What is the right age to buy Term Insurance Plans in India?
When to buy term insurance? This is the most confusing question that almost everyone, regardless of their age, comes across. Unfortunately, many people end up making the wrong decision at the wrong age. This is mainly due to the lack of knowledge about how important the role of age is in buying a term plan. Generally, anyone from the age of 18 years of age can buy a term plan. But at the same time, is that really the right age to purchase.
Here we see how age plays a vital role in buying term insurance plans.
We know that there are many factors like premium payment, policy term, sum assured riders, and many more that have a significant role to play in a term plan. However, at the same time, the policyholder’s age also has a considerable impact on creating the type of plan you are going to choose, the type of riders you are eligible for, the sum assured, and the premium amount you are qualified for.
Considering these factors, here we see in brief which is the best age to buy term insurance:
Should I buy a Term plan right now?
If you are at the age of 18 years, and still doing your graduation, then you have time to think about it. But if you are above 20 years of age and just entered into your career with an initiating salary, you still have time to think about buying a term plan. But if you have strongly enforced your career and are about to get married and form a family, then never delay because it is the right time to initiate and act.
Can you buy term insurance after crossing a significant part of your age?
Here we see some disadvantages of buying term insurance online when you cross your young age and get older.
- Remember, the premium of your policy will increase as your age increases.
- Contingencies will always have some cost, which your family member need to bear it.
- Any type of health condition that is developed before starting your insurance plan may not be covered by the term plan.
- You will be limited from choosing specific riders and other options, which a policyholder at a young age may get.
- The sum assured will be less.
- The term tenure will be limited.
These points, therefore, emphasize the need to react at your young age itself and at the right time to buy your term plan.
What is the right age to buy a Term Plan in India?
This is the most commonly asked question people ask before buying a term plan. Anyone between the ages of 18 to 65 can opt for term insurance. Many people are not aware of the advantages of buying a term insurance plan at an early age. However, this is just a misconception, and it is always suggested by veteran financial advisors that one must buy term plans at an early age. Here we see in detail the right age to buy the term plan in India:
- The early 20s
- The late 20s and early 30s
- The late 30s and early 40s
- The late 40s and early 50s
- The late 50s and early 60s
The early 20s
To say, this will be the most suitable age for a person to buy a term plan. At this age, you would have completed your graduation and started setting a career of your interest. Moreover, you would have also started making a reasonable income, which will undoubtedly grow over the years. Therefore, your premium amount will be less at this age, and the sum assured can be expected to be higher with the longer-term tenure option.
The late 20s and early 30s
During this stage of your age, you would have got married and entered into a new family life. Here your responsibilities start building up, and your financial needs start gradually increasing. This, in another term, implies the importance of start creating financial security for your family. During this stage, you are still an eligible young person to become qualified for higher sum assured and lower premium with many riders and other beneficial options.
The late 30s and early 40s
This is the most critical age of a person. During this stage of life, your responsibilities and financial needs would have increased. In addition, your family would have grown more significant with children. The education, elderly parents’ medical expenses, your wife’s security, and many more factors may make you consider creating immediate security for your family protection. However, your chance to get the high sum assured at a low premium will reduce at this age.
The late 40s and early 50s
During this stage of your age, your chance to get a high sum assured with a low premium totally gets reduced, because you are assumed to be prone to many diseases and chances of other uncertainties are also higher. At the same time, your financial needs and commitments will also be higher compared to the other previous age stages. This implies the seriousness to react immediately to buy a term plan regardless of the premium amount for a high sum assured. However, your affordability may limit your eligibility to go for a better sum assured.
The late 50s and early 60s
The chances of getting lifestyle diseases are higher. At the same time, your financial security also starts alarming. During this stage of life, the chances of expecting a high sum assured becomes impossible at a low premium, whereas you are compelled to pay a high premium to opt high sum assured. Besides, the term tenure is also limited only up to 65 to 85 years of age, based on the insurance company and insurance product you are choosing. Although most insurance companies encourage individuals to buy a term plan at any age they want, you should also be ready to handle the burden of paying your high premium amount.
It is always recommendable to act right at your young age. To be specific, buying term insurance at your age between 20 and 30 is a perfect period to get better financial security. Moreover, this is also the right age you plan your family, career, and future. Therefore, you will gain a better idea about the sum assured you might need down the period of 50 years, until when you are 80 years of age at least, and plan your premium payment accordingly.