What Is the Right Age to Buy Term Insurance Plan?

Term insurance plans are essential to safeguard your loved ones who are financially dependent on you. While you can never predict or control adversities, you can combat their impact to some extent. A term plan is a suitable way of creating a secured future for your family and acts as their financial cushion in your absence.

The 20s

The early 20s usually mark the beginning of your professional life. The happiness of receiving your first paycheck is priceless, but it is essential to put it to some productive use. Moreover, since you have very few obligations at this age, it can be easy to contribute a part of your income towards paying insurance premiums. Besides, when you’re young, buying a term plan allows you to enjoy lower premium rates.

The 30s

This is the time when most people have a stable career with a regular flow of income. However, your 30s are also a time when your responsibilities increase with marriage and children. Besides, you may want to avail a loan to build your dream home, buy a car, etc.

In case of an unfortunate event, your family would have to bear the burden to meet these debt obligations. In the absence of sufficient resources to repay your loans, they may be forced to compromise on their existing standard of living. To save your family from such hardships, it is important to get term insurance. Moreover, securing their future will keep you at ease while striving to achieve new milestones in life.

The 40s

This is typically that phase of life where you are comfortably placed in your profession and strive to give your family the best of luxuries. The scope of your expenses widens further with your children’s career choices and material needs. You may also have some debt obligations with pending loan repayments.

A term insurance plan can help you ensure that your family is able to continue with a comfortable lifestyle, even if you are no longer around. Remember to select an adequate amount of sum assured that helps your family to lead a financially independent and dignified life in your absence.

The 50s

You might have a decent number of professional accomplishments by now. But there can be a few personal commitments that are yet to be addressed. Building a corpus for your children’s higher education or wedding could be a recurring thought in your mind.

However, if an unfortunate event strikes, it may cause financial turmoil in your family. Buying term insurance at a later stage in life seeks a higher premium cost. However, that should never be a hindrance in the way of creating financial security for your loved ones.

Points to consider while deciding the best time to buy life insurance

Existence of uncertainties - Life is unpredictable, and adversities can set in, irrespective of your age. The COVID-19 pandemic situation has emphasised on the importance of term insurance. Therefore, it helps to be prepared against all odds and not keep the purchase of insurance for a later time in your life.

Premium amount - Various factors can influence premium costs. Age is one of the important parameters that insurers consider while deciding the premium for your plan. The younger you are, the lower are the premium rates. As you age, you may suffer from poor health. This requires you to pay higher premiums. Hence, it is advisable to buy insurance when you are young to avail the benefits of concessional premium rates.

To sum it up

Given the existing instabilities and the rise in premium with age, the best time to buy life insurance is as early as possible. A term plan is crucial for your family’s well-being, so it is better to make it a priority. You can also consult a reputed insurer like PNB MetLife Insurance about buying the best term plan at competitive premium rates.

Visit PNB MetLife to know more about Term Insurance & Term Plan