Prices Increasing soon Prices Increasing Soon

What is the Ideal Term for Term Insurance?

Life is full of unpredictability; anything can happen anytime. So, it is important to create wealth to protect the future of your family, especially in your absence. Choosing the right term insurance plan helps you cover the financial shock on your family if something happens to you. A term insurance plan provides you protection for a certain period or term of your life. The nominee/beneficiary receives the death benefit if the life assured dies during the policy term.

Read more
Gets ₹1 Cr. Life Cover at just
COVID-19 Covered
The Policybazaar Advantage
Dedicated claim support for family FREE
Upto 10% discount for buying online
Only certified experts will call you on 100% recorded lines
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

#All savings and online discounts are provided by insurers as per IRDAI approved insurance plans | Standard Terms and Conditions Apply

By clicking on "View plans" you agree to our Privacy Policy and Terms of use

~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Life is Unpredictable! Protect your family’s future
Get ₹1 Crore Life cover starting from ₹384/month+
+91
Secure
We don’t spam
Check Your Premium Now
Please wait. We Are Processing..
Get Updates on WhatsApp
The Policybazaar Advantage
Policybazaar Advantage Icon
Dedicated claim support for family FREE
Policybazaar team will help and support you at the time of claim. A personal claim handler from our team of experts will get in touch with you when your nominee applies for a claim on our website.
Policybazaar Advantage Icon
100% calls recorded to ensure no mis-selling
We will make sure you get what is promised by the advisors. We conduct regular monitoring of our calls to make sure you get the best experience.
Policybazaar Advantage Icon
Exclusive lifetime discount upto 5% for buying online
The discounts will be valid for the entire policy payment term and is not available if you choose to buy the insurance through offline agents.
Policybazaar Advantage Icon
Advisors available in your city
Our advisors are available in more than 55 cities across India and can help you at your doorstep in understanding the plans and in documentation.
Policybazaar Advantage Icon
Refund at the click of a button
In case you aren’t happy with your purchase, you can cancel your policy hassle-free at the click of a button. We will help you with the cancellation and refund of your policy.

However, the major concern of buyers while selecting a term insurance plan is: What is the ideal term for term insurance? What is the age limit for insurance? However, most of us don’t have a clear idea about how much we should be assured for and how long. As a result, we end up choosing the wrong plan. Let’s discuss these concerns in detail for smooth understanding: 

Term Insurance Plan

A Term Insurance is a pure protection plan that provides life cover to the assured against the risk of an unfortunate event or pre-mature death during the policy tenure. In case of the death of the policyholder, the sum assured amount is paid to the family of the policyholder. The sum assured amount might help the assured’s family to take care of their regular household expenses such as marriage, child’s education, payment of EMIs, house loans, etc. 

The simple formula to calculate the coverage of term insurance depends on the age and the yearly income of an individual. One can go up to 25X of his/her annual earnings to confirm that he/she has a suitable cover. Alternatively, one can calculate the protection cover by using the following formula: 

Income X Working Years = Protection Coverage 

The above formula is a convenient way to reach an accurate figure by considering some factors such as the number of dependents, the living expenses of your dependents, what kind of lifestyle one wants to provide to them, for how long they require financial support after him/her, and current investments. 

As we have discussed, the term period of the term insurance plan should ideally be equal to the number of years the policyholder's family is dependent on him/her. To put things in the right perspective, one should ask the following questions to him/herself: 

What is the corpus required to cover the outstanding responsibilities? 

What financial problems can my loved ones face in case of my absence? 

What are one-time expenses that could arise in the future? 

Factors To Consider While Deciding The Term Period of Term Insurance? 

The following factors play a key role in deciding the term of a term insurance plan:

Age – The duration for term insurance depends on what age you are thinking to buy a term insurance plan. It is always a smart decision to buy a term insurance plan at younger ages. The younger you are, the longer the term, and the lower premium you are required to pay. For example, a 30-year-old is offered a plan of 50 years term whereas a 50-year-old is provided only with 35 years of tenure. 

Liabilities – If you have any type of debts to be paid, your term cover should be equivalent to the unpaid amount of loan and the tenure should be equal to or more than the EMI duration. Later, if something happens to you untimely, then your loved ones are not stressed by the loan amount payments and the insurance earnings will help your family to square off the responsibilities. 

Financial Objectives – As a family, you have several life milestones to accomplish and objectives to meet. It is necessary to select the term of the term insurance plan by following these milestones so that in case of your absence, your financial liabilities are achieved by the sum assured amount that is paid out.  

Extend Your Duration – Go for a term insurance tenure that is available as per your age and profile. If a 30-year-old individual predicts the requirement for life insurance for the next 30 years, then he/she should still go for a 40-year tenure plan because finances are unpredictable. And if at 60 years of age, you want to buy a term insurance plan for the next 10 years, it might not be available. Whereas if at the age of 60, you wish to discontinue your plan, then you can do the same without any consequences. 

Cost-effectiveness – Another important factor is its low premium rates. The longer the duration, the lower is the premium price. Hence, before purchasing any term insurance plan, consider current savings and cash flow, then determine if you can pay premiums comfortably without disturbing your normal life. 

What is the Age Limit For Term Insurance? 

It is possible to purchase a term insurance plan till 66 years of age and you can choose the coverage that continues till 99. You can buy a term plan between 18 years to 65 years. The age limit for term insurance is an important factor to consider. The selection of the term plan is based on the financial requirements, age limit, diseases/illnesses, and any other liabilities.  

What Should be the Ideal Term Period of Term insurance? 

The age limit for term insurance might vary from insurer to insurer. Most of the insurance providers cover the life assured up to the age of 75 years to 85 years and some other might provide coverage till 99 years of age. Determining the ideal term period of term insurance is equally important as evaluating the insurance requirements. You need to give a thought about the money your family may need in case of your absence. 

  1. In Your 20s 

    The decision of purchasing a term insurance plan depends on your current age and your retirement plans. For example, if you are of 20 years and wish to retire at 60 years, then you must opt a 35–50-year term insurance plan. This type of plan keeps you assured till your retirement age. And it is always suggested to buy a term plan at early ages because of low premium rates as the risk of diseases/illnesses are low in younger ages. 

  2. In Your 30s and 40s 

    In your 30s and 40s, you will possibly get married and start your new family. Now that you have new dependents in your family and it is the right time to start thinking of purchasing a term insurance plan. Before buying a term plan, consider the type of business you have, retirement plans, and the type of employment. 

  3. In Your 50s and 60s 

    At 50 or 60 years of age, your children will likely be settled and the financial burden on you to pay the bills and other related expenses will decrease. At this time, you can think of having a pocket-friendly plan for 15 to 25 years. 

Best term Insurance Plans in India Best term Insurance Plans in India

Wrapping It Up! 

A term insurance plan provides long tenure benefits to the policyholder and his/her family at a very pocket-friendly premium rate. Everyone from young working individuals to working parents should go for a term plan. The sum assured amount should be sufficient to cover your loved one’s financial requirements when you are not around. So, overall, this plan gives peace of mind that your family is safe even if you are not with them.

Different types of Plans


Premium By Age

Term insurance articles

  • Recent Article
  • Popular Articles
01 Mar 2024

PNB 2 Crore Term Insurance

Securing your family's financial future involves detailed

Read more
27 Feb 2024

SBI Life 5 Crore Term Insurance

SBI life insurance offers a variety of plans with different life

Read more
27 Feb 2024

Bajaj Allianz Life Insurance Customer Care

Bajaj Allianz Life Insurance is one of India’s leading life

Read more
26 Feb 2024

Kotak 2 Crore Term Insurance

Securing your family's financial future involves detailed

Read more
26 Feb 2024

Tata AIA 2 Crore Term Insurance

Protecting your family's financial future requires careful

Read more
07 Mar 2014

1 Crore Term Insurance - Buy ₹1 Cr Term Insurance Plan...

Term insurance is a type of insurance plan that offers financial security to your loved ones in the event of your

Read more
27 Jun 2018

What Is Difference Between Term Insurance And Life Insurance

Life insurance plans help you create wealth, protect your family for the entire policy term, and save on your

Read more
12 Jun 2018

Claim Settlement Ratio of Term Insurance Plan Providers

Claim Settlement Ratio (CSR) is an important parameter in the selection of an insurance policy. If you are going

Read more
24 Mar 2020

LIC Term Insurance 1 Crore

LIC of India offers various plans to help you secure the financial future of your loved ones. To ensure your

Read more
03 Dec 2020

What Is Saral Jeevan Bima

Saral Jeevan Bima (SJB) is a simple term insurance plan that offers financial protection for policyholder’s

Read more
top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL