Coverfox.com
  • Insurance
    • Car
      • Car Insurance
      • Companies
      • Third party car insurance
      • Comprehensive car insurance
      • Car insurance calculator
      • New car insurance
      • Zero Dep Car Insurance
      • Buy Car Insurance
      • Compare Car Insurance
      • Car Insurance Articles
    • Bike
      • Two Wheeler Insurance
      • Two Wheeler Insurance Companies
      • Two Wheeler Insurance Claim
      • Two Wheeler premium Calculator
      • Third party Bike insurance
      • Multiyear Bike Insurance
      • Bike Insurance Articles
    • Health
      • Health Insurance
      • Companies
      • Mediclaim Policy
      • Individual Health Insurance plans
      • Critical illness insurance
      • Senior citizen health insurance
      • Arogya sanjeevani policy
      • Coronavirus Health insurance
      • Health Insurance Articles
    • Term
      • Term Insurance
      • Companies
      • Life insurance
      • Life Insurance calculator
      • Term Insurance calculator
      • Life Insurance Plans
      • 1 crore term insurance
      • Compare Term Insurance
      • Buy Term Insurance
      • Term Insurance Renewals
      • Term Insurance Articles
      • Life Insurance Articles
    • Investment
      • Investment Plans
      • Companies
      • Buy Investment Plans
      • Child Plans
      • Pension Plans
      • ULIP
      • Endowment Policy
      • Tax saving investment
      • Buy ULIP
      • Best ULIP
  • About Coverfox
    • About us
    • Insurance Blog
  • Claims
  • Contact us
  • Login
image title
TERM INSURANCE

Term Insurance till what age: How to pick the right policy period?

Sumit Asrani Sumit Asrani 22 June 2017

Picking the right policy period is tricky. Too short - and it defeats the purpose of term insurance. Pick too long a period, and you'll end up paying more premiums than you should. But don't worry, we've got all the right answers in this post.

policy term age

The most critical decisions aren’t easy.

When it comes to term insurance, few key decisions can have a lasting difference to your family.

One such decision is:

How much should be the policy period?

10 years? 15 years? 20, 25, or 30 years? Surely, 40 or till age 99 would suffice. Right? Right?!

If only the answer was so simple - this would be a tweet and not a blog post. :)

To find the right answer, lets first understand why everyone needs a term insurance. You need term insurance to secure your family's lifestyle, until your dependents become financially independent. That means if you are not there anymore, they are still able to afford the rent, school / college fees, pay off the loans, and life a comfortable life. That's it.

And there lies your answer. The policy period should be enough to give your family the time to become financially independent.

Let's go in a bit more detail to help you find the right period for you.

What is Term Insurance

A term insurance is a pure death benefit policy. It provides life cover to the insured against the risk of untimely or pre-mature death during the policy term.

In case of demise of the insured, the sum assured will be paid to the insured’s family. This sum assured will help the dependents to take care of their monthly household expenses, child’s education & marriage, house loan, etc.

The insurance company covers an individual maximum upto the age of 75 or 85 or 99 years. It depends from insurer to insurer. Depending on your current age that would be the highest bar, the maximum age an insurer is providing the policy. So, the term may vary from 5 years to 40 years, depending on your current age and also your choice.

Following are the key factors that affect your term insurance premiums:

  • Age – Age is a primary key factor that decides the premium. At a young age, premiums are much lower than at older age.

  • Gender – Some companies offer rebates to women as studies have shown that the death risk is lower than men.

  • Sum assured – The coverage decides the premium. For a higher sum assured premiums are high.

  • Lifestyle - Non-smokers get discounts on premiums, while smokers end up paying a higher premium.

  • Payouts – Depending on the payouts, the premium amount may differ. If you opt for increasing sum assured premium increases over a period as compared to the level sum assured.

  • Term – The longer the duration of protection, the higher will be the premium.

Term is one of the key factors that determines your term insurance premium. The Policy Term depends on how long you want to provide a financial protection to your family in case of unfortunate eventualities.

Generally, a policy term offered by most insurance companies is between 5 years to 40 years or till age 99. As a Thumb rule, one should always opt for a policy term depending on their retirement age.

Let’s assume, if you are planning to retire at the age of 60 years and your current age is 25 years, you should opt for a 35 years policy term. However, the retirement age may vary for some people who opt to work till the age of 65 - 75 years as consultants. Let’s go age wise how much approximate term cover one should opt for while buying a Term Insurance Policy

In 20s - One can opt for a term of 40 years or till age 99. At young age, you can fix the premiums for 40 years at much lower premiums. It is advisable to go for a long policy period when young, as with age the responsibilities increases, and number of dependents too.

In 30s – One can opt for a term of 40 years or till age 99. It depend how many dependents you have, how long you are planning to work till the time you retire and how long your liabilities will last.

In 40s – When in 40s, one can opt for a term of 40 years or till age 99. By 40s, the time frame of liabilities reduces.

In 50s - By the time one hits a half-century, mostly their children are grown up and become less dependent, and liabilities are lower. Thus, it is advisable that one can opt for a term of 25 to 35 years or till age 99.

