A term insurance policy provides you with a life cover for a fixed tenure. It ensures that your family’s financial future is secure in case of your demise. Also, the biggest perk of choosing a term insurance is that you can get an enormous sum insured for lower premiums. When you choose to get term insurance, know that there are several factors affecting the term insurance premium. Amongst the checklist of the insurance company, age is a major factor considered when you get a term plan.
Why is age a major factor for the term plan?
Age is a major factor when you purchase a term plan. When people age, their health deteriorates. The younger a person is, the lower is the chance of that person losing their lives naturally. Most studies also show that Indians buy a term plan usually between the age of 35 to 40 years. There are various reasons people shift towards buying insurance during that age criteria particularly. Sometimes people buy a term plan, because the existing life insurance that they have may not suffice. They might have added financial responsibilities towards their dependents. Also, many people buy term insurance to ensure that their debts do not burden their family in their absence. To ensure that their loved one’s face no financial stress, many people prefer to get term insurance.
It is never too late to buy a term plan. However, there are some perks and some drawbacks that people may face depending upon which age group they take a term policy in.
Read on to know about what it’s like to buy a term policy in different age groups-
Buying a term policy in your 20s
In their 20s, most people do not have any debts and dependents. Since there is no financial stress, it is the perfect time to purchase a term policy. The longer the term of your policy, the more you get the benefits out of it. Also, you can avail for a huge sum assured at low premiums at this young age. Since age is one of the major factors affecting term insurance premium, the lower the age, the cheaper the premium.
Buying a term policy in your 30s
In your 30s also, you can get a good term plan where you get a good sum assured for low premiums. At this age, you can get discounted premiums if you have a healthy lifestyle and no critical illness. Since this is quite a common age for people to buy a term plan, there are several competitors that offer perks and advantages. Always compare the different offers you have, then choose one.
Buying a term policy in your 40s
In their 40s, people have increased financial responsibilities as they have a family to take care of. Buying a term plan in this sphere of life assures you that your family is in a secure place. In the 40s, the premiums are usually higher when compared to younger ages. However, if you are healthy and do not smoke, they may offer you a lower premium. It is always suggested to use a term plan premium calculator before buying a policy. This will give you the estimate of your premium and your sum cover.
Buying a term policy in your 50s
Usually, at this age, the premiums of most life insurances are substantially high. Even the term insurance premium at this age is high, but still lower when compared to other types of insurance. It is never too late to purchase a term plan and monetarily secure the lives of the family. Also, at this age, it is advised to choose the rider options, like your critical illness riders. These riders can help you with the critical illnesses that most people get diagnosed with as they age.
Buying a term policy in your 60s
Most people who buy a term plan at this age are the ones who are the breadwinner of a family or whose income still plays a significant role in running the household. Also, people who have substantial amounts of debt prefer to buy insurance after the age of 60. Experts highly recommended going for riders that cover the expenses of critical illnesses when you buy insurance at this age.
Apart from age, there are several other factors affecting term insurance premium. The insurance companies, based on those factors, decide your premiums.
