Till What Age One Should Take Term Insurance

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Term insurance is one of the basic types of life insurance with a very low premium. So, investing in those won’t have a lot of financial burdens. But people still hesitate from buying one because of various reasons. One reason is that they think their present age is not the right time to purchase an insurance policy. These people could benefit from knowing how age plays an important role in the mortality amount through a good term insurance calculator. Read on if you want to know about the right age to have an insurance policy and see its visual representation in a term insurance calculator.

Term Insurance Calculator and Age Factor

A term insurance calculator is an online tool that helps decide the investment in term insurance. You can input your financial situation and requirements, and the calculator will show plans and premiums based on that input. A term insurance calculator only shows a premium amount based on the inputs most of the time. But nowadays, term insurance calculators on the insurer’s website also allow plan customization and modifications of covers.

One thing that you will notice whenever you use a term insurance calculator is that the premium amount will keep on increasing with the policyholder’s age. And that too for the same assured mortality amount. This means age plays a crucial role in deciding the premium amount and other critical outcomes of the policy.

Age Criteria for Having Term Insurance

The usage of a term insurance calculator will help you know which is the perfect age to purchase term insurance. And from the results of the term insurance calculators and expert advice, the best age for you to invest in term insurance is as soon as you turn 18. There are special relaxations for minors, but this age is not apt as minors are dependent on their parents for their monetary requirements.

18 is the right time to invest in term insurance as you don’t have to pay a higher premium amount. With age, the health complications and risks also increase, and the insurer charges more and more for the increasing age.

Also, there is no threshold limit on when you should have term insurance as per experts’ suggestions. As per the IRDAI regulations, term insurance is only valid until the age of 65, but it can increase as per the insurer’s discretion. So, if your insurer has a higher age limit for term insurance eligibility, you should take it and have term insurance as long as possible.

Having term insurance for such extended durations means protecting your family and dependents even at a ripe old age. But doing so is also very beneficial if you start investing in plans at the above-mentioned early age of 18. As you started early, the premium age will be the same from then onwards, and you can keep renewing the policy to retain such a low premium. And considering the tax relaxations over the years, you can save a huge amount of money that you otherwise pay as income tax.

Benefits of Term Insurance for Different Age Groups

But don’t worry if you never used a term insurance calculator or knew the importance of starting term insurance early. You can still purchase a policy whenever you want and obtain its benefits as long as you live, and after that, your nominees can also live a financially secure life. Given below are some ages where investing in term insurance has specific benefits.


Investing in term insurance for children has several added benefits and tax relaxations. These are mainly from the government and partially from the insurers to promote child plans and secure a child’s future in their parents’ absence.

Young Adults at The Beginning of Their Careers

Young adults also benefit from term insurance, mainly due to the low premium and availability of cash from income. Also, most of them don’t have a family or other responsibilities, so they can easily allocate these funds.

Older People with Family Responsibilities

Elder people can invest in these funds to protect their families and take care of them in case of their untimely demise. If they were the family’s sole earning member, they wouldn’t have to worry about the family’s expenses or their children’s future education.

Now you know how, even though there is no perfect age to purchase term insurance, an early purchase will bring extra returns. To further increase the yields from term insurance, you must look into life insurance plans by a reliable insurance company.