Term Insurance Eligibility Criteria in India: A Complete Guide

Most insurance companies offer term plans to individuals between 18 and 65. So, if you fall within this age group, you can easily purchase a term insurance policy. However, some insurers also allow senior citizens over 65 to buy term plans. For them, the maximum age to which coverage is provided could be 70-75 or even 99 in some instances.

For example, the ACKO Life Flexi Term Plan is one such plan in the market that provides coverage until age 70. 

• Minimum age entry: 18 years
• Maximum age entry: 65 years.

Term plans are available to salaried, self-employed, or even unemployed people. However, you need to have a steady source of income to pay the premiums on time. The policy can lapse if you have difficulty paying premiums due to financial constraints.

When applying for a term insurance policy, the insurance company will ask you to submit previous medical reports and undergo specific medical tests. This is done to accurately assess your health status and determine the extent of risk you pose. Based on your medical reports, insurers calculate the term insurance premiums to be charged. 

Lifestyle habits play a significant role in determining eligibility for term insurance in India. Key factors include smoking, alcohol consumption, and participation in hazardous activities. 

• Smokers are generally considered high-risk due to the well-documented health risks associated with smoking, leading to higher premiums or limited coverage options. 
• Maintaining a healthy lifestyle can positively influence term insurance eligibility, potentially lowering premiums. 
• It's crucial to provide accurate information about lifestyle habits during the application process to avoid complications such as claim denials in the future.

The applicant's occupation is another critical factor in determining term insurance eligibility and premium rates. Some occupations inherently involve higher risks, affecting the terms of coverage. High-risk jobs, such as those of firefighters, pilots, construction workers, and miners, expose individuals to dangerous environments, increasing the likelihood of injury or death. Consequently, insurers might charge higher premiums or impose stricter coverage conditions for these occupations. 

Riders are benefits that can be added to a term insurance policy to enhance coverage. Everyday riders include critical illness coverage, accidental death benefits, disability riders, and waivers of