July 8, 2020 Last updated April 30th, 2021 1,057 Reads share

Not Sure About the Right Age to Buy Life Insurance? Read This

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For most of us, age is a crucial parameter that determines our overall health. While young people do not generally think they would fall ill severely, the older ones are mostly worried about different bodily diseases. With the increasing risk of health problems in India, no significant gap exists between the longevity status of the old and the young. It calls for buying a suitable term life insurance policy to deal with the financial after-effects of an untimely demise.

Buying the best term life insurance in India works as a financial cushion for your family when you would not be around. You must also know that a term life insurance policy is age-banded, meaning it becomes more expensive as you grow old. However, many young people tend to put off buying a term life insurance policy. Many millennials prefer to stay single and with a higher debt-to-income ratio. While paying the existing debt is critical, ignoring to buy term insurance can have a significant economic impact. Therefore, you are recommended to buy the best term life insurance in India at the earliest.

When Should You Buy a Term Life Insurance Policy?

Next to understanding how term insurance works, you might be wondering when to buy a term life insurance policy. Let us look more in-depth at the factors that play a role in defining your term insurance buying decision at different life stages.

In Your 20s

Most of the individuals start their careers during this age. They do not have substantial debt or financial responsibilities related to their family. If you are in your 20s, you are also less likely to suffer from various diseases, which makes you eligible to pay a lesser premium for the best term life insurance in India. With lower debt on your shoulders, you can easily manage to pay the premium of a term life insurance policy that comes with adequate cover and riders. Use an online term plan premium calculator to get an estimate on the premium to be paid.

In Your 30s

In your 30s, you are most likely married and have a family with kids. Life in this age has its fair share of financial responsibilities. Mainly if you are a salaried individual, you would want to fulfil some of your life goals, like buying a bigger home, car, or travel abroad at this age. Alongside, the health-related risks also increase, depending on your lifestyle habits.

If you look at the big picture of your finances, you will find yourself stuck in between a web of liabilities. To help your family live a comfortable life after you, buying a term life insurance policy while you are in your 30s should be your utmost priority.

In Your 40s

In this stage of life, you must be ready to plan for your child’s higher education. Investing in child education plans will only add to the existing long-term financial liabilities, like a home or car loan, which is not paid off yet. Your unfortunate demise may burden up the nominee of all the loans you have borrowed with several EMIs to be paid after you.

Whether you have chosen your parents or spouse as the nominee in various loans, you can help them stay prepared with a term life insurance policy. You can also plan for a constant source of income for your family by making sure you buy the right variant of the best term insurance in India, after due diligence and research, so you never run the risk of getting your life insurance claim denied.

In Your 50s

While reaching this life stage, the biggest concern for you is to live a peaceful retirement. With your children becoming the source of income in the family, your financial liabilities drop down significantly.

Wondering if this is the right age to buy a term life insurance policy? Look for insurers who offer term plans to people till the age of 70 or above. Make sure you compare several term plans before buying one as the premium at this age would be significantly higher. Another option for you is to purchase an endowment plan through which you can get a lump sum amount on maturity.

Foregoing term insurance purchases at a young age can turn out to be costlier in the long run. In other words, the overall cost of a term plan increases significantly at a higher term insurance age, say in your 40s and 50s. Compared to that, it is crucial to secure your family under a term plan as soon as possible. Not just that, if you are an employer, you can also help your employees get their life covered by availing of the benefits of group term life insurance plans or individual term plans at the right age.

life insurance concept -DepositPhotos

Theo Rogers

Theo Rogers

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