If there is one thing that we all should take seriously is our life. The sedentary lifestyles, unhealthy food, poor air quality, make us only weak. Therefore, we should add healthy options to our diet, do exercise more regularly, and often visit places where we can breathe in some fresh air. However, life can still be unpredictable. This is why we must consider buying a term insurance plan. Before delving deeper, let us first understand what term insurance is.
What is term insurance?
Term insurance is life insurance that will provide your family a sum assured and you have to keep paying the premiums for a certain period. There are term plans that will enable you to pay a premium till the age of 60 years, while you can get coverage for up to 75 years of age. However, there is no maturity of the term insurance plan, and the beneficiaries will get the amount of money on your demise within the term insurance tenure. If you survive through the term plan tenure, you will not get anything. The amount that the beneficiaries will get depends on the kind of term plan you chose; however, the majority of the people choose a plan that offers up to INR 1 Crore of sum assured.
What is the term insurance age limit?
The age factor plays quite a significant role in purchasing a term insurance plan. However, you can buy a term insurance plan between the age of 18 years and 65 years. The coverage can be offered up to the age of 99 years. But before you finalize a plan, you must be aware of the fact that the benefits you can get depends upon your age when taking the policy. There can be quite many inclusions as well as exclusions depending upon the age group. Let us discuss them a bit here.
In the 20s
In the 20s, many people take an educational loan to pursue their higher education. And as soon as they complete their higher education, they get started with their career. In such a situation, if they pass away, the entire burden of the educational loan will pass onto their parents. This is the kind of circumstance where a term insurance policy can come as a great help. The death benefits that the parents will receive can be used for paying off the loan. One of the advantages of taking a term insurance plan in your 20s is that you are free of health risks and the responsibilities of life are lesser. Therefore, you can spare some money to pay the premium for a term insurance plan. Also, the term insurance you will buy at this age will be lesser in premium amount.
In the 30s
In the 30s, people are mostly settled with a family, car, and even a home. The liabilities are much more than the 20s. This is also the age when elderly parents come and stay with them and they have to be taken care of. This is one of the crucial stages in life when you need to take life very seriously and buy a term insurance plan so that even if you meet with an accident and pass away, your family will not have to go through a rough financial situation. The price of the term insurance plan depends on whether you are buying it in your early 30s or late 30s.
In the 40s
When you are in your 40s, you are a bit more settled than in your 30s. The majority part of your loan has been paid off by now. If you buy a term plan now, and if something unfortunate happens to you, the death benefit can be used for your children’s education. Whether your spouse is working or not, the death benefit can help them at least a bit to manage their finances. Since most people develop some kind of health issues during this age, term insurance can cost a bit more.
As you grow older, you may develop some health risks, and it becomes even more important to invest in a term insurance plan. However, the sooner, the better; and if you buy the term insurance in your 20s, you will have to put lesser money into it. If you want more information on term plans, you can visit the website of IIFL. You will come across several term plans offered by different companies in India, and make the final decision.