly.

However, premiums can be expected to be high. And terms like waiting periods and deferred periods can be expected to be present.

In certain cases, even though an age limit is set for particular types of policies, insurance can still be underwritten provided certain conditions are met by the applicant.

It must be noted that some health insurance plans cover an insured person up until a certain age, some provide cover throughout the whole life of the policy holder.

So those who are still deciding whether to u sign up for a plan has to identify their needs before making a choice.

It is also useful to note that while age limits can be set on policies, this often only describe the maximum entry age. So one would be able to sign up for a policy before the age limit and enjoy the coverage past the age limit as long as premiums continue to be paid.

For example, if the entry age limit of a medical plan is 75 years, then a person can sign up at age 74 and continue to be covered past age 75.

Medishield Life is an example of an insurance policy with no age limits.

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