Life insurance policies are considered an essential part of a family’s financial plan in recent times. It is primarily because of uncertain life events such as the pandemic and the global economic slowdown. In addition, the financial crisis has impacted a large section of people.

What is a Term Plan?

A term policy is a pure life insurance plan that provides a sum assured to the nominee in case you meet with an unexpected death during the term period. It is a life cover essential to protect your family’s financial needs in your absence. 

What are the features of a Term Plan?

A term insurance plan is a traditional life insurance policy that provides the following features:
 

1. More sum is assured for an affordable premium as opposed to other life insurance policies.
2. Add – on rider^# options to enhance the benefits such as the critical illness benefit rider^#, waiver of premium rider^#, return of premium rider^#, etc.,

A term insurance plan will serve your needs only when it is purchased at the right time.

How old must you be to buy term insurance plans in India?

There are eligibility criteria for purchasing a term policy in India. Make sure you read the policy documents to ensure the age and related benefits.
 

• The minimum age should be at least 18 years of age for the policyholder. 
• The maximum age varies with policies. However, on average, it is 65 years of age.

Though the term insurance age limit is defined, it is important to know the exact age to buy a term insurance plan to secure your family in the best possible manner.

What is the ideal age for purchasing a Term Plan?

People presume that they can do the financial planning with the purchase of the necessary financial instruments after settling in life. However, it is a wrong notion. It would be best to consider financial planning immediately after you start earning, and a term policy plan should be a part of it. If you are the only breadwinner in the family, it is more of a responsibility than an option.

The ideal age for term insurance will be in your 20s. It may sound superficial. Nevertheless, it is a fact. There are several benefits associated with purchasing term insurance early at age. Let us understand a few of them.

What are the benefits of buying a Term Plan early at age?

We have seen what the benefits of purchasing a term policy are. Here is how it turns out to be more beneficial when you buy it early in life.
 

1. More sum Assured – A term policy generally provides more sum assured . However, when you purchase it early in your 20s, the value will become even more due to the long-term period of the policy. Purchasing it early and, more importantly, staying invested for a long time will help you ensure a huge insured amount.
   
   
2. Affordable Premium – Term plan premium is considered the most affordable. The sum assured and the premium is based on a calculated risk of your unexpected and probable death based on medical history. At a young age, the possibility of having a health disorder or a pre-existing ailment is close to nil. And hence, the probability of death risk is also low, ensuring an even reasonable premium price.
   
   
3. Fewer liabilities – When you are in your 20s, the extent of liabilities will be extremely low. Therefore, you will be able to contribute more towards the term policy. As you proceed in life, the responsibilities with short term and long-term financial commitments concerning the family such as purchasing a car, child’s education, etc., Also, when you begin saving in term insurance early as you start earning, you get into the right discipline of financial practice. It is very important because many people engage in spending practice and a high standard of living which becomes difficult to change later in life.
   
   
4. Riders^# – There are add–on rider^# benefits that enhance the term insurance policy. They provide better coverage in the long term. For example, the critical illness rider^# option accumulates a huge sum of money that can help you treat any disease by managing the hospitalization and other treatment charges that may occur later in your life. Also, with the return of the premium rider^#, you can get a refund of the total premium amounts paid if you outlive the policy period. It will certainly be a huge amount when you start the policy early in life.

Given the benefits, as a primary responsibility, you must spend time making a financial plan. Investing in such financial instruments should be based on your steady flow of income, family financial commitments, and your long-term financial goals.

Conclusion
 

A term insurance plan is the best way to organize your income for securing your family’s financial requirements. In case of your untimely death, it will be the only source of financial recovery. You can purchase life insurance when you are at least 18 years of age and a maximum of about 65 years of age. However, the ideal age to purchase a term policy is when you are in your 20s. Then, you can get a huge sum assured at an affordable premium. Don’t hesitate or have a second thought. Term policy is a necessity, especially if you are the only sole earning member in the family!

L&C/Advt/2023/Jan/0292