Term Insurance 275 views September 24, 2021

Buying a term insurance plan, which offers financial protection to your family in case of your unfortunate death, at a young age comes with the benefits of low premiums. But some tend to ignore the same and take the plan much later only to increase their premium amount. And some get TOO late and are denied this plan, mounting financial concerns for their families in their absence. Yes, insurance companies set the minimum and maximum age criteria for buying term insurance plans. So, checking such criteria is as important as going through the sum assured and premiums of these plans. Doing due diligence this way will only help you buy the right plan at the right time. Let’s learn more about it in this article.

Term Insurance

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So, What is the Age Criteria for a Term Insurance Plan?

Insurance companies set the minimum and maximum age for buying a term insurance plan based on their policies and underwriting norms. However, looking at the current market, one needs to be a minimum of 18 and a maximum of 65 years when buying a plan. Insurers also set the maximum age at the time of policy maturity. What that does is help you and the insurer decide your policy term. The RIGHT policy term holds the key besides impressive sum assured and affordable premium. So, checking the age criteria holistically across plans is THE due diligence for you to do. We can help you in this by showcasing the age criteria for some of the best term plans. Let’s read the same below.

Term Insurance PlansMinimum Age at EntryMaximum Age Allowed at EntryMaximum Age Allowed at MaturityMaximum Policy Term
HDFC Life Click2 Protect Life18 Years65 Years85 Years85-Age at Entry
ICICI Pru iProtect Smart Term Plan18 Years 65 Years for Single and Regular Variants

55 Years for Limited Pay Variant
Single Pay Variant - 75 YearsSingle Pay - 20 Years

Regular Pay - 85 Years - Age at Entry

Limited Pay - 85 Years - Age at Entry
Max Life Smart Term Plan18 YearsRegular Pay Variant - 60 Years

Pay Till 60 Variant - 44 Years
Base Death Benefit - 85 Years

Accelerated Critical Illness Benefit Option - 75 Years

Accident Cover Option - 85 Years
Base Death Benefit - 50 Years

Accelerated Critical Illness Benefit Option - 50 Years

Accident Cover Option - 50 Years
Aditya Birla Life Shield Plan18 YearsPlan Option 1 - 65 Years

Plan Option 2- 50 Years
85 Years55 Years
Aegon Life iTerm Plan (Life Protect Option)18 Years65 Years100 Years82 Years
Aviva Jana Suraksha18 Years45 Years50 or 55 Years5 or 10 Years

Important Notes

  • Single Pay Plans come with a one-time lump sum premium payment at policy inception
  • For Regular Pay Plans, policyholders need to pay the premium throughout the policy term
  • In Limited Pay Plans, the premium payment term remains less than the policy term. But the cover will last till the policy term.
  • ‘Age at Entry’ refers to the time of buying the policy

Conclusion

You must have got an idea of the right time for buying the policy by knowing the age criteria shown above against different term insurance plans. The age of the policyholder is one of the important determinants of term insurance premiums. The sooner you buy, the lower will be the premium and vice versa. Further, with the cap on maturity age, buying the policy much later might decrease your policy term substantially, thereby causing concerns for your dependents should you die after outliving a shorter term. All that calls for an early buy of term insurance.

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