Minnesota Life Insurance License Practice Exam

The maximum age for a term life insurance policy adjustment is generally?

1. 65 years

2. 70 years

3. 75 years

4. 80 years

The correct answer is: 75 years

The maximum age for a term life insurance policy adjustment being generally 75 years reflects the common practices of insurance companies regarding the renewability and adjustability of term life policies. As individuals age, the risk associated with issuing new or adjusted insurance policies increases significantly. Most insurers have established parameters for maintaining the coverage as clients age. Generally, policyholders may find it challenging to make adjustments to their term life insurance after crossing that 75-year threshold, as the likelihood of health concerns increases, which could affect the risk assessment by insurers. Typically, policies provide options for renewal or conversion to whole life insurance up to a certain age, ensuring that the insured can still obtain necessary coverage within a reasonable limit, but those adjustments often become limited as one approaches 75. Beyond this age, the options for new policies or adjustments may diminish further due to heightened risk. Understanding this age threshold helps individuals navigating their life insurance needs recognize when they may need to secure their coverage more proactively.