Right age to buy term insurance

What is the right age to buy a Term Plan?

Early 20s, mid 30s or late 40s? Understand why term insurance is relevant for you

Life throws up many surprises and is full of unexpected events, ones that do not come with any warning. There are certain events that can cause a severe impact on your life causing permanent damage or even death. In such a situation, your family could be left in a state of financial distress.

During such time, an insurance plan can protect the basic financial needs of the family after unfortunate event of death of life insured/policy-holder.

While thinking about a Term Plan, one important question that leaves most people confused is “What is the right age to buy a term insurance plan?”

Anybody between the age of 18 to 60 years can buy a term insurance plan, yet factors such as income, number of dependents, future needs, and existing liabilities help in deciding the right term of policy.

Here are a few scenarios that will describe the term insurance needs according to different age groups:

In Your 20s     

In your 20s, a term insurance plan is relatively inexpensive, as the risk to insure is lower which increases with age. Moreover, you would have just started your professional career and have lesser responsibilities. During this age, a term insurance plan can help you pay off your existing debt, such as student loans, and also support your parents in your absence.

You can get Rs. 1 Crore cover for as low as Rs. 495/month (For 21 year old, non-smoker male).

In Your 30s

When you are in your 30s, you would have a family and kids to look after. Income tends to rise, but so do financial responsibilities and liabilities, such as home loans, car loans, and other long-term loans. Taking into consideration the family needs and responsibilities, you can to opt for a term plan with a monthly income option that will take care of your family’s day to day expenses along with the lumpsum payout. You can get Rs. 1 Crore cover for as low as Rs. 819/month (31 year old, non-smoker male).

Late 40s

At this age, your long-term debts are covered; however, responsibilities such as higher education of children and retirement planning arise. Also, health risks seem to rise with age. Therefore, to cover familial responsibilities, retirement plans, liabilities, etc., you will require greater financial protection, thereby calling for a term policy with a greater cover. You can get Rs. 1 Crore cover for as low as Rs.1548/month (41 year old, non-smoker male).

Thus, deliberating on the above mentioned factors and scenarios, one can very well infer that it is best to buy a term plan at an early age. You can start with a free quote to understand how much cover you can get basis your profile, and make an informed choice.


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