Term Insurance Age Limit

Have you ever thought about why experts suggest buying term insurance at a young age? There are quite a few reasons behind it; however, let’s first understand a bit of term life insurance. Financial stability is one of the critical factors in determining a family’s happiness. If you are an earning member of the family, you can assure them with a regular income till you are alive. But what will happen after you? In such a situation, term life insurance can be a valuable tool to stabilize your family financially.

Term insurance has certain aspects that can help you gain maximum benefits if you keep those in mind. Some of them can be minimum and maximum entry age. And there are pros and cons of buying term insurance at different ages.

What is the term life insurance age limit? 

A term life insurance can be purchased between 18 to 65 years of age, and the coverage can go up to 99 years of age. But there will be a lot of inclusions and exclusions in the term plans for each age group. So, let’s understand how to plan and purchase a term plan at various life stages. Because analyzing term plans as per the age is critical to understand the prerequisites changes due to age, which requires a corresponding adjustment in the policy inclusion.

If bought during the 20s 

In the 20s, many people graduate and start their careers. Initially, the salaries are low, and in most cases, people take education loans. If something unfortunate happens to them, then the burden of the education loan will come on to their parents. Therefore, a term plan can help take care of the loan from the death benefit they receive. One of the benefits of term life insurance is that it is less expensive when you get it at a young age as the health risks and liabilities are low. Also, when young, you are eligible to get a substantial coverage amount at a relatively low premium amount, which you can’t get at a later stage of life.

If bought during the 30s

In the 30s, most people are settled in their career, getting married, purchase a car or home or even have children. Liabilities increase at this stage of life. Children’s education, home loan, car loan are long-term liabilities. Also, elderly parents become dependent as well. In addition, taking care of a spouse’s financial future security is also there. Even though your pay will rise considerably during the 30s, savings alone may not be sufficient to cover the liabilities in case of your absence. Therefore, purchasing term life insurance in the 30s can ensure financial security for all these factors. 

If bought during the 40s 

During the 40s, the responsibilities shift. The overall responsibilities might reduce when one of the loans like a car loan is paid off amongst others, but other responsibilities take the front seat. A term insurance plan becomes necessary to fulfill your children’s dream, such as sending them abroad for higher education in your absence. Other responsibilities in the 40s include taking care of parents and retirement planning. A term plan coverage amount can manage the expenses of your parents in case of your sudden demise. Although buying a term policy in the 40s might cost you more than 20s but less if you purchase in the 50s, the premiums will significantly rise.

If bought during the 50s 

In case you haven’t purchased a term policy till your 50s, it is time you get one immediately. At this age, you must be near your retirement with a high risk of falling ill, and you might have health issues as well. So, opting for term insurance can help manage these expenses as they come with various riders that offer add-on coverage, such as for critical illnesses. Riders are optional, but they provide additional funds for sudden emergencies. Securing your spouse’s future is also your responsibility which again makes term insurance a critical choice. You can also plan for a joint term plan to cover your spouse under the same policy.

If bought during the 60s 

Even though some term insurance plans come with the maximum maturity age of 65, it is not advised to buy a term plan so late. This is because the popular perception includes that you don’t require a term plan after retirement, but nowadays, people still work after retirement, and increased life expectancy has made previous perceptions invalid. Moreover, many people support their kids even after retirement or have unpaid liabilities; hence, a term plan guarantees that all these monetary requirements and liabilities are dealt with in their absence.

Overall, purchasing term life insurance is vital to prompt a calm and monetarily secured life. Be that as it may, you should contemplate a few factors before concluding a term plan. The life cover should be connected to your annual income and financial goals to get the best benefit out of the chosen term plan.

Coming to the age factor, although individuals can purchase a term plan at any phase of life; however, buying in the 60s might not be the right decision. Because you will have to pay a very high premium for the life cover, which might cost you significantly less in your 20s. The bottom line is that a term insurance policy is necessary for every life stage, but the early you buy, the better position you ought to be in. So, visit iiflinsurance.com today and choose the best term plan to secure your family in your absence.