What Is the Right Age to Buy Life Insurance?

A couple of years later, you'll be building a life, and the thought of critical illness or sudden death is likely to cross your mind. What would you do then? That's why the sooner you get your life insurance, the easier it is for you. There is no perfect age for buying life insurance India; all you need to know is the right time. Buying life insurance at the right time, at the right age, can make all the difference. 

What is the Minimum and Maximum Age to Buy Life Insurance?

The minimum age limit for buying a life insurance policy is 18 years. However, the maximum age to buy the policy may vary significantly depending on your provider. On average, 60 years is considered the maximum age for buying life insurance. 

What is the Best Age to Buy Life Insurance?

If you're under the impression that you should buy insurance around the time you settle in life, for example, getting married, you may be wrong. Ideally, you should start proper financial planning and buy a life insurance India policy as soon as you start earning. It is a responsibility that you must take up if you're the sole breadwinner of your family. 

Buying life insurance in your early 20s can be an ideal choice, considering the benefits that come with it. However, other age groups also receive certain benefits through the life insurance if it is their first time purchasing the insurance. When you're younger, the premiums are lower. Therefore, you can get sufficient coverage. At a younger age, you will receive a lower premium for the respective duration. 

Why Buy Life Insurance at a Younger Age?

The earlier you buy life insurance, the more beneficial it is, considering the variety of perks it comes with. Some of the reasons why a lot of people prefer buying life insurance, even of a smaller amount, as soon as they start earning are as follows:

1. Lower premiums: You'll probably be shocked to know how vital your age is when you buy life insurance. If you're young, the premium is going to be lower. As your age increases, the risk of health issues increases, which means the insurer will have to impose higher premiums. So, if you buy sooner, you'll save yourself from burning a hole in your pocket by paying premiums. 
   
   Pro tip: Once your life insurance policy starts, your premiums are locked and it doesn’t rise. So, the earlier you take, the more beneficial it is in the long run.
    
2. Locking in good health: Young individuals have good health and are at a lower risk of diseases. Now, if you're in good health, your insurer will calculate the premiums you have to pay based on your health condition. 
   
   Pro tip: You get better coverage at more favourable rates with better health conditions at a younger age. So, the earlier you opt for a higher coverage, the easier it is for you to get the policy underwritten, which increases your chances of opting for higher life insurance coverage.
    
3. Lesser liabilities: At a younger age, you have fewer liabilities, which means you can pay more for your life insurance policy. As you start a family or grow in life, you have more responsibilities, which means you may not be able to pay more towards your insurance. Opting for life insurance at an early age also fosters financial discipline. 
   
   Pro tip: Your disposable income would be higher when you have fewer responsibilities. Hence it is easier for you to pay comparatively higher premiums even if your income is low, as compared to higher income at a later age.

But, what if you don't buy the insurance early and are in your middle age or older age? Are there no benefits for such individuals? Yes, there are. You are never too late to make a stable financial decision. 

Perks of Buying Life Insurance (Middle-aged and Old-age)

You've not missed the train, even if you're slightly late to buy life insurance. Here are some of the perks of purchasing life insurance a little later in life:

1. Middle-ages (mid-30s to 40s): For people in their mid-30s or 40s, life insurance is like a safety net. You can get tax deduction benefits under Section 80C of the Income Tax Act of 1961. 
    
2. Older individuals (50s-60s): Older adults can enjoy the health benefits. In case of sudden death, the beneficiary will get the amount, ensuring financial protection. Moreover, life insurance provides no financial burden in case of death.