What Is The Maximum Age Limit To Buy Cover Under Term Insurance?
Updated On Jul 05, 2021
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Financial security is not a key source of happiness for many people. It cannot, however, be completely ignored. We all wish our loved ones to live long and prospering lives. However, many of us overlook the need of creating a financial nest for those dependent on us that will protect them in the event that we are unable to provide for them. A term insurance policy is a type of life insurance that provides financial security to your loved ones in the case of your death. Term insurance, like every other type of insurance, has a minimum and maximum age for purchase. However, there are a few common misunderstandings about the term insurance age restriction. In this article, you can read about the age restrictions on purchasing term insurance as well as the maximum age for being eligible to buy a term insurance policy.
Age Limits On Purchasing Term Insurance
Life is uncertain and human life expectancy has come down to 70 years. Term insurance is a great way to keep your family and dependents financially safe. However, many insurance companies impose a certain age limit to purchase term insurance policies.
Term insurance can be purchased by an individual who is above 18 and below 65 years. So, even if you're 65 years old, you can get a policy that covers you until you're 99 years of age. It is critical to examine long-term plans at various phases of life. In fact, as people become older, their financial goals change, necessitating changes in their insurance coverage. Furthermore, purchasing a term plan early in life is in your best interests.
Why Do Senior Citizens Need Term Insurance?
Most people believe that getting term insurance for older adults or senior citizens is unnecessary. This may be true to some extent because they have already achieved or passed the retirement age. However, hardly everyone over the age of 60 retires in perfect financial health. The following are the situations that necessitate purchasing a term insurance even when you are above 50-
1. Dependent Children/Family
In India, unemployment is relatively common, and many young people, even those in their 30s, rely on their parents for their daily needs. Some children are still acquiring schooling or training to get a career, even when their parents are in their 60s. The parents are responsible for all of their children's schooling and daily costs. In this circumstance, term insurance protects their children in the event of their untimely death.
2. Repaying Debts And Loans
It's not a surprise to see people working long after they should have retired to pay off obligations such as a home loan, a personal loan, or a student loan for their children. When a family's breadwinner dies, the weight of repaying the debts rests on the shoulders of others who were financially dependent. A term life insurance policy provides the family with much-needed financial security, allowing them to pay off debts and responsibilities and live a comfortable life.
3. Financial Support For Your Spouse
You might have shared the highs and lows of life with your spouse, but life is unpredictable. Your spouse will be responsible for handling the finances. Without financial protection, it will be difficult for your loved ones to handle their expenses. Term insurance is the least you can do to protect your family in your absence, whether you are in your 20s or your 60s.
Take Away
Investing in term insurance is one of the best ways to keep your family safe. Even if you are well over 60 years old, don't let the hefty premium cost deter you from acquiring term insurance cover. The additional money you put aside now will go a long way toward providing for your loved ones when you're away.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.
