Term insurance age limit: At what age can you no longer get term life insurance in India
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Term insurance can unfortunately not be purchased beyond a certain age limit. More on this in the blog.
We already know the innumerable benefits of buying term insurance for ourselves as well as our loved ones. However, there is a certain condition attached to buying a term plan – your age. Yes, as you grow older, it can become difficult, in fact nearly impossible after a time, to buy term insurance. This blog details more about the term insurance age limit.
A lot of people interested in buying term insurance ask, “Up to what age can we buy the term plan? Is there an term insurance age limit to buying term insurance?” The answer is yes. All term insurance plans have a specific age limit after which buying the policy is not permissible.
Eligibility Age Criteria for Term Insurance – Term Insurance Age Limit
Term insurance policies have certain specific eligible age criteria that define the minimum and maximum age limits for entry into the plan.
Most plans generally provide an age range of 18-65 years for buying term insurance (however this criteria may vary between different plans and it’s a good idea to check with your insurer before buying). That said, the minimum age for buying a term insurance plan is always 18 years, regardless of the maximum limit. This means that one needs to be an adult in India in order to purchase term insurance.
Now, coming to the age defined by insurance companies after which buying term insurance is not possible. Most insurers cap the age limit at 65 years (here again, this limit may vary from one insurer to another so always check). Also, there are some term insurance policies which can still be purchased after the age of 65 years.
How is that possible, you’d think! Well, these are special kinds of term insurance plans specifically designed for the elderly to help them sail through old age with ease. Such plans are known as Term Plans for Senior Citizens. They are meant to offer the benefits of insurance to the elderly past 60 years of age.
Why Buy Term Insurance Early in Life?
Now that we know that there is a term insurance age limit, it only makes sense to buy this plan at an early stage of your life. This is because when you’re younger, it would be much easier to buy term insurance without difficulty and it would be helpful as well. Let us look at some of the key benefits of purchasing life term insurance early on:
- The biggest advantage of buying term insurance at an early stage of life is that you need not worry about the maximum life insurance age limit. This is because you have plenty of time now which wouldn’t be the case if you were to buy a term plan in your 60s.
- You can adopt the practice of maintaining a financial discipline in your life earlier on. The need for paying regular premiums towards term insurance would encourage you to save a certain amount of your earnings.
- You also stand entitled for earning a higher sum assured than what you would be offered by the insurer the older you get in age. A high sum assured means higher coverage against uncertainties.
- You can easily achieve all your financial goals ahead of life, such as childrens’ education, marriage expenses, and the like, by buying term insurance earlier on. Moreover, you also tend to assure financial security for you and your loved ones for the future.
- One of the most lucrative benefits of opting for term plans at a young age is the relatively lower premium payable. This is because you would be at a much lower risk of health issues and also the probability of death is quite lower as compared to when you get older. This is why most insurers would be happy to offer you term insurance at lower and attractive premium rates.
What is the Maximum Age Limit for Term Insurance Risk Coverage?
We learned above the maximum term insurance age limit purchase. Now let us quickly understand the maximum age limit up to which the policyholder can opt for risk coverage from the insurer.
While the term insurance age limit is only 65 years, after which it is not permissible to purchase a standard term insurance plan, one can still opt for coverage of risks as part of the term plan up to at least 99 years old.
Some insurance companies do provide risk insurance coverage to senior citizens for longer and therefore it is important to check with your insurer about the same while purchasing a term plan (even though early on in life).
Top Insurance Companies Offering Term Insurance in India
While we are discussing the subject of term plans and the term insurance age limit for both purchase as well as risk coverage, it would be helpful here to list out some of the best insurers offering term plans to individuals:
| Name of the Insurer | Name of the Plan | Claim Settlement Ratio (CSR) of the Insurer | Sum Assured Range Offered | Sample Premium to be Paid Per Annum (calculated for a male aged 30 years with an annual income of Rs. 500,000) | |
| Aditya Birla | Life Shield Plan | 98.04% |
|
Rs. 5,591 | |
| Edelweiss Tokio | Total Protect Plus | 97.01% | Rs. 25,00,000 – no limit | Rs. 4,902 | |
| HDFC Life | Click 2 Protect Life | 98.01% | Rs. 50,00,000 – no limit | Rs. 7,185 | |
| Bajaj Allianz | Smart Protect Goal | 98.48% | Rs. 50,00,000 – Rs. 10,00,00,000 | Rs. 7,348 | |
| ICICI Pru | iProtect Smart | 97.90% | Rs. 50,00,000 – no limit | Rs. 8,021 |
If you happen to outlive the tenure of your term plan, the coverage of your policy ends. In this case however, you can either convert the plan to permanent life insurance before its expiry or buy a new plan. In addition, you may also choose to continue using the policy without coverage benefits.
Upon the expiry of your term life insurance term, the benefit of life insurance cover also ends.
Generally, the longest time period for which most insurers grant term insurance is 40 years.
Author Bio
Paybima Team
Paybima is an Indian insurance aggregator on a mission to make insurance simple for people. Paybima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. Paybima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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