What is the Entry Age Limit for Term Insurance?

Like other insurance policies, term insurance also comes with the eligibility criteria for entry age. You can purchase this policy only if your age falls within the age limit for term insurance. Nevertheless, this policy helps you secure your family's financial stability in case of your unforeseen demise.

Therefore, you should ideally get yourself covered as quickly as possible. Moreover, from the perspective of cost-effectiveness, it is also advantageous to purchase this policy at an early age.

In general, there is no such age that 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 need to 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, 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.

Reasons for Buying Term Insurance Plan in the 50s

People in their 50s are very close to their retirement age. However, they may have concerns about larger upcoming expenses like higher education or the wedding of children. Again, the risk of life-threatening diseases also looms large.

By staying under the protection of a term insurance plan, they can ensure that even after their sudden demise, their families do not encounter financial hardships to meet those expenses.

Here are some of the reasons for making age one of the major factors to determine the premium amount of a term insurance plan:

• Health Issues: Younger individuals are less prone to chronic or life-threatening illnesses. Their blood pressure, sugar, etc., are usually at healthy levels. As a result, insurance companies charge lower premiums for term insurance to people in the lower age group. 
• Risk of Death: Insurance companies charge higher premiums to customers of advanced age. This is mainly because the chances of dying gradually increase with age.

Because of these two reasons, insurance companies factor in the age limit in term insurance as one of the criteria behind determining the premium of a term insurance plan.

Here are some of the reasons why buying a term insurance plan at an early age would benefit you financially:

• Lower Premium Amount: One of the major reasons why you should purchase this policy at an early age is that it saves your expenditure towards the premium amount. Insurance companies charge higher premiums if your entry age for this plan is more.
• Financial Security from Early Age: Life is uncertain, so you may want to get coverage from an early stage of your life. This will help you secure the future of your dependent family members from the moment you get yourself covered.

Insurers set a definite maximum and minimum eligible age limit in term insurance. You can buy this policy even in your 50s, but to secure your family’s financial stability after your unfortunate demise, you should ideally get yourself covered as early as possible. If you buy this policy at an early stage of your life, you can also save more on your total outgoing premiums.