Term
Best Age to Buy a Term Insurance Plan and Why
When Pavan, a 30-year-old software engineer in Bengaluru, recently got married, he turned quite serious about his finances. As he also has plans to buy a home in Bengaluru, he decides to first buy a term insurance cover while planning his finances. While reviewing term insurance quotes, he observed that the quotes for his age are twice that of the premium paid by his 25-year-old colleague for the same amount of coverage.
Pavan’s story highlights the often-ignored truth about term insurance – term insurance premium increases as your buying age increases. Age plays a vital role in determining the policy premium, scope of coverage, and ease of terms and conditions.
When it comes to term insurance, the ideal age to buy is as soon as you have any financial liabilities and dependents on you. That means you should ideally buy a Term Insurance Plan in your 20s when you start building your career and life, or in your 30s when you have your own family and parents dependent on you financially. Let us explore why buying early matters, its benefits, what the factors to consider are, and more.