Once you have purchased your policy, the premium amount will remain unchanged till the end of its term. So, you do not have to pay any extra premium, even though your age increases.
What is the Age Limit for Term Life Insurance?
Like other insurance policies, term insurance also comes with the eligibility criteria for entry age. You can purchase this policy only if your age falls within the age limit for term insurance. Nevertheless, this policy helps you secure your family's financial stability in case of your unforeseen demise.
Therefore, you should ideally get yourself covered as quickly as possible. Moreover, from the perspective of cost-effectiveness, it is also advantageous to purchase this policy at an early age.
What Are the Minimum and Maximum Age Limits for Term Insurance?
The age limit for term insurance varies from one insurance company to another. Here are the standard age requirements that you will come across in the eligibility requirement of maximum insurance company:
Minimum Entry Age
Maximum Entry Age
Maximum Term Insurance Coverage
The Right Age to Buy Term Insurance And Its Reason
In general, there is no such age that can be called the right time to buy a term insurance plan. Instead, you must first consider the objective of buying this policy.
Now let’s discover why people from particular age groups should buy this policy:
Reasons for Buying Term Insurance Plan in the 20sWhile individuals are in their 20s, they may have student loans or familial responsibilities. They may also have to support the livelihoods of their dependents. If they are covered under a term insurance plan, they can ensure that their families do not face financial difficulties during any unforeseen events.
Reasons for Buying Term Insurance Plan in the 30s
People in their 30s have more responsibilities towards their families. They need to consider the well-being of their spouses, children, parents or other dependents. Children’s education is also one of the major concerns at this age.
By staying covered under a term insurance plan, they can get an assurance that their families can sustain their lives and manage impending expenses. Moreover, if they have any personal, home or car loan, their families can easily close it with the sum assured amount.
Reasons for Buying Term Insurance Plan in the 50s
People in their 50s are very close to their retirement age. However, they may have concerns about larger upcoming expenses like higher education or the wedding of children. Again, the risk of life-threatening diseases also looms large.
By staying under the protection of a term insurance plan, they can ensure that even after their sudden demise, their families do not encounter financial hardships to meet those expenses.
Why the Age Impacts the Premium of Term Life Insurance?
Here are some of the reasons for making age one of the major factors to determine the premium amount of a term insurance plan:
- Health Issues: Younger individuals are less prone to chronic or life-threatening illnesses. Their blood pressure, sugar, etc., are usually at healthy levels. As a result, insurance companies charge lower premiums for term insurance to people in the lower age group.
- Risk of Death: Insurance companies charge higher premiums to customers of advanced age. This is mainly because the chances of dying gradually increase with age.
Because of these two reasons, insurance companies factor in the age limit in term insurance as one of the criteria behind determining the premium of a term insurance plan.
How Can One Benefit From Buying Term Insurance Plan Early?
Here are some of the reasons why buying a term insurance plan at an early age would benefit you financially:
- Lower Premium Amount: One of the major reasons why you should purchase this policy at an early age is that it saves your expenditure towards the premium amount. Insurance companies charge higher premiums if your entry age for this plan is more.
- Financial Security from Early Age: Life is uncertain, so you may want to get coverage from an early stage of your life. This will help you secure the future of your dependent family members from the moment you get yourself covered.
Insurers set a definite maximum and minimum eligible age limit in term insurance. You can buy this policy even in your 50s, but to secure your family’s financial stability after your unfortunate demise, you should ideally get yourself covered as early as possible. If you buy this policy at an early stage of your life, you can also save more on your total outgoing premiums.
FAQs About Age Limit for Term Life Insurance
Yes, you can reduce your tax liabilities under Section 80C of the Indian Income Tax of India. It allows policyholders to deduct their paid premium amount from their taxable annual income for up to ₹1.5 Lakh.
Following are different factors that influence the premium amount of a term insurance plan:
- Health Condition
- Chosen Sum Assured
- Smoking Habits
- Premium Payment Tenure
- Lifestyle Habits
You need to provide the following documents while purchasing a term insurance plan:
- Address Proof: Aadhaar card, driving licence, etc.
- Proof of Age: Voter ID card, PAN card, etc.
- Income Proof: Payslips, bank statements, etc.
Other Important Articles about Term Insurance Features
Other Important Articles Related to Term Insurance
- This is an informative article provided on 'as is' basis for awareness purpose only and not intended as a professional advice. The content of the article is derived from various open sources across the Internet. Digit Life Insurance is not promoting or recommending any aspect in the article or its correctness. Please verify the information and your requirement before taking any decisions.
- All the figures reflected in the article are for illustrative purposes. The premium for Coverage that one buys depends on various factors including customer requirements, eligibility, age, demography, insurance provider, product, coverage amount, term and other factors
- Tax Benefits, if applicable depend on the Tax Regime opted by the individual and the applicable tax provision. Please consult your Tax consultant before making any decision.