Entry Age for Term Insurance

Term Insurance (TI) can be understood as an agreement between the insurance company and the policyholder that provides financial coverage to the insured for a specified period, i.e., a specified term (for example, 10, 20, or 30 years). If the policyholder faces an untimely death during the specified term, the insurance company will pay a death benefit according to the policy terms. Term Insurance policies are often referred to as the purest form of life insurance plans and have some age limits. 

The entry age for Term Insurance plans is 18 years, as the age limit to get Term Insurance generally ranges from 18 to 65 years. 

It is a misconception that you cannot have Term Insurance after 65 years of age. For example, if a person buys a Term Plan of 30 years at the age of 65, this will act as a life cover plan for him because it will be valid till he is 95 years old. This misconception existed because earlier it was difficult for senior citizens (people who are above 60 years of age) to buy a Term Plan.

However, it is important to note that the term benefits, coverage, and premium differ according to the age of the insurer at the time of buying. This is because of financial goals and benefit requirements from the policy change with age.

Different insurance companies offer different types of Term Insurance plans. Insurers first calculate your premium based on factors, including the term you select, your age, overall health, and life expectancy. Hence, a medical history report will be required while buying a Term insurance plan. Here, the premium and the time period are usually fixed. In case of an unfortunate event during the insured term, a death benefit is paid to the beneficiaries.

There are options to renew your term insurance or extend the period, but the premium you have to pay will majorly change depending on your age at the time of renewal. Therefore, renewal premiums are generally higher. Moreover, many Term insurance plans are convertible, i.e., they can be converted to Permanent Life Policy plans. 

It is better to invest in Term Insurance at an early age as the premium increases with your age. This is because with increasing age, your life expectancy reduces and you might suffer from some common medical conditions like thyroid and diabetes. This makes it difficult to get a Term insurance plan as you grow older. For example, the premium of a Term Insurance plan for Arun, who is 29 years old, is Rs. 899 per month, but for his brother Tarun, who is 39 years old, it is Rs. 1,899. 

There are different types of term insurance plans in India. These plans have unique features and benefits, such as Tax benefits under Section 80C of the Income Tax Act of 1961 under the old tax regime. It is important to understand each one in order to choose the right term plan based on your needs. 

Level Term Plans:

Increasing Term Insurance:

Decreasing Term Insurance:

Term Insurance with Return of Premium:

Convertible Term Plans:

Consider these age-specific term insurance tips when choosing a plan.

The ACKO Life Flexi Term Plan is a pure term plan from ACKO, known for its unmatched flexibility and affordability. With the ACKO app, you can make easy and convenient purchases, renewals, and even file claims. It is a unique and reliable option for people who want an extensive and flexible term insurance plan. 

The entry age is 18, and the maximum entry age is 65. Coverage is offered until the age of 70. Please note that details may change, so we recommend checking the latest policy documents or contacting ACKO for updates. 

Riders are optional benefits that can be added to a basic life insurance policy. ACKO provides three unique riders: 

1. ACKO Life Accidental Death Benefit Rider: 

One of the most affordable riders that provides an additional amount of money if the policyholder’s death is caused by an accident.

2. ACKO Life Accidental Total Permanent Disability Benefit Rider: 

If the policyholder becomes permanently unable to work due to a major accident, this Accidental Total Permanent Disability (ATPD) rider will provide an additional amount to cover day-to-day expenses. Additionally, it will waive all future premiums of the ACKO Life Flexi Term Plan.

3. ACKO Life Critical Illness Benefit Rider: 

If the policyholder gets seriously ill, this unique rider provides a predetermined amount of money. It will also waive all future premium payments that are due for the ACKO Life Flexi Term Plan.

List of Covered Critical Illnesses 

There are 8 cases of death that are not covered by Term Insurance. 

Disclaimer: The content on this page is generic and shared only for informational and explanatory purposes. It is based on industry experience and several secondary sources on the internet, and is subject to changes.