Let me list down some important reasons why you should opt for a longer term:

  • Premium Rates are normally fixed. Once you buy the product it would remain same for the entire policy duration.
  • At a younger age, the premiums are lower and will remain constant throughout the term.
  • Your insurability for term insurance remains guaranteed for the entire policy term.

For the more concrete answer you can ask yourself these key questions to find the right term:

  • How long will you work? Or at what age you will retire?
  • How long your family will be financially dependent on you?
  • Are your parents dependent on you?
  • Is your spouse working, how long she will be working?
  • How long your children will be financially dependent on you? If they are into teens, then consider how long it will take them to be on foot.
  • Gauge the time when your liabilities will end that is, if you have 10 years pending to pay the loan amount, consider that.

The most common maturity age for a policy term is 65 to 85 years of age. As per your present age, you can decide the term.

Be sure about Term Life Insurance.
expert assist 100% buying & claim support
express claims Free Nominee Assistance
program
Rated 4.7/5

for Customer Satisfaction on Facebook
5,00,000+
Policies sold
last year
Sumit Asrani
Written by Sumit Asrani
He's a writer. His blood cells are woven with Hypergraphia, as he breathes in books, he exhales words and sneezes poetry. Captivated by the web-of-words he's trying to escape miraculously as a content writer at Coverfox.com.
MUST READ
POPULAR OTHERS
Term Insurance Plan
Understanding claim settlement ratio: Why it matters when you buy Term Insurance Plan
Revive Your Old/Lapsed Term Insurance Policy or Buy a New
Should you revive your old term insurance policy or buy a new one?
Term Life Insurance vs Whole Life Insurance vs Endowment Plans
Term Life Insurance vs Whole Life Insurance vs Endowment Plans: What is more suitable for you?
Buy Term Insurance Early
6 reasons why you must buy term insurance early on in life
Term Life Insurance and Traditional Life Insurance
Term Life Insurance vs Traditional Life Insurance: Which is a better option?
multiple term insurance policies
Can I Buy Multiple Term Insurance Policies?
  • Term Insurance Companies
  • Term Insurance
  • LIC Term Insurance
  • SBI Term Insurance
  • HDFC Term Insurance
  • Tata Aia Term Insurance
  • HDFC life click 2 protect plus 3d plus
  • Popular Searched Plans
  • Max life term plan plus
  • ICICI pru iprotect smart term plan
  • PNB metlife mera term plan
  • Canara hsbc obe iselect lumpsum term plan
  • Aegon life iterm plan
  • Birla sun life protect at ease term plan
  • More From Tax
  • Income Tax
  • GST
  • eFiling Income Tax
  • Income Tax Calculator
  • Income Tax Slab
  • Income Tax Refund
  • Popular Health Pages
  • Mediclaim Policy
  • Senior Citizen Health Insurance
  • Health Insurance for Parents
  • Critical Illness Insurance
  • Cancer Insurance
  • Health Insurance Premium Calculator
  • Life Insurance Types
  • ULIP Plans
  • Endowment Policy
  • Whole Life Insurance
  • Child Plan
  • Pension Plan
  • Investment Plan
  • GENERAL INSURANCE COMPANIES
  • National insurance
  • Oriental insurance
  • United India Insurance
  • Relience General Insurance
  • New India Assurance
  • TATA AIG General Insurance
icon Term Insurance icon Articles icon What Should Be The Policy Period In Term Insurance
×

Get Lowest Rates for term Insurance

  • Secure
  • Licensed By
  • Payment Options
  • Car Insurance
  • Bike Insurance
  • Motor Insurance
  • Commercial Vehicle Insurance
  • Travel Insurance
  • Car Insurance Premium Calculator
  • Family Health Insurance
  • Senior Citizens Insurance
  • Group Insurance
  • Corona Rakshak Policy
  • Corona Kavach Policy
  • Super Topup Plan
  • Term Insurance
  • ULIP
  • e-Term Plan
  • 1 Cr Term Insurance
  • कार इन्शुरन्स
  • टू व्हीलर इंश्योरेंस
  • टर्म इंश्योरेंस
  • हेल्थ इंश्योरेंस
  • मेडिक्लेम पॉलिसी
  • Learn About Insurance
  • Network Hospitals
  • Cashless Garages
  • Get Android App
  • Learn
  • About Us
  • Contact Us
  • Careers
  • Sitemap
  • FAQs
Connect with us
Become a Partner
Become a Coverdrive POS Agent

Coverfox Insurance Broking Pvt. Ltd. : Unit D4131-4139, 4th floor, Oberoi Garden Estates, Near Chandivali Studio, Andheri East, Mumbai - 400072

Licence No. 478 , IRDA Direct Broker Code: IRDA/ DB 556/ 13 , Valid till: 26/12/2022, CIN: U66000MH2013PTC243810

  • Shipping & Delivery Policy
  • Privacy Policy
  • Cancellation & Refund
  • Terms & Conditions
Copyright © 2022 Coverfox.com. All Rights Reserved