What is the best age to buy a term insurance plan in India?

Financial stability is one of the most important things in life. We all come across situations in life in which we need money, whether it is medical emergencies or paying the education fees for our kids, etc. If you are an earning member in your family, you can assure your family of regular income. However, what about a situation in which you are not there anymore? Well, even in one such circumstance, you can provide your family with the financial support they need. All that you need to do is to buy a term insurance plan.

One of the most important things about term insurance policies is the age limit. Many people wait till late and when they are 35 years old and above, they buy a term plan and end up paying a higher premium. Although a term plan can be bought between 18-60 years of age but the earlier you buy it, the better premium rates you will get. Let us discuss the various age groups of people who can buy a term insurance plan.

During the 20s

The 20s is the age group in which most people complete their education and get started with their careers. In many cases, people go for education loans and if something unfortunate happens to them, it is the parents who bear the burden of the loan. This is when term insurance can play a vital role. The death benefit received by the beneficiary of the term plan can be used in paying off the loan debt. One of the benefits that you will get upon taking the loan at such young age is that you will mostly be free of any health risk and even the liabilities are low. Therefore, the premiums that you will have to pay will also be lesser.

During the 30s

The 30s is the time when most people settle with a good profile in their career, get married, buy a car, and even purchase a home. This is the age range when liabilities increase, and if they take a loan, they have a constant pressure of paying it off. In many cases, people in their 30s also have elderly parents who become totally dependent on them. They even have to bear the medical expenses of the elderly parents. Although you do a lot good in your career during this age cap than in your 20s but along with savings, you would also need to look for other options to take care of all the liabilities, especially for a situation in which you pass away all of a sudden. For such a situation, you should buy term insurance which can take care of all the liabilities.

During the 40s

This is the age cap the responsibilities shift. Many of the loans are paid off; however, the responsibilities just get double. A term insurance plan comes as a great help to take care of the higher education of your children in your absence. The amount of premium that you would need to pay in this age cap is higher than your 20s or 30s.

During the 50s

You can buy a term insurance plan even when you are in your 50s. However, this is also the age cap when you should buy a term plan as soon as possible. This is the age cap when most people have health risks and even have some kind of health condition. And while you are buying a term insurance plan at this age cap, you should also buy riders. This will give you add-on coverage to you like critical illnesses. Riders are optional and even if you buy one, you just have to pay an additional premium.

During the 60s

This is the age when most people retire from their jobs. And taking term insurance at this age cap is not very advisable. However, if you continue to work even after 60 years of age, you can opt for a term plan that will give your family a high return on your demise within the term plan tenure.

If you want to know further about the term insurance age limit, you can visit the IIFL’s website. On finding the apt one, you can even go ahead and buy it.