A term plan is indeed one of the most useful forms of life insurance. It is affordable and offers a comprehensive cover to the policyholder. In order to know the best age to buy a term insurance plan, first you should know till what age term insurance can be taken. The term plan age limit in India is between 18 to 65 years. This means that you can buy a term plan anytime during your 20s, 30s, or 40s till the age of 65. However, research suggests that the earlier you get it, the better it will be for you.
Reasons why you should get a term insurance when you’re young
Though the term insurance maximum entry age in India is 65, you should get it a relatively young age, perhaps in your 20s. Below are the 3 reasons to buy term plan at an early age:
When you’re healthier – A term insurance plan is cheaper for those who are fit and healthy. As we all know, a younger person is generally healthier than an older person. So, make the most of this and buy a term plan at a low cost when you are young and fit. You can take the cover for a long term and continue to stay protected at a low cost.
When you have fewer responsibilities - When you are in your 20s, you will not have too many dependent family members to take care for. However, things will dramatically change in another 10 years or so. Therefore, it makes sense to buy a term plan now and keep it going for a long tenure. So, you will already have a life cover when your spouse and kids come along. Now that is a smart investment, isn't it?
When you can afford it – A term insurance plan is not as expensive as a whole life plan, a ULIPor even an endowment life insurance plan. So even with your fresher's salary, you can afford a term insurance plan. These plans therefore are very well suited for youngsters who are just starting out in their careers.
Advantages of a term plan
There are many advantages of a term plan. As mentioned above, these plans are available at lower costs and you can stay covered for a very long time. Also, the term plan age limit is as high as 65 years. This means that you can purchase a term plan during the latter stages of your life even if you forget to buy it when you were young. You can also surrender your plan any time if you feel it is not delivering well for you.
Buying a term plan
It is very easy to buy a term insurance plan. Most of the insurance companies nowadays offer these plans online. So, all you have to do is go to the insurer's website, submit very few documents, make an online payment and the plan will be yours. It is actually this simple! Do run a comparison before you buy a term plan as it will show you what your options are and will help you find the best plan at the best rate.
What is the best age to buy a Term Plan? – Verdict
So, as you can clearly see from the points mentioned above, the best time to buy a term plan is when you are young, healthy and free of responsibilities. However, considering that term insurance maximum entry age is 65, even if you are in your 30s, 40s, 50s, or in early 60s, and haven't bought term insurance yet, you may very well consider getting it now.
Explore the different options you have and take a life cover that would cater to your insurance requirements. Once that is done, your term plan will kick in and keep you and your loved ones covered from future financial problems.