Life throws up many surprises and is full of unexpected events, ones that do not come with any warning. There are certain events that can cause a severe impact on your life causing permanent damage or even death. In such a situation, your family could be left without its bread winner and in a state of financial distress.
During such time, an insurance plan can meet the basic financial requirements of the family after unfortunate event of death of life insured/policy-holder.
The Indian market is flooded with numerous term insurance plans offered by several insurers . Considering the plethora of choices between plans, covers, terms and conditions, it becomes difficult for a layman to narrow down on a policy. One important question that leaves most prospects confused is “What is the right age to buy a term insurance plan?”
Anybody between the age of 18 to 60 years can buy a term insurance plan, yet factors such as income, number of dependents, future needs, and existing liabilities help in deciding the right term of policy.
Here are a few scenarios that will describe the term insurance needs according to different age groups:
- In Your 20s
In your 20s, a term insurance policy is easy to purchase and is relatively inexpensive. Statistically, the risk is relatively low in 20s, and it largely increases with age. Moreover, you would have just started your professional career and have lesser responsibilities. During this age, a term insurance plan can help you pay off your existing debt, such as student loans, and also support your family in your absence. You can get Rs. 1 Crore cover for as low as Rs. 495/month (21 year old, non-smoker male).
- In Your 30s
People at this age tend to have kids and family. Income tends to rise, but so do financial responsibilities and liabilities, such as home loans, car loans, and other long-term loans. Taking into consideration the family needs and responsibilities, you can to opt for a term plan with a monthly income option that will take care of your family’s day to day expenses along with the lumpsum payout. You can get Rs. 1 Crore cover for as low as Rs. 819/month (31 year old, non-smoker male).
- Late 40s
At this age, your long-term debts are covered; however, responsibilities such as higher education of children and retirement planning arise. Also, health risks seem to rise with age. Therefore, to cover familial responsibilities, retirement plans, liabilities, etc., you will require greater financial protection, thereby calling for a term policy with a greater cover. You can get Rs. 1 Crore cover for as low as Rs. 1548/month (41 year old, non-smoker male).
Thus, deliberating on the above mentioned factors and scenarios, one can very well infer that it is best to buy a term plan at an early age. You can start with a free quote to understand how much cover you can get basis your profile, and make an informed choice.