When is the Right Time to Buy Term Insurance Plans?

Financial experts suggest people buy term insurance as early as possible. It is a crucial financial product that ensures the security of your family in the event of your unfortunate demise. However, determining the right time to purchase a term plan depends on various factors such as age, financial responsibilities, and long-term goals. The general rule is that the earlier you buy, the lower your premiums and the higher your coverage benefits.

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Let us take a look at when is the right time to buy term insurance in India.

Why You Should Buy Term Insurance Early?

Financial Security for Dependents: Term insurance provides a financial safety net for your loved ones in case of an unforeseen event, helping them manage daily expenses, loans, and future goals.
Lower Premiums: When you buy term insurance at a younger age, the premiums are much lower compared to buying it later in life. This helps you save on long-term costs while maintaining the same level of coverage.
Higher Coverage: A policyholder of a young age can secure a high sum assured at a more affordable rate compared to other types of life insurance, ensuring greater financial security for their family.
Longer Policy Term: Buy term insurance early to opt for a longer coverage period, that ensures the financial protection of your family throughout your working years and beyond.
Easier Eligibility: Younger individuals with good health have a higher chance of getting their life insurance policy approved without additional medical tests or higher premiums.

Term Plans

₹1
Crore

Life Cover

@ Starting from ₹ 13/day⁺

₹50
LAKH

Life Cover

@ Starting from ₹ 8/day⁺

₹75
LAKH

Life Cover

@ Starting from ₹ 12/day⁺

What are the Best Life Stages to Buy Term Insurance?

In Your 20s – Ideal Time to Buy

The lowest premium rates due to young age and good health.
Provides long-term financial protection for future responsibilities such as home loans, marriage, and children.
Ensures financial security for dependent parents if required.

In Your 30s – Most Recommended

Balances affordability with growing financial responsibilities.
Essential for those with dependents such as a spouse or children.
Helps cover ongoing financial commitments like home loans and children's education.

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In Your 40s – Still a Good Option

Premiums are moderately high but still manageable.
Crucial for individuals with significant financial obligations such as loans and children's higher education.
Ensures income protection for the family until retirement.

In Your 50s – Last Opportunity for Cost-Effective Cover

Premiums are significantly higher, and medical tests are required.
Suitable for those with financial dependents and outstanding liabilities.
Whole life or limited pay options may be preferable for long-term financial stability.

After 60 – Limited Options Available

Term insurance becomes expensive and requires comprehensive medical evaluations.
Alternative options such as whole life insurance or senior citizen-specific plans may be more suitable.

Comparison of Buying Term Insurance at Different Ages

Age Group	Benefits of Buying Term Insurance at This Age
20s (Starting Your Career)	Premiums are the lowest, making it highly affordable. Provides early financial security for family and future liabilities. Easy approval with minimal medical scrutiny.
30s (Growing Responsibilities)	Allows you to secure a high sum assured at a reasonable premium. Protects your spouse and children financially. Covers major financial commitments like home loans and children’s future education.
40s (Peak Earning Years)	Ensures financial stability for dependents in case of unforeseen events. Helps cover outstanding loans and future expenses like children's higher education and marriage. Premiums are slightly higher but still manageable.
50s (Preparing for Retirement)	Provides financial security for your spouse in your absence. Covers outstanding debts and any remaining financial obligations. Some plans offer return-of-premium options for added benefits.
60s and Beyond (Creating Legacy for Family)	Offers financial support for your spouse and dependents. Helps manage medical expenses and end-of-life costs. Some policies provide limited coverage options, but premiums are significantly higher.

What are the Key Points To Consider Before You Buy Term Insurance Plan?

Before purchasing a term plan, it is important to consider several factors to ensure you choose the right coverage for your needs.

Age and Health: The cost of term insurance is lower when you are younger and in good health. Buying a term insurance policy early can help you lock in affordable premiums.
Financial Dependents: If you have family members who rely on your income, buy term insurance at the right time to ensure their financial stability in your absence.
Loans and Liabilities: If you have outstanding loans, such as a home loan or personal debt, a term insurance payout amount can help your family pay off these obligations without financial stress.
Future Financial Goals: Buy term insurance plans to support long-term financial goals such as funding your children's education, marriage expenses, or retirement planning for your spouse.
Income Replacement: If your family depends on your income for their daily expenses, a term plan income replacement policy provides them with a financial cushion in case of an unforeseen event.

Final Thoughts!

The best time to buy term insurance is as early as possible, ideally in your 20s or 30s, to secure maximum benefits at the lowest cost. However, even in your 40s or 50s, buying term insurance remains a valuable decision for ensuring financial protection. Choosing the right policy based on individual financial needs and future goals is key to long-term security.

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˜The insurers/plans mentioned are arranged in order of highest to lowest Sum Assured(SA) offered by Policybazaar’s insurer partners offering term insurance plans on our platform, as per ‘first year premium of life insurers as at 31.03.2025 report’ published by IRDAI.

Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by any insurer. For complete list of insurers in India refer to the IRDAI website www.irdai.gov.in

Rs. 400/month is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 400/month (Rs.13/day) is starting price for a 1 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 230 is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 8/day is starting price for a 50 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 12/day is starting price for a 75 lakhs term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

+Rs. 497/month is starting price for a 1.5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 487/month is starting price for a 2 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 626/month is starting price for a 3 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 905/month is starting price for a 5 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,267/month is starting price for a 7 crore term life insurance for an 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

*The full refund of premium is available on availing the one-time option of refund of premium. Total premium paid for policy (paid for add-ons) will be the special exit value, payable on availing the one-time option of refund of premium if you wish to completely exit the policy.

+Rs. 447/month is starting price for a 1 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs.679/month is starting price for a 2 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 910/month is starting price for a 3 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,374/month is starting price for a 5 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

+Rs. 1,924month is starting price for a 7 crore term life insurance for an (NRI) 18 year-old male, non-smoker, with no pre-existing diseases, cover upto 30 years of age.

Women

+Rs. 400/month is Starting price for a 1 crore term life insurance for an 18 year-old Female, non-smoker, with no pre-existing diseases, cover upto 30 years of age, rounded off to nearest 10.

Rs. 461/month is the starting price for a 1 crore term life insurance for an 24 year-old female, non-smoker, with no pre-existing diseases, cover upto 54 years of age.

1,642/month is the starting price for a 1 crore term life insurance for an 44 year-old female, non-smoker, with no pre-existing diseases, cover upto 74 years of age.

Prices offered by the insurer are as per the approved insurance plans | #All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply | **Tax Benefits are subject to changes in tax laws.| Policybazaar Insurance Brokers Private Limited

We will respond in the first instance within 30 minutes of the customers contacting us. 30-minute claim support service is for the purpose of giving reasonable assistance to the policyholder in pursuance of the claim. Settlement of claim (including cashless claim) is the responsibility of the insurer as per policy terms and conditions. The 30-minute claim support is subject to our operations not being impacted by a system failure or force majeure event or for reasons beyond our control. For further details, 24x7 Claims Support Helpline can be reached out at 1800-258-5881

For more details on risk factors, terms and conditions, please read the sales brochure carefully before concluding a sale

Policybazaar Insurance Brokers Private Limited | CIN: U74999HR2014PTC053454 | Registered Office - Plot No.119, Sector - 44, Gurgaon, Haryana – 122001 | Registration No. 742, Valid till 09/06/2027, License category- Composite Broker Visitors are hereby informed that their information submitted on the website may be shared with insurers. Product information is authentic and solely based on the information received from the insurers.

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