How to Check the Impact of Age on Term Plan Premium?

Term insurance plan, being an easy-to-understand life insurance product, is there for all. It can help you protect the financial future of your family, provided you compare and evaluate term insurance quotes based on your specific needs. One thing you might have heard about term plans often is that you can buy them at any age. Still, a common question that people ask is about the right age to buy a term insurance policy. It is because purchasing the plan at a specific age has a distinct meaning for you based on the premium payable, lifestyle followed, and financial goals.

Why Does Term Plan Premiums Vary with Age?

Age is a crucial factor that determines the term plan premium. Use an online term plan calculator, and you can get a glimpse of how the premium varies as per age. The reason behind this is quite easy to understand –

Young people tend to be at the lesser risk of contracting critical health issues or lifestyle diseases that occur due to sedentary habits. Therefore, the insurance companies are willing to offer you a term plan at a lower premium, and with maximum benefits.

Since buying a term plan is no less than an essential part of growing up, the best time to get one is as early as possible. It will work as the much-requisite protection that your family will need to tackle various ups and downs in life after you.

Best Way to Check How Premium Varies with Age

If you only had the experience of buying insurance policies from a local agent, you would think of calling him to compare term plan premiums at different ages. However, in the contemporary age of the Internet, you can easily get rid of such dependence by using a term plan calculator online. Most of the renowned insurance companies now offer a term plan premium calculator on their web portals to facilitate quick and easy premium comparison.

Also, online term plan calculators are quite easy to use. Fill your details, choose the sum assured, and payment tenure to get a premium quote instantly. You can gauge the impact of age on premium by changing the value in the ‘age’ field in the calculator.

Why Should You Buy Term Insurance at a Young Age?

1. Substantial Cover at a Lower Premium

Mathematically, the term plan premium is directly proportional to the insured’s age. All the term plan calculators are based on this fact. With an increase in your age, the premium payable will also increase. Along side, you cannot deny the effect of inflation over the years. A term plan from a specific insurance company may not be available to you at the same premium five or ten years down the line, based on changing laws and economic reforms.

Another aspect you should consider is about the financial responsibilities that keep on growing as you age. You will have to provide for your parents, spouse, and kids, the financial implication of which may not leave you ready to buy a term plan. Therefore, buying a term plan at a young age after considering various facets using a term plan premium calculator is highly advantageous. You can secure your family’s future at a price you can easily afford.

2. Lower Risk of Health Issues

In most cases, the risk of suffering from severe health problems is higher when an individual reaches an old age, which could lead to death. On the other hand, young individuals tend to live a healthy life, free from health issues. That is why your current health condition also plays a crucial part in determining the term plan premium. Lower age implies less vulnerability to critical illnesses, which drops the premium considerably.

If you look at the process of buying a term plan online, it starts with using a term plan calculator, selecting the sum assured and tenure, and then followed by a medical examination of the applicant. The insurers first make sure that you are healthy at a young age before offering you a term plan.

3. Financial Security for Dependents

Financial Security for Dependents

Young age is the most crucial time of life when most people start their career or profession. At such an age, you have fewer responsibilities and woes to worry about. If you are the only earning individual, there is a lot to think about and manage, in terms of finances. If something happens to you at such an age, a thunder of financial loads will come upon your loved ones. You can prevent that from happening with a suitable term plan chosen after careful consideration of a term plan calculator. It will make sure that your dependents can live their lives without financial worries. They will get the sum assured based on the inclusion terms of the plan you have bought.

Overall, term plans allow you to opt for a significant coverage at low premium payable so that you can avoid the uncomfortable feeling of not having a life cover. These comprehensive term insurance also offer year-on-year tax-saving benefits on the premium payable. Thus, make sure you compare different plan benefits based on your specific needs, before finalising a term plan coverage.