Everyone wants to secure the future of his/her family. One of the best ways to do that is to buy a life insurance plan for your family.
A life insurance policy provides you with a life coverage for your family for a pre-determined period for a certain amount of premium.
In the event of the death of the policyholder, your nominees will receive the maturity amount. The premium charged for a life insurance plan is quite less.
The amount of premium to be paid depends on the age of the individual. It is generally said that the younger the age, the lesser is the premium and vice-versa. The life insurance claim process also makes an impact in this regard.
So, let’s have a look at the different ages when you can buy a life insurance plan and its impact:
1. Ages 20-29 – At this age, saving money is important to you.
- If your parents have taken a loan for you, a life insurance plan might help them in repaying the loan in case of your untimely demise.
- If you are about to get married, a life insurance plan in addition to your regular income can prove a boon in running the household.
- At this age, everyone is good in health as compared to the other stages of life. It implies that there is less risk attached to you as an individual. Lesser risk means lesser premium which is again an advantage for you. If you take life cover at this age, you can get your 30’s, 40’s and 50’s secured comfortably.
2. Ages 30-39 – 30’s is the prime time in your life where you are in the money-making stage of your life.
- You need insurance in case you have a mortgage, and you do not want your life partner to be burdened with its payments.
- You need a life cover at this stage if you have children who are dependent on you. Taking a life insurance plan at this stage can help you to provide your child a safe life cover in case you die unexpectedly.
- You should buy a life insurance policy at this stage in case you have plans for extending your family. It will help you in saving a considerable amount of premium as the rates are low at this stage.
3. Ages 40-49 – It is generally said that buying a life insurance plan at this stage is quite expensive. But that is not so. It all depends on your requirements. If you are looking to secure your old age, this is the right age to buy a life insurance policy.
4. Ages 50-59 – This is the right age to buy a life cover if you have started a new business or if you have taken a loan for your children for their higher education. It will help you in the repayment of your loan and also helps in life insurance claim settlement later.
5. Age 60-69 – At this stage, you will get a life coverage for 25 years instead of 30 years. You can buy a life insurance plan and use it for estate planning or inheritance purposes. But the amount of premium may increase as with the increase in age, the risk also increases.
6. Ages 70-79 – You can buy a life insurance plan at this age as well, but you will get a life coverage of only 10 years at this stage. You can use it as per your requirements.
The Bottom Line
Any age is the right age to buy a life insurance plan if you need one.
However, at a younger age, life insurance policies are more economical with a lesser amount of premium and greater life coverage than at the later stages of life.
Hence, you should buy a life insurance plan when you are young and healthy, i.e., between the ages of 20 and 39 as you are associated with less risk at this stage.
On another note, it is better that you understand your requirements of life insurance and then buy one.