Categories: Insurance

Term Insurance Age Limit – All You Need To Know

Term Life Insurance is designed to provide a high sum assured at affordable premiums. This life insurance is better for sustaining the lifestyle without compromising on your dreams. However, many young Indians do not understand the importance of insurance and postpone investing until they reach the age of 40-50, which has multiple disadvantages. Also, if you delay buying the term life plan, it will become more expensive. 

Investing early in life offers unique benefits. This article will discuss the required age limit for insurance, reasons to buy a term plan early, the benefits, and how the advantage varies with age. 

What is the Term Insurance Age Limit?

Term insurance age limit varies between the ages of 18 to 65 years. As people age, they face health issues, and as their health deteriorates, insurance companies view them as a higher risk. They likely increase the premium to cover their cost. However, most term insurance providers do not sell new policies to people over 65. These limitation shows that you can only choose 10-year tenure if you purchase a plan in your 60’s.. 

Best Time to Purchase Term Life Insurance

  • In your 20s

Term insurance provides ample benefits when purchased in the 20s. In India, most of the young individuals live with their parents during their 20s and they have to adjust accordingly to their daily expenses. Most of us do think that we don’t really need  insurance at this age, but this isn’t true. At this age, an individual can purchase a plan at a very low cost and enjoy coverage for a lifetime. Moreover, if any unfortunate incident occurs to someone at the age of 20, their investment can be of great help.

  • In your 30

At 30, you are at that stage of life where you might have chosen a life partner or are planning to start a family. During this time, you’re responsible for educating your child and fulfilling your spouse’s and retired parents’ requirements. In this stage, purchasing a term life will benefit you and your dependant for long-term. Term insurance plans can help you offer a more secure financial life to your family in your 30s, ensuring that your family will not be burdened with any financial restrictions in your absence.

  • In your 40s

As you enter your 40s, you might worry about your retirement planning. If you’re earning a potential income at this age, your family may struggle in your absence. Buying a term life insurance in your 40’s will help your child pursue their higher education abroad and finance your family’s needs after you.

  • In your 50s

While this is generally the best time to purchase term life insurance, it’s also important to consider your specific situation. If you have a family and are earning an income, taking out a policy now will ensure that they are taken care of should something happen to you. Even if you don’t have dependents, buying this type of insurance at this age can help you prepare for any future financial obligations.

Reasons to Buy a Term Plan

Term life insurance is a meaningful yet simple product designed to fulfill the needs of the individual who is gearing up themselves for retirement or any other stage. Here are some reasons why one must buy a term plan- 

  • Low Premium and Large Cover

The coverage offered by this insurance is sustainable, and premium covers are quite affordable. 

  • Financial Dependents are Protected

It protects your loved ones who are financially dependent on you. Term Life insurance will free them from financial burdens after their unfortunate demise. 

  • Insure Assets

A term plan helps in securing the future of your family by providing a financial cushion, in case of untimely demise or disability. It also serves as a valuable tool to secure your assets.

Types of Features of Term Life Insurance

There are multiple features of term life insurance, including:

  • Low Entry Age

The most exciting feature is anyone can acquire this insurance at the very early age of 18. 

  • Provide Long Term Protection

It offers long insurance coverage and financially protects your family for a very long time. 

  • Adjustable Cover

You can decrease or increase the sum assured on your financial needs. 

Conclusion

Term Insurance provides benefits at every life stage. Whether in your 20s, 30s, 40s, 50s, or even 60s, term life insurance will always protect you and your family after your retirement or any unfortunate demise. 

Editor

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