AD Banker Comprehensive Practice Exam

At what age may a minor contract for insurance on his or her own life?

1. 15

2. 10

3. 14

4. 12

The correct answer is: 15

In many jurisdictions, the legal age for a minor to enter into contracts for insurance on their life is typically set at 15. This is because the law recognizes that at this age, minors possess a sufficient level of maturity and understanding to comprehend the implications and responsibilities associated with such contracts. At this age, they can make informed decisions regarding their life insurance needs, which often involves understanding the benefits of providing for their family or securing their financial future. This provision also reflects a societal recognition that young individuals, particularly those who are engaged in part-time work or assuming other adult-like responsibilities, may benefit from having life insurance coverage in place. The other ages listed in the options are generally below the threshold established in many states for binding insurance contracts, thereby limiting a minor's ability to independently secure insurance at those ages.