At What Age Can You No Longer Get Term Life Insurance?

Every individual in this universe wants his/her family to be happy and healthy. Even though most individuals do not directly relate healthy life with financial stability and security, still it plays a very important role in our lives. If you are a sole earning member of your family, then it is your responsibility to protect your family’s financial future. A term insurance plan is a pure protection plan that acts as an efficient tool to provide financial security to your family in case of your absence during the policy tenure.

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Mostly like other insurance policies, term insurance also comes with a minimum and maximum eligibility factor. However, there are a lot of misconceptions that exist about the age limit of term insurance like the maximum age to avail term plan is 60 years or term plans only provide life cover till 70/75 years of age.

What is Term Insurance Age Limit?

Term insurance is a basic protection plan that provides a death benefit in case of an untimely demise of the policyholder during the policy term. A policyholder can buy term insurance between the age of 18 years to 65 years. So it is possible to buy a term plan at 65 years of age and opt for the life cover up to the age of 99. 

The financial goals vary with advancement in age and require modifications in the life coverage accordingly. To determine the right plan as per your age, it becomes very important to analyze the term insurance plans based on different milestones of life. It is always a smart decision to buy a term insurance plan at an early age.

Let’s understand the age limit for term insurance and also about all the age groups in India availing term insurance:

  1. Term Insurance in the 20s

    The 20s is the time when people are more active and enthusiastic about building a career and getting new jobs. However, most of them who enter the professional market are financially burdened with student loans and other responsibilities. If you are a sole earning member of the family and somehow meets with an unfortunate event. In such situations, all the liabilities shifted to the parents of the policyholder. It is a wise decision to buy a term plan in your 20s as it helps the parents against financial uncertainties and they can also pay their debts from the amount they receive as nominee/beneficiary of the policyholder. One of the major benefits of term insurance is that its low premium rates when you buy it at a younger age. This is because the risk of death or illnesses is low at early ages. So if you purchase a term plan in your 20s, you can receive substantial coverage at a comparatively low price.

    For Example, Aman graduated in 2021 and secured a job at a reputed firm in Delhi. He is getting his first salary that is enough to pay his student loan EMIs and other related expenses. However, after all this, he purchased a term plan. The premium rates are relatively lower and he can save more money on taxes because of his age.

  2. Term Insurance in the 30s

    The 30s is the exciting period of life where most individuals think of starting a family, and financial liabilities are the additional burden on the family. This is the age when one wants to buy a new home, car, or want to take care of his/her child’s education, and parents, all these instances require taking a loan. So relying only on one’s earning and savings is not enough when one is in his/her 30s. At this age, one needs financial stability and security.

    For Example - Aman in his 30s has been married for 3 years. He and his wife, both decided to buy a new house for which a loan is a requirement. However, thankfully Aman already has a term insurance plan that can take care of his financial liabilities, if god forbid, he is not there to repay it.

  3. Term Insurance in the 50s

    If you are in your 50s and have not purchased a term insurance plan. Then it is the right time to do this. The reason is, by this time, your children must be becoming financially independent, you are nearing your retirement age, and the risk of diseases is more in the late 50s.

    For Example

    Rahul in his 50s recently bought a term insurance plan with critical illness cover. Though he has health insurance cover for his and his loved one’s health protection, he believes that term insurance is equally important in cases when his health cover falls short of providing adequate protection. Moreover, a term plan along with a critical illness cover can help him to claim extra deductions under section 80D of the Income Tax Act, 1961.

  4. Term Insurance Plan for Senior Citizens

    Earlier, it was very difficult for senior citizens to purchase a term insurance plan in India. However, today people who are above 60 years can avail the benefits of the term plan. Some of the term insurance plans have maximum entry age of 65 years, but it is not recommended to wait till 60 to buy a plan. While the major belief is people do not require a term plan after retirement but increasing life expectancy, employment options after retirement have nullified this concept. 

    Nowadays, most individuals work after retirement and also contribute to the house income. Some support their children even after they retire or few have to complete their unpaid debts. Senior Citizens require to have a clean medical record to avail of term plans. So, always check with the insurance company before purchasing the plan. The age limit for term insurance should always be checked before buying a term insurance plan from any insurer. 

What is the Minimum and Maximum Term Insurance Age Limit?

Minimum Entry Age

18 years

Maximum Entry Age

65 years

(Check with the insurance company if they offer term plans for senior citizens if you are >60 years)

Maximum Coverage for Term Insurance

75 years

*Policybazaar does not endorse, rate, or recommend any particular insurer or insurance product by an insurer or any other financial product. 

*All savings are provided by the insurer as per the IRDAI approved insurance plan. Standard T&C applies.

Wrapping It Up!

Buying a term insurance plan is very important to live a burden-free and financially stable life. However, some factors should be taken into consideration before making a decision. The cover should be based on the annual income and financial objectives of the policyholder. It is always advisable to buy a term plan at an early age because with the advancement in the age, the premium prices also increase. So, the term insurance age limit is one of the most important factors in deciding the premium prices. 

People in their 50s and 60s can also avail themselves of term plans as they can protect themselves and their family members against certain financial liabilities that come after retirement. If you are thinking to buy a term plan after 65 years then, check with the insurer if they are offering term insurance plans for senior citizens or not.

Written By: PolicyBazaar

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