Term insurance for different ages

How to Decide the Right Age to Buy a Term Plan?

There might be a possibility that you and your best friend share the same shoe size. But does that mean this idea is going to work for every field of your life?  Quite understandably, ‘one size fits all’ approach is definitely not going to work at least for term insurance plans.

For instance, a 30 year old individual wants to buy a term insurance plan and starts looking for a term plan. However, s/he finds that there are certain term plans in the market that s/he can buy at the age of 40 years, 50 years and so on.

Buying plans at a later stage might seem promising as it’s a common notion that people have better understanding and control of their finances in senior age. Hence, they are able to invest their money correctly. However, waiting so long for buying a term plan is never recommended under any circumstances.

So, the typical question that comes next is then what is the best age for buying a term insurance plan. An unpleasant event like unfortunate demise of a family’s sole earner can’t be controlled. Moreover, it not only puts an emotional and mental setback for her/his family but also a financial one.  Investing in a term plan will at least help the dependent family members to survive financially, if not emotionally.

Even though, there is no prescribed age limit for term insurance, it’s never too early to buy one. Here are few scenarios that will help you conclude which age group suits you the most while buying a term plan:

Term Insurance for Age group of 21 to 29:

20s is the age group wherein people normally complete their education and start their professional careers. They have lesser share of responsibilities and hence purchasing a term insurance in this age group is relatively cheaper.

Besides, the premium paid and the money received through a term plan also falls into the category of tax free investment. One can also opt for the additional benefits of terminal illness and life stage benefits.

Term Insurance for Age group of 30 to 39:

By the time an individual hits her/his 30s; he is generally married and might have kids, too. With a gradual increase in her/his income, there would be an increase in the financial responsibilities, too. Hence, comes forward the reason to handle the finances responsibly.

Individuals might have also accumulated certain assets by then including a new car, house, etc. With these assets, come liabilities such as loan related to them.

There is a reason that 30s might be considered as the best age for buying a term insurance because not only it let the policy buyer secure their family’s needs, but they also get to get relatively lower premiums in their 30s.

On a safer side, it’s good to disclose all the required details related to one’s health, her/his habits (smoking, etc.) and financial liabilities to avoid any repercussions of claim rejection later on.

It’s also recommended to keep one’s investment goals separated from her/his insurance needs at this stage. As per experts, it’s better to opt for a term insurance plan over whole life insurance products as this is the time one needs to ensure an emotional and financial protection for her/his loved ones.

Additionally, even the insurance providers find it safe to offer term plans to the candidates in their 30s as they are deemed more stable income wise.

Term Insurance for Age group of 40 to 49:

Even though in late 40s, people generally have had cleared their certain long-term loans and are financially more stable, still there are certain responsibilities such as their kid’s higher education, etc. still hits their head.

People start looking out for additional income source and their health also doesn’t support them due to increasing age. There is a higher possibility of falling prey to lifestyle-related diseases or critical illnesses.

So, even though people have this notion that the late 40s would let things drift away from them, it might be just the best age to buy term plan.

However, it’s important to make sure to have sufficient cover before taking the final call.

For instance, a 48-year-old non-smoker male who is earning an annual income of Rs. 10 lakh or above per annum, might have to shell out a sum of approximately Rs. 35, 000 as annual premium to get a cover of Rs. 2 crore.

Term Insurance for Age group of 50 to 59:

Normally, the premium for a term insurance plan significantly increases for the individuals in their 50s as compared to other age groups. This feature majorly affects someone’s decision to buy a term insurance plan.

The health risks too are higher as compared to someone who belongs to a younger age group. Besides this the underwriting risk is also impacted with increasing age.

However, there might be certain situations in life wherein one might feel the necessity to buy a term plan despite her/his increasing age or in their 50s. Few of such scenarios are:

  • If s/he is the sole bread winner of the family
  • If s/he has financially dependent children
  • If s/he has a spouse who is dependent on your pension
  • If s/he has financial liabilities and debts to take care of
  • If s/he has to work after her/his retirement

Buying a term plan in the aforementioned scenarios will certainly help the policyholders to manage their finances better in sunset years irrespective of their higher age.


In the end, it’s always a better decision to buy a term plan in an early age group to cover different financial needs such as funding the child’s education, debts & loans and other milestones such as safeguarding your spouse’s retirement etc. Buying a term plan lets the policyholders’ family lead a financially secured life even when they are not around.