Term Insurance Age Limit

Introduction

When buying a term insurance policy, you will usually find a minimum and a maximum entry age. The minimum and maximum ages represent the age bracket within which you can buy the policy. For instance, say the term life insurance age limit is 18 years to 60 years. If you are looking to buy a policy for a minor child aged 8 years, you will not be able to do so. Moreover, buying the policy at 61 years of age will also not be possible.

Similarly, there’s a concept of maximum maturity age. This is the age beyond which coverage is not allowed. So, it also determines the maximum policy tenure that you can choose.

For instance, say you are 40 years old and the maximum maturity age is 65 years. In this case, you can get a maximum coverage tenure of 25 years. Even if the policy offers a tenure of up to 30 years, your coverage would terminate after you attain 65 years.

What Is the Ideal Term Plan Policy Period for You?

The ideal term plan policy period depends on your needs and requirements. It also depends on the age at which you buy the policy, the goals that you have and the time for fulfilling the said goals. For instance, say you are 30 years old and you believe that all your goals will be fulfilled by 60 years of age, buying a term plan for a 30-year coverage tenure would be suitable.

Difference Between Policy Term and Premium Payment Term

Some of the common differences between policy terms and premium payment terms are as follows –

Why Should You Consider Buying a Term Plan at an Early Age?

It is recommended to buy a term plan at an early age. Here are some reasons why -

● Optimum sum assured

When you are young, you are relatively free from medical ailments and are usually in good health. As such, when you buy a term plan, you can choose a high sum assured and the insurance company would allow the higher coverage given your good health. This allows you to choose an optimal coverage limit that would meet your and your family’s financial needs easily.

● Financial stability

As the term plan is issued, you get covered against the risk of premature demise. So, the earlier you buy the plan, the earlier you get coverage. This brings financial stability against unforeseen eventualities as you can secure your family’s finances even in your absence.

● Lower premiums

Term insurance premiums depend on your age. Usually, premiums are lower when you are young and increase as you age. Moreover, the premium, once fixed, does not usually change over the policy tenure. So, when you buy the term plan at a younger age, you can get a low premium and lock in the rates for the whole policy tenure.

Conclusion

Check the term insurance age limit when buying a policy. Also, assess the allowed policy tenure and choose a tenure suitable to cover your financial needs and provide coverage even at old age. You can also choose the whole-life coverage option available under many term plans and get covered up to 99 or 100 years of age for maximum protection.

FAQs

● Can I renew a term insurance policy after the age limit expires?

Once the term life insurance age limit expires, renewal of the policy is not possible. It is because the plan grants coverage only up to the specified age limit beyond which the coverage is not allowed.

● Can I purchase term insurance for my children?

You can purchase term insurance for your children provided they fall under the term insurance age limit as prescribed in the policy. If the policy does not allow coverage for minor children and if you have children below 18 years for whom you want to buy the policy, the coverage would not be granted.

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