Right Age to Buy Term Insurance Plans

As per the view of the experts, when we talk about tenure of the policy, each age is considered good to purchase a term insurance plan. Subject to the condition that your monthly earnings are sufficient to make payment for the premiums. Generally, the insurance providers offer cover to a person till 75 years of age, and in certain cases, it can go up to 99 years. It simply means that the policy duration differs from 5 years to 40-45 years, it is based on your age and requirements as to the total number of years for which you want to purchase the cover.

Now let us discuss a few factors depending on age, to know what is going to be the correct age to purchase a term insurance plan:

Is Buying a Term Plan in your 20s the Right Time?

Being in your 20s is the most significant phase of one’s life. It is extremely important to be financially sound in order to extend support to your family in case of your untimely death. It offers a death benefit to the family members of the policyholder. Buying a term plan in your 20s comes with the benefit that the amount of premium payable would be cheaper. This is because the risk involved with dying in your 20s is lesser in comparison to the risk of death in your 50s or above.

Is Buying a Term Plan in your 30s the Right Time?

The age of 30s comes with various responsibilities on your shoulders. Many people decide to get married by this time or decide to start a family. In case, you haven’t purchased a term insurance plan by this age, then experts are of the view that you should consider buying it now as although you are having various responsibilities, you also have a monthly source of income. This money can be used by you to protect your dependent's future against the unforeseen life eventualities. In case, any unfortunate things happens to you, then the insurance company would pay a death benefit lump sum and the monthly pay-outs can assist your family in paying their debts and meeting their expenses in your absence.

Is Buying a Term Plan in your 40s the Right Time?

You may have paid all your liabilities by this age such as home loans, car loans, etc. However, taking into consideration the sensitivity of your life at this age, you need a robust financial backup for your old age. Moreover, in case you are the sole breadwinner of your family, then you must have dependent parents, children and spouse, who would need a solid financial framework in your absence.
Purchasing a term plan with huge coverage can turn out to be a good financial decision as it can work in the favour of both you as well as your family to tackle the uncertainties of life.

Conclusion

Individuals have varied life goals and needs. When any individual would require a term insurance plan now, on the other hand, there would be an individual who would need it sometime later in life. Thus, you must consider only your current requirements and future goals. While deciding the policy coverage, premium payable and term, you need to act wisely before making any decision.

Must Read: Know the Difference Between Term Life Insurance and ULIPs

I Am Unmarried, Should I Buy A Term Insurance?

Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.