When’s the best time to buy term insurance? The short answer: today.
The younger and healthier you are, the cheaper your premiums - and the longer you stay protected.
Delaying by even 5 years can increase your premium by 30-50% for the same coverage.
This guide shows how term insurance cost changes with age, what factors influence it, and why buying
early helps you lock in low rates and lifelong security.
Why Age Matters In Term Insurance
- Premiums Increase Every Year: Each birthday adds risk - insurers price accordingly.
- Medical Risks Grow Over Time: Older buyers undergo stricter underwriting.
- Coverage Limits Reduce: Insurers may cap maximum coverage after 45+.
- More Riders Available When Younger: CI, ADB, WOP easier to add under 40.
- Longer Coverage Periods: Younger buyers can opt for 30-40 year terms at low cost.
How Premiums Change With Age
| Age |
Coverage |
Policy Term |
Annual Premium (₹) |
% Increase vs Age 25 |
| 25 |
₹1 Cr |
35 yrs |
₹8,400 |
- |
| 30 |
₹1 Cr |
30 yrs |
₹9,800 |
+17% |
| 35 |
₹1 Cr |
25 yrs |
₹12,000 |
+43% |
| 40 |
₹1 Cr |
20 yrs |
₹15,200 |
+81% |
| 45 |
₹1 Cr |
15 yrs |
₹18,800 |
+124% |
| 50 |
₹1 Cr |
10 yrs |
₹23,500 |
+180% |
(Based on average premiums for non-smokers.)
Why Buying Early Makes Sense
- Lock low premiums for decades: Once you buy, rates stay fixed for the full term.
- Long-term coverage: Get insured till 60-70 at minimal cost.
- Simpler approval: Fewer medical tests and exclusions when younger.
- Wider options: Choose from multiple insurers and rider combos.
- Higher eligibility: Young professionals get up to ₹2-5 crore cover easily.
Cost Of Delay - Real Example
Ravi, 28, buys ₹1 Cr term cover for ₹9,000/year.
If he waits till 35, the same cover costs
₹12,000/year.
Over 25 years, that’s an extra ₹75,000 paid - with 7 years less
protection.
Lesson: Each
year of delay = higher cost + shorter safety net.
How Your Life Stage Affects Term Insurance Needs
| Life Stage |
Why It’s Critical |
Suggested Coverage |
| Early Career (25-30) |
Lowest rates, fewer liabilities |
₹1-₹2 Cr basic cover |
| Marriage (30-40) |
Dependents & loans begin |
₹1-₹3 Cr + Joint Term option |
| Parenthood (35-45) |
Education + EMIs peak |
₹2-₹5 Cr cover |
| Pre-Retirement (45-55) |
Protect legacy, pay off debts |
₹1-₹2 Cr short-term plan |
| Retired (55+) |
Limited need, estate planning |
Whole-life or legacy cover |
Local Insights
- Avg. buyer age for first term plan: 28 yrs
- % of 25-35 buyers opting ₹1Cr+ cover: 24%
- Most popular insurer in Telangana: HDFC Life
- Avg. age-based premium gap (25 vs 40): ₹6,800
Tips To Get Best Value
- Buy early - even if income is modest.
- Add riders like CI and ADB while young.
- Choose long-term policy (30–40 years).
- Don’t cancel old policy if replacing - overlap briefly.
- Reassess coverage after marriage or child birth.
Tax Benefits
- Section 80C: Deduction up to ₹1.5 lakh/year.
- Section 10(10D): Payouts tax-free for nominees.
- Section 80D: CI Rider deductions (₹25k-₹50k).
Common Myths About Buying Age
| Myth |
Reality |
| “I’m young, I don’t need insurance.” |
That’s exactly why it’s cheapest now. |
| “I’ll buy when I get married.” |
Premiums rise by 30-50% by then. |
| “Company policy is enough.” |
Ends when you switch jobs. |
| “Health test not needed.” |
Earlier = fewer tests, faster approval. |
| “I’ll invest instead.” |
Term cover = protection, not investment - do both. |
FAQs
What’s the best age to buy term insurance?
Ideally between 25-35 years - you get the best rates and longest cover.
Why is term plan cheaper when young?
Younger buyers have lower health risk and longer premium payment potential.
Can I increase cover later?
Yes, many plans offer life-stage top-ups after marriage or childbirth.
Do premiums remain same forever?
Yes, once fixed, premiums don’t increase through the term.
Can I buy multiple term plans at different ages?
Yes, allowed - each policy adds protection as income grows.
Is there an age limit to buy?
Usually up to 65 years (some up to 70).
Can students or new employees buy term insurance?
Yes, as long as you have income or financial dependents.
Do older buyers need more tests?
Yes, insurers require detailed medicals above age 40.
Does quitting smoking reduce premium later?
Yes, after 12-24 months tobacco-free, you can reclassify as non-smoker.
Is there a difference for men and women?
Yes, women pay 5-10% less premium for same cover.
Can I buy at 50 or 60 years?
Yes, but coverage and term options are limited.
Which term length should I choose at 30?
30-40 years - covers your working life till retirement.
Can I change plan later?
You can buy new policy anytime; no penalty for switching.
Is early purchase required for tax savings?
Not mandatory, but gives annual deduction under 80C.
What if I buy too early (age 22-23)?
Still beneficial - coverage starts immediately and premiums stay low.
Customer Reviews
- “Started early at 25 - my premium is half my friend’s!” - Rohit Verma,
Delhi
- “Didn’t realize delay costs so much - this article convinced me.” - Priya Nair,
Kochi
- “Got ₹1 Cr cover for under ₹800/month.” - Karan Bedi, Mumbai
- “Perfect breakdown - buying early just makes sense.” - Suresh Mehta,
Pune
- “Saved ₹40k over lifetime by acting fast.” - Ananya Sharma, Hyderabad
- “PolicyBachat calculator showed live premium difference by age.” - Neha Iyer,
Bengaluru
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