Nifty 17277.95 (0.75%)
Sensex 57858.15 (0.64%)
Nifty Bank 37706.75 (2.05%)
Nifty IT 34707.45 (-0.33%)
Nifty Financial Services 17789.8 (0.89%)
Adani Ports 711.10 (1.23%)
Asian Paints 3147.10 (-0.26%)
Axis Bank 752.20 (6.76%)
B P C L 382.55 (2.53%)
Bajaj Auto 3469.10 (2.57%)
Bajaj Finance 6963.75 (0.46%)
Bajaj Finserv 15528.95 (-1.13%)
Bharti Airtel 711.85 (3.18%)
Britannia Inds. 3539.30 (0.44%)
Cipla 905.65 (1.52%)
Coal India 161.15 (3.10%)
Divis Lab. 4049.20 (-0.18%)
Dr Reddys Labs 4402.85 (0.88%)
Eicher Motors 2692.00 (1.34%)
Grasim Inds 1721.30 (1.81%)
H D F C 2530.60 (-0.36%)
HCL Technologies 1123.70 (-0.11%)
HDFC Bank 1488.05 (0.09%)
HDFC Life Insur. 630.80 (0.51%)
Hero Motocorp 2782.05 (2.80%)
Hind. Unilever 2327.25 (1.87%)
Hindalco Inds. 485.75 (1.54%)
I O C L 121.45 (0.91%)
ICICI Bank 801.65 (0.40%)
IndusInd Bank 884.25 (3.88%)
Infosys 1722.15 (-0.84%)
ITC 214.30 (1.18%)
JSW Steel 631.15 (1.50%)
Kotak Mah. Bank 1854.65 (1.30%)
Larsen & Toubro 1925.30 (1.34%)
M & M 854.50 (-0.02%)
Maruti Suzuki 8602.60 (6.83%)
Nestle India 18790.75 (0.39%)
NTPC 135.30 (2.04%)
O N G C 165.15 (-0.33%)
Power Grid Corpn 218.85 (2.27%)
Reliance Industr 2373.25 (-0.20%)
SBI Life Insuran 1228.00 (0.24%)
Shree Cement 24497.50 (0.73%)
St Bk of India 514.65 (4.15%)
Sun Pharma.Inds. 808.05 (0.90%)
Tata Consumer 707.75 (2.36%)
Tata Motors 490.55 (2.53%)
Tata Steel 1109.10 (0.90%)
TCS 3769.90 (-0.04%)
Tech Mahindra 1500.60 (-0.83%)
Titan Company 2376.50 (-1.10%)
UltraTech Cem. 7098.35 (-0.81%)
UPL 791.15 (3.74%)
Wipro 562.70 (-1.75%)

What is the right age to buy a term life insurance cover?

What is the right age to buy a term life insurance cover?
by Nutan Gupta 01/10/2017

Death comes knocking at the door without any prior notice. The death of the only breadwinner of the family brings the family into severe financial crisis. This is the time when you realise the importance of a term insurance policy the most. A term insurance plan secures the life of your loved ones and helps them to meet their day-to-day expenses. It is always better to buy a term insurance plan early in life as an individual gets immense benefits for starting early. Also, the premium charges are also low when you are young.

Let’s take a look at the different ages and factors that one should consider while buying a term insurance.

20’s

During the 20s, an individual just steps into his professional life and is relatively debt free. He has lesser family responsibilities and buying a term cover at this age can help him pay off his education loans if any. Moreover, term insurance premiums are less expensive when an individual is young.

30’s

An individual, in his 30s, tend to have family and kids. While his income is higher at this age, the responsibilities are much more. He may have financial liabilities like home loan, car loan etc. The premium will tend to be slightly higher, given the family responsibilities.

40’s

During this age, an individual’s long term financial liabilities like a home or car loan is paid-off. However, he may have higher responsibilities like his child’s higher education or his own retirement planning. It is better to opt for a cover which provides a greater coverage and financial protection. The cover should be able to take care of your family expenses after your death.

50’s

When an individual reaches this age, his children already start earning and most of the debts are paid-off. Family members are not financially dependent on your earnings. During this age, what an individual is most concerned about is his retirement. At this age, the best option for an individual is to buy an endowment plan which will help him save and give him a lump sum amount on maturity.

Term Insurance Premium amounts for a cover of Rs. 50 lakh

Age Premium Amount
22 Rs. 4,270
32 Rs. 5,455
42 Rs. 9,606
52 Rs. 17,534

The above table shows the difference in premiums as per the age of an individual. As the age increases, premium increases.

Conclusion

Age plays a major role in deciding the amount of your term insurance. The biggest mistake an individual makes is to not opt for a substantial cover for the family. One should make sure that the term cover takes care of all the basic necessities of the family in case of the sudden demise of the policyholder.

Get a Term Insurance Cover Now!

About the Author

Open Demat Account

Enter Mobile Number
Enter correct otp
Start investing in just 5 mins
Free Demat account, No conditions apply
  • 0%* Brokerage
  • Flat ₹20 per order
SENSEX
57,858.15
366.64 (0.64%)
Nifty 50
17,277.95
128.85 (0.75%)
Nifty Bank
37,706.75
759.20 (2.05%)
Next Article

Start Investing Now!

Open Free Demat Account in 5 mins

Enter Valid Mobile Number

Stocks Directory

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z All 0-9