Life insurance is an efficient product that ensures your loved ones’ happiness and well-being if anything unfortunate happens to you. No one can deny that a family’s financial security is a priority for many, especially the breadwinners. But you must know the age limits of buying life insurance plans to make an informed decision. Also, learn about the advantages of a term insurance policy at different stages of your life.
Term Insurance Plan Age Limit
Term life insurance comes with age-related restrictions. So, the minimum age for term insurance policies is 18 years old in India. You cannot purchase a term plan before that. On the other hand, the term insurance age limit is 65 years old. But the maximum age for term insurance may vary according to insurance companies. Some insurance providers allow you to buy a term plan up to the age of 60 or 65. While some allow purchasing a plan till the age of 70.
How Long-Term Insurance Offers Coverage?
As the name implies, a term insurance policy provides coverage for a specific term. The death benefit is given to the beneficiary when the insured dies during the policy tenure. Usually, term insurance plans offer coverage for up to 99 years, depending on the policy term. But this coverage period may vary according to insurance providers.
Term Plan At Different Life Stages
Every stage of life is different in terms of health, income, responsibilities, etc. As a term plan offers coverage for a limited time, it becomes essential to know the right time to buy it. For this, you must analyse your requirements according to your age. Find out how a term plan can benefit you at different stages of your life.
- Term plan in your twenties
The 20s are a stage of life where you finish your studies and start earning. But many people at this stage are burdened with education loans that they plan to repay during their job. So, if you are the sole breadwinner for your parents, the liability of loan repayment might burden them in case anything unfortunate happens to you.
Thus, buying a term plan at this age helps your family pay off your debts without any financial stress. Also, a term plan has an additional advantage at a young age. As the risk of death or illness is low in the 20s, you can get adequate coverage at low premiums without alteration in policy terms and conditions.
- Term plan in your thirties
In your 30s, you may wish to marry, have children, buy a new home, car, etc. At this stage, you also have several responsibilities to fulfil. Your parents might retire and become financially dependent on you.
Along with daily expenses, you might have to repay your home loan, car loan, etc. So, buying a term insurance plan in your 30s helps your family meet financial exigencies effectively in your absence. It helps ensure your family doesn’t need to sell off their assets to pay off your debt.
- Term plan in your forties
By your 40s, you start living a stable life. But this is also the age when you think more of your children’s future, like their education, marriage, etc. You wish to fulfil your family’s multiple dreams and goals to make them happy. So, buying term life insurance in your 40s is a wise decision to ensure your family doesn’t give up on their dreams after you.
- Term plan in your fifties
By your 50s, most of your responsibilities are fulfilled. But you may have some outstanding loans or other financial obligations. Some of you may have differently abled children solely dependent on you. Nearing retirement age, chances of illness or death also increase in this stage of life. So, buying a term policy in your 50s ensures your dependent spouse and children live without worrying about finances after you.
Does Everyone Need A Term Plan?
Term insurance is not a must-buy for everyone. But it is recommended to buy one if you:
- Have financial dependents: You should consider buying a term plan if anyone in your family depends on you for their expenses.
- Have loans or other financial obligations: You might need a term insurance plan if you have hefty loans to repay, like a home loan, business loan, etc. Also, if you have responsibilities like weddings or higher education for your child, a term plan ensures their fulfilment without any burden.
- Your debts outweigh your assets: You should buy a term plan if your liabilities are more than your assets to ensure your family’s financial security after you.
Now, after knowing about the term insurance plan age limit, you must analyse your age requirements and buy a suitable term plan for yourself if you need one. But a term plan must be bought as early as possible if you wish to benefit from premiums. As the family’s earning member, you can take care of your loved ones’ needs until you are alive. But a term life policy takes care of their needs even after you.
Tata AIA life insurance company understands your different age needs and thus tailors term plans that are suitable for you. So, buy a term insurance plan today and preserve the smile of your loved ones after you.