Term Insurance Age Limit

Did you know that one of the eligibility criteria for term insurance plans is your age? Yes, term plans have specific criteria for the minimum and maximum ages of entry for prospective policyholders. Although the term insurance age limit varies from one plan to another, it is generally between 18 years to 65 years, that is, you need to be at least 18 years of age to purchase a term plan.

 

The upper ceiling of the term plan age limit is usually 65 years. However, there are certain term plans that can be purchased even after the age of 65 years. These plans are termed Term Plans for Senior Citizens and have been designed to offer the benefits of term insurance to people who do not have an active term plan post the age of 60 years.

Why Should You Buy a Term Plan at an Early Age?

It is advisable to buy a term plan as early as possible in your life, preferably in your twenties or thirties. There are several benefits of opting for term insurance at a relatively young age. Some of these benefits have been discussed below.

 

 

1. High sum assured:

 

If you wish to get the maximum advantage of term insurance, then you must buy it at an early age. The earlier in life that you buy a term plan, the higher is the sum assured you can opt for.

 

2. Low premium:

 

By choosing to buy term insurance at a young age, you can benefit from paying a low premium for the plan. Since young individuals are less vulnerable to various health-related risks and, therefore, have a lower death risk, insurers categorise them as low-risk policyholders and offer them lower premiums on term plans.

 

3. No need to worry about the maximum age limit for term insurance:

 

Another advantage of buying term insurance at a young age is that you need not worry about the term insurance plan age limits, which would be the case if you were to postpone the purchase of a term plan to your sixties.

 

4. Financial stability:

 

Choosing to purchase a term insurance plan during the beginning or middle of your earning years can enable you to pursue your financial goals whilst having the safety net of a term plan to protect the financial future of your family in the case of any mishap.

 

5. Financial discipline:

 

One of the benefits of buying term insurance at a young age is that it can help you inculcate financial discipline in your behaviour. The periodic payments of the premium of your term plan would necessitate adherence to planned finances.

Inclusions in Term Insurance Plans

A term insurance plan provides you with a life cover that is payable to your beneficiary in the event of your demise during the policy term. Here are some of the major inclusions in a term plan.

1. Life cover for the policyholder for the term specified in the policy

2. Additional coverage if the policyholder has purchased add-on riders, for instance, a critical illness rider, a personal accident rider, waiver of premium rider, etc.

3. Flexibility to pay the premium in different frequencies, which can be one of the following:

• One-time payment
• Yearly payment
• Bi-annual payment
• Quarterly payment
• Monthly payment   

 

4.  The option to choose the mode of the payout of the death benefit under the term plan, namely:

• Lump-sum payout
• Periodical payouts
• Part lump-sum and part periodical payouts 

 Exclusions From Term Insurance Plans

Term insurance plans also have some exclusions. Although the specific exclusions in a particular term plan depend upon a variety of factors, including the term insurance entry age limit, there are some general exclusions that apply to a majority of term plans.

 

These exclusions have been listed below:

 

1. Death of the policyholder owing to a pre-existing medical condition

2. The lapse of a term plan due to the non-payment of the installments of premium

3. Death of the policyholder in a war or war-like event

4. Death of the policyholder due to suicide

5. The hiding of material information during the time of policy purchase

6. The submission of inaccurate information to the insurer by the policyholder

7. Death of the policyholder due to drug abuse or alcohol abuse

How to File a Claim for a Term Plan?

It is easy to file a claim for a term insurance plan. All your beneficiary needs to do is follow the steps discussed below:

 

1. Visit the official website

2. Go to the Claims page

3. Enter the term policy number

4. Submit the required personal details and other important information

5. Upload all the necessary supporting documents

6. Submit your term insurance claim form

7. Claim decision will be made after assessment of the claim

To sum it up

It is possible to buy term insurance even after the age of 65 years. However, since most plans have a term plan maximum age, the selection of plans available for you to choose from may be quite limited in such a case. Owing to several advantages of term insurance purchased early in life, you must consider buying a term plan in your twenties or thirties.