When Is the Right Time to Buy Term Insurance?

Written by : Knowledge Centre Team

2021-04-16

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If the only bread-earner of the family passes away suddenly, the family may undergo some notable financial shock. The monetary savings that the family owns might not be completely sufficient to meet all their financial obligations. Hence, to avoid all these situations, financially responsible people plan for the secured future of their family in advance and buy term life insurance at an early age.

What is the right age to buy term insurance policies in India?

What is the right age to buy a term life insurance policy? This is the most commonly asked question people ask before buying a term plan. Many people are not aware of the benefits of buying a term insurance plan at an early age and feel that the late 30s is the most suitable age to get a term life insurance plan. However, this is just a misconception, and it is always suggested by veteran financial advisors that one must buy term plans at an early age.

Although it is a known fact that not every person holds the same income, therefore, many people might not hold enough funds to buy a term plan when they start earning. Keeping this thing in mind, mentioned below are the different age stages at which people can buy the best term plan online.

In the early 20s

The early 20s is the most suitable age when a person can buy a term life insurance plan. This is the age when many people graduate from colleges and start earning. Purchasing term insurance at this age will secure the future of the policyholder along with inculcating good saving habits in them.

Also, in the present times, many individuals get married in their late 20s or early 30s, and hence they do not have any additional financial burden on their shoulder. They can easily keep aside a small portion of their income to pay for the premiums. Remember, the earlier you buy a term plan, the smaller will be the premiums. There are a lot of reasons due to which you may end up paying more premium when you buy a term life insurance.

Read more on reasons you might be paying a higher premium.

In the late 20s or early 30s

The late 20s or early 30s is usually the time when people get married and enter into the new phase of their lives. Hence, to secure the future of their spouse along with their kids, this is the most suitable time to purchase a term life insurance policy.

As people have just started their married life, there are no kids, and the expenses are also less. At this point, people can easily draw out funds for these term plans, and they can also receive various tax benefits under section 80C of the Income Tax Act, 1961.

Why is it better to buy term life insurance at an early age?

A term life insurance policy is basically a protection plan that individuals take upon their own life. This plan assures monetary security to the family of the policyholder in case the person holding the policy passes away.

Getting a term life insurance plan at an early age can be extremely beneficial due to many reasons. The main reason why people prefer receiving these term plans at an early age is because of the low monthly premiums.

For example, if a person takes up a term life insurance plan at the age of 20 or 25, then they are required to pay small premium when compared with the people taking these term plans at a later stage in their life.

Read more on the advantages of buying a life insurance plan at an early age.

How long should you hold term life insurance?

When purchasing a term life insurance policy, it is advisable that you must always check the duration of these plans. It is always better to get a term insurance policy for a longer duration rather than the short term ones as the long-term plans are bound to safeguard you and your loved ones till the time of your retirement.

As 60 to 65 is the normal retirement age in our country, you can set these numbers as the benchmark age and look for plans that provide coverage for a longer duration.

How term plan from Canara HSBC Life Insurance can help you?

In the present times, there are a lot of banks and private financial institutions that provide term life insurance plans. There is a wide range of factors that impact life insurance premiums. Hence, it is always advised that people must analyse all the factors like their age, income, expenses, plan coverage, debts and liabilities before buying a term life insurance.

Term life insurance plans from Canara HSBC Life Insurance is available online. iSelect Smart360 Term Plan offers complete coverage to people till the age of 99. Apart from this, the plan also renders some additional benefits like:

Return of premium alternative when the policyholder outlives the maturity date of the term life insurance policy. That means all the premiums that you have paid throughout the tenure will be paid back, if you outlive the policy.
Increasing sum assured on the term life insurance policy taken by the policyholder. You can choose to increase the sum assured as per your evolving needs.
Apart from securing the life of the policyholder, iSelect Smart360 Term Plan also has the option to cover your spouse in the same policy.
For people who are not comfortable in paying a huge amount, this term plan has an option for limited premium payment.

It is always advisable that you take term insurance plans at an early age so that you can protect yourself and your loved ones at more modest amounts of monthly, yearly, or quarterly premiums. In addition to this, you must also evaluate the necessities and requirements of your family and weigh which policy can provide them with the maximum benefit.