A term insurance plan is a financial tool that offers to secure your family’s future, even after your demise. The sum assured under these plans gives a financial respite to the family members of the policyholder in case of his/her early death. While each one of us worries about the financial well-being of our family, a lot of people cannot decide when to start the planning? Although a majority of people are of the opinion that a term insurance plan should be taken at the earliest to avail long-term benefits, most people are thrust with financial and familial responsibilities between their 20s and 30s and are wary of taking any other financial liability, e.g. paying the premiums on a term insurance. On the other hand, some people feel that since there would be a lot of medical expenses as well as potential health risk in the old age, these plans should be taken later in life, so that after their demise their family or loved ones could get the better end of the deal from the sum assured.

However, life is unpredictable. There is no right age to buy term insurance than now! It all boils down to the policyholder’s existing and long-term financial goals.

Below listed are different life-stages and the advantage of buying a term insurance during that time-

In the 20s

The 20s is the age where a person has just started with his/her financial career and is looking out for different experiences. However, you may have some existing debts from student loans to pay off. In case of any unfortunate events, if anything happens to you, a term insurance plan can help cover your existing student loan debts, thus avoiding any financial burdens on your parents.

Another major advantage of buying a term plan in your 20s is that you can get the lowest possible premium at this age. You may need to pay anywhere between INR 1000-3000 on a term insurance premium for a coverage as high as INR 50 lakhs on your term insurance policy.

In the 30s

The 30s is the time when the weight of your responsibilities (especially towards your family) is the heaviest. Not only do you have to worry about your child’s education, but 30s is also the time when you are thinking about buying your own home or car and start your investments. While the income in your 30s is considerably more than what it was in your 20s, the expenses also increase due to an improved lifestyle.

Term plans that require a lump sum one-time premium payment are ideal for this age. You can direct a major part of your bonuses or work appraisals towards these one-time premium term insurance policies while continuing with the financial responsibilities towards your family. You can start a term plan with a basic premium of INR 5,000- INR 10,000 per month.

In your 40S

The 40s is the age where you are financially more relaxed. A large part of your existing home or car loan has been paid off, while a significant part of your child’s education is taken care of. This is the time you can comfortably move aside from your family responsibilities for a while and start investing more for your retirement as well as to secure your children’s financial future. If you have a large corpus to spare, you can take out a large term plan with a coverage of up to INR 50 lakhs at a premium of INR 12,000 to INR 20,000 per month.

50s and after

After 50 years and above, the premium paid on a term plan can be more than double of what a 30-40-year-old individual is paying. This is because at this age, you are much closer to your retirement life and more prone to certain medical conditions.

Nevertheless, you can still enjoy term insurance benefits at this stage. You can avail a heavy term insurance coverage for safeguarding your family’s future, by paying a premium for INR. 20,000-INR.25, 000 per month.

No matter at what stage of life you are, it is always a good option to get a term insurance plan. If your financial conditions do not permit you to make monthly premium payments at the time, you can save for some time to take the lump-sum premium payment options. Either way, you will be one step closer in securing yourself as well as and your family financially, for the future.