Age Limit


Age limit is the minimum and maximum age bar for entering in any insurance contract.


The limit of years during which you can buy an insurance policy is called the age limit. It defines eligibility when individuals can invest in the life insurance policy.

Insurance policies are offered after evaluating the risk. Age is one factor that indicates the premium paying capacity, health status, etc. which is why mentioning age limit is important. At a young age 18 years is the time when an adult can start earning legally and be independent. Hence, this is often the minimum age limit in the policy. Similarly, considering the aspects of premium paying capacity, the higher age limit is 65 years in common.

An insurance company wishes to write a profitable business and at the same time wishes to provide benefits to the insured. Age limit is important criteria while underwriting a business as with the increasing age, the risk of contracting disease is higher.

Setting an age limit, sets a clear picture for the time horizon for which policyholder is looking to invest. It gives an idea of maximum age upto which he can invest.


Kavya, aged 21 years, got her first job and so she wanted to start the investments as early as possible in life. Kavya wanted to buy a term plan and so she checked the age limit under the policy. She thought she could not buy a policy until she turned 25. But after she checked, she realized that the minimum age limit was 18 years. Kavya immediately purchased the policy for herself to build financial security for her family.