What is the Right Age to Buy a Term Insurance Plan?

Determining which age is the best to purchase term insurance is quite a daunting process, but it should be given utmost importance when improving the financial status of the loved one. If you are already confused about what age you should purchase a term insurance plan, read this article below to get the benefits of a term insurance plan and which age is most appropriate for buying it.

What is Term Insurance?

Term insurance provides financial protection for a specific period (term) at an affordable premium. For instance, a 30-year-old might pay a premium of ₹2,000 per month for a ₹1 crore term insurance plan with a 20-year term. If the policyholder passes away during the policy term, the sum assured (₹1 crore) is paid to the beneficiaries.

Why buy term insurance?

Term insurance provides strong protection against life’s risks, guaranteeing income to families in your absence. Here is why term insurance should be a component to consider in your financial plan.
First of all, life is often unpredictable. Term insurance is beneficial in providing the policy owner and the insured with the specified coverage throughout the term of the policy in return for a premium payment. This play aids in providing for various crucial needs as a backup since the payout from the policy is available.
Secondly, we know it is almost a norm in today’s society for both partners to be working in order to support their families. Thus, an accident entails a loss of material assets and, therefore, is financially burdensome. Term insurance pays out a lump sum that can adequately cover the current lifestyle of the policyholder.
Thirdly, term insurance assists in clearing expenses such as mortgages, car loans or student loans, ensuring your children’s education is uninterrupted. Term insurance also helps maintain your family’s standard of living, covering everyday expenses like housing, food, and utilities.
Term insurance isn’t about getting a return on your investment; it’s about providing a safety net and peace of mind. It’s a responsible and thoughtful way to ensure your loved ones are financially secure, even if you’re not there to guide them.

Which is the right age to invest in a term insurance plan?

There’s no one-size-fits-all answer to that very valid question. However, generally, the earlier you purchase a plan, the better. Here’s a breakdown of the advantages based on your age group.

Those in their 20s

Young adults often have lower financial obligations and healthier lifestyles, making them eligible for the most affordable premiums. For example, a 25-year-old might pay as low as ₹500 per month for a ₹50 lakh term plan.

Those in their 30s

Many individuals in their 30s start families and take on mortgages or other loans. Term insurance ensures their loved ones aren’t burdened with debt if something unexpected happens. The premium might be around ₹1,000 per month for a ₹1 crore term plan.

Those in their 40s

With growing families and career responsibilities, a financial safety net becomes even more important in your 40s. Premiums may increase slightly but are still generally affordable. You might pay ₹2,000 per month for a ₹2 crore term plan.

in their 50s

While premiums are higher in your 50s, term insurance can still provide valuable protection for your dependents during their crucial years. Expect to pay around ₹3,000 per month for a ₹1 crore term plan.

Conclusion

Don’t wait for the "right" age to buy term insurance. The right age is when you have someone who relies on you financially. Regardless of whether you are just beginning your career at the age of 20, having a young family at 30 or 40, or planning for retirement at 50, term insurance gives you the much-needed security to support your family in case of your premature death financially. Here’s the benefit of buying early: as one may observe, the lower the given age, the better the physical and health condition of the plan owner. The main goal is to lock in an affordable rate early so you can afford other essential things in life that have value to you.
However, the term insurance is not designed to be an investment plan rather it is only a protection plan. It will not bring riches but will ensure a good amount of money for the dependents at the time of adversity.

Here’s the first step towards securing your loved ones’ future. Research different term insurance plans, compare quotes, and choose a plan that fits your needs and budget. Don’t delay - get a quote today!

FAQ’s

Here are frequently asked questions on what is the right age to buy a term insurance plan.

How to choose the right age for term insurance?

There’s no single best age. Consider your financial obligations and dependents to decide when to buy.

Who is eligible for term insurance?

Generally, individuals between 18 and 65 years old are eligible for term insurance plans.

Who benefits from term insurance?

Your spouse, children, or any financially dependent family member benefits from the payout in case of your unfortunate demise.