Life License Qualification Program (LLQP) Practice Exam

What is the minimum age at which a person can typically be issued a life insurance policy?

1. 10 years

2. 18 years

3. 21 years

4. 25 years

The correct answer is: 18 years

A person can typically be issued a life insurance policy at the age of 18 because this is generally the age at which individuals are legally considered adults and can enter into contracts. Life insurance is a contract between the insurer and the policyholder, so the insured needs to be of legal age to consent to the terms of the policy. Moreover, insurers often set their minimum age requirements based on the understanding that individuals aged 18 and over typically have the capacity to make informed decisions about financial products, including insurance. Furthermore, life insurance policies often require the insured person to have an insurable interest, which generally applies when a person reaches adulthood. While younger individuals may certainly be able to purchase insurance in certain scenarios (such as through a guardian), the standard minimum age is 18, making it the most commonly accepted threshold in the industry.