What is the Term Insurance Age Limit in India?

Term Insurance is one of the most important financial decisions you can make to protect your family’s future. However, many people are unsure about the age restrictions when buying and maintaining a term insurance policy.

You can buy term insurance as soon as you turn 18 years old. This coincides with the legal age of adulthood when you can enter into financial contracts independently. This article will help you understand everything you need to know about term insurance age limits

Minimum Age to Buy Term Insurance

The minimum age to purchase term insurance is typically 18 years. Individuals are legally considered adults and can enter into financial contracts at this age. Buying term insurance at a young age can be beneficial because:

• Premiums are lower due to a lower risk of health issues
• It allows individuals to secure their future financial responsibilities early on
• Some insurers might offer special policies starting at age 16 with parental consent
• Note: Young adults often overlook term insurance, but it's the best time to buy it.

Maximum Entry Age for Term Insurance

The maximum entry age for term insurance generally ranges between 60 - 65 years, depending on the insurer. However, some insurance providers may extend this limit to 70 years or even higher for specific plans. Here is what you need to know:

• Most standard term plans accept new policyholders up to age 65.
• Some specialised senior citizen plans might allow entry up to age 70.
• Premium costs increase significantly for older applicants.
• Medical examinations become more stringent as the entry age increases.
• Coverage options might be limited for those buying at higher ages.

Maximum Exit Age in Term Insurance

The exit age, or maturity age, is when your term insurance coverage ends. This is an important consideration when choosing a policy:

• Traditional term plans usually extend coverage up to age 70 to 75 years
• Some modern plans extend coverage up to age 80 or even 85
• Whole life term plans might offer coverage up to age 99 or 100
• The longer the coverage period, the higher the premium will be
• Exit age should align with your financial planning goals

In general, no such age can be called the right time to buy a term insurance plan. Instead, you must first consider the objective of buying this policy.

Now let’s discover why people from particular age groups should buy this policy:

Reasons for Buying Term Insurance Plan in the 20s

Reasons for Buying Term Insurance Plan in the 30s

People in their 30s have more responsibilities towards their families. They must consider the well-being of their spouses, children, parents or other dependents. Children’s education is also one of the major concerns at this age.

By staying covered under a term insurance plan for 30 - 40 years, they can get an assurance that their families can sustain their lives and manage impending expenses. Moreover, if they have any personal, home or car loan, their families can easily close it with the sum assured amount, so keep reviewing your plan based on the expenses and life changes.

Reasons for Buying Term Insurance Plan in the 40s

Getting term insurance in your 40s helps you manage important financial responsibilities like your children's education, their weddings, and any medical emergencies for your ageing parents.

Consider mid-term plans of 20 - 30 years and adjust coverage to include existing liabilities to ensure your family won't be burdened with debts if something happens to you. While insurance companies charge higher premiums at this age due to increased health risks, you can still find affordable options if you are in good health.

Reasons for Buying Term Insurance Plans in the 50s and 60s

Once you turn 50 or 60, the cost of term insurance premiums increases significantly. However, it's still a good idea to get the best term insurance plan available for someone your age. As long as you are within the maximum age limit for term insurance, you can get coverage.

Focus on shorter-term plans of 10 - 20 years and prioritise plans with health benefits or add-ons like critical illness coverage. The life cover you choose will help your family pay off any debts you might leave behind. It can also provide financial support if you face critical illnesses during the policy period.

Lower Premium Amount

Financial Security from Early Age