It’s Never Too Late To Buy A Term Insurance Plan!

Term Insurance is a simple life insurance product which helps protect the financial future of the family, in case of the unfortunate death of the policyholder. This plan can be bought anytime, however, it has a different meaning when bought at different age due to the changing lifestyle and financial goals.

If you are wondering about when is the Right age to buy a term insurance policy’, read on to learn what is the best suited to your specific needs.

In your 20s?

This is the most crucial time of your life when you have just started your professional career. You have less responsibilities and things to worry about. However, you may have a few heavy debts to pay off like education loan.  God forbid, if something happens to you at this age, a term insurance policy will help pay off your debts or else the entire burden of re-paying the huge education loan fall on your parents in your absence. One big advantage of buying a term insurance plan at this age is that you will pay the cheapest term insurance plan premium since the risk (mortality rate) to the insured’s life is low. In other words, the younger you are, the relatively cheaper term plan you get. One can get a Rs. 50 lakh life cover for a premium as low as Rs. 3776/year (20-year old, non-smoker male, 40-year Term).

In your 30s?

30’s is the time when most get married and have children. Your responsibility increases manifold. Not only do you start worrying about securing your children’s future but also other financial obligations like home loans, car loans, and other long-term commitments. For some of you, your parents may now be dependent on you, which further adds to your financial expenses. Even though your income has increased considerably from when you started and is stable now, your standard of living has also improved, and hence your financial expenses have also spiraled.

This is time when you should think about buying a term plan so that your family’s financial future is protected even when you are not around. In fact, it would be best to opt for a term plan with a monthly income option. Here, the one-time lumpsum payout can be used to pay of debts, if any and the monthly payouts will take care of your family’s day to day expenses.

In your 40s?

During your 40s, usually your long-term debts like car loan, home loan, etc. are more or less covered. However, responsibilities of children’s higher education, your retirement planning, old parents’ ailing health, etc. need a good financial corpus. Thus, you will require greater financial protection to secure your family’s future. It is advisable to buy a term policy with a large cover.

While a 40-year-old non-smoker male can buy a basic term plan with a cover of Rs. 50 lakhs for an annual premium of Rs. 7198/year (40-year old, non-smoker male, 20-year term), at the age of 50, the same cover will cost him Rs. 12,626/year (50-year old, non-smoker male, 10-year term). So, do not delay further, get quotes now for your term policy. 

Crossed your 50s?

If you are more than 50 years old, a term plan premium will be more than double as compared to what a 40-year old pays. This is irrespective of whether you are smoker or a non-smoker. However, it is advisable to still go ahead and buy a term plan if you are the sole earning member of your family and have huge financial debts to pay off.

Max Life Insurance offers a comprehensive term plan with multiple benefits. Go through the tables below for better understanding of the Max Life insurance rates by age:

  • Date of birth taken as 1st August; with 2017 as the base year
  • Insurance Term Period - 10 years
  • Sum Assured - 50 Lakhs
  • Term Policy - Basic Life Cover

TABLE 1

Age as on last birthday

(in Years)

Annual Term Policy Insurance Premium (Non-Smoker, Female) (Rs.)

Annual Term Policy Insurance Premium (Smoker, Female)

(Rs.)

Annual Term Policy Insurance Premium (Non-Smoker, Male)

(Rs.)

Annual Term Policy Insurance Premium (Smoker, Male)

(Rs.)

20

3540

4307

3599

4425

30

3717

4602

4012

5074

40

4661

6136

6077

8319

50

8673

12508

12626

18703

60

17818

26963

25252

38763


Key points to note are –

  1. Premiums increase with age, for both the genders. Thus, buy a term plan as early as possible to enjoy cheaper premiums.
  2. The smokers have to pay higher premiums across all the ages. It is not a bad idea to quit smoking especially when it get you double benefits of cheaper premiums and healthy longer life!

So, stop wondering about the right time to buy a term plan and explore Max Life’s product suite which offers one of the best term insurance plans in India, that can be bought both online and offline. Max Life offers three payout options which can be chosen based on your needs.

  1. A lumpsum payout
  2. Lump sum amount and monthly incomes and
  3. Lump sum amount with increasing monthly incomes

Furthermore, riders like premium waiver and accident benefit rider provide for a comprehensive coverage of your needs, on payment of additional premium. To get your quote for a term plan in just 2 minutes, click here now!

 

The information in this article has been collected through secondary research and Max Life Insurance Company Limited is not responsible for the accuracy of the content.

Note: (Premiums quoted are inclusive of GST and all applicable taxes, cess and levies as imposed by the Government)- mention it where  you are mentioning the premium figures.


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