One of the greatest life insurance policies to protect your family’s financial future from unforeseen circumstances is a term plan. In the event of your passing away, it provides a lump sum to your family. The money can then be used by your family to pay for ongoing and future needs such as childcare costs, EMI payments, medical bills, etc. You can also avail of term insurance tax benefits with term insurance plans.
While you may be aware that term insurance age limits are essential for everyone and a necessity in your financial portfolio, you could be unsure of the ideal age to purchase one. Is there a maximum age for buying term insurance from insurance companies? In this article, we’ll provide answers to both of these queries.
Financial experts advise purchasing aterm insurancepolicy early when it comes to the ideal age to do so. Some authorities assert that you must buy a term plan the day you receive your first paycheck. When you are young and healthy, the policy can be purchased for a low cost with great coverage.
Let’s examine the term insurance age restriction as well as the types of term plans required for each age group.
Age Limit for Term Insurance
Term plans are typically offered by insurance firms to customers between the ages of 18 and 65. Any person between the ages of 18 and 65 may purchase term insurance. Even if you’re 65 years old, you can purchase term insurance that covers you until you’re 99 years old because the term of the policy can run up to 99 years.
Term plans for various age groups
Although it is generally a good idea to purchase term insurance as soon as you can that is not always realistically attainable. Some people purchase one in their 30s, while others postpone doing so until they are in their 40s or 50s. Below, we’ve provided a list of scenarios broken down by age so you may get a general idea of the kind of term plan you require at your present stage of life.
For the age group 20 to 30,
If you’re in your 20s, you’re probably just beginning your job, single, with little or no severe debt, and with few or no children. You can purchase term insurance in this situation, but you might not require a sizeable life insurance policy.
A 50 lakh cover with a 30 or 40-year duration is an option. The rates, which range from Rs. 4000-6000 annually, are extremely reasonable. You must keep in mind that your future financial obligations and dependents will grow, and your life insurance should account for that. You can use a term insurance calculator to determine the right term plan for you.
For persons aged 30 to 40,
If you’re in your 30s, it’s likely that you’re married and have a few obligations, such as debt and dependents. In this situation, you must determine how much support your dependents would require if you were not there. The range of 75 lakhs to 1 crore is often obtained by accounting for future costs and the type of living. So when purchasing term insurance, get a similar life cover.
For the age group 40 to 50
You’ll have a lot more obligations and financial liabilities when you’re in your 40s. Your kids would become bigger and need more money for things like higher schooling and weddings, etc. Therefore, you would require at least Rs. 1 crore as a life cover while purchasing term insurance. If you acquire term insurance at this time in your life, the rates can be a little higher. You can utilise a term insurance calculator to calculate the average premium that you will need to pay.
Over the age of 50,
You can still purchase term insurance and provide financial security for your loved ones even after you turn 50. But keep in mind that insurance rates at this age could be higher. Additionally, you can add more riders to your policy, including riders for severe illnesses, to help you out even more when you’re in need of money.
It’s never too late, regardless of what age group you’re in right now. Purchase term insurance to protect your loved ones’ finances.
Why should you purchase term insurance early in life?
- Cost-effective premiums
- The duration is longer.
- You can get more life insurance for less money.
- Purchasing online is simple.
- Less expensive premiums make room for future investments.
- Term insurance tax benefits
The tax benefits mentioned in the article may not apply if you opt for the new tax regime since many tax exemptions and deductions have been scrapped within the new regime.
Term insurance has benefits at every stage of life. Thus, it is regarded as a valuable asset regardless of your age. Although it is ideal to buy term insurance when you are young, you can still do so as long as you are within the age restrictions.
Insurance is the subject matter of solicitation. For more details on benefits, exclusions, limitations, terms, and conditions, please read the sales brochure/policy wording carefully before concluding a sale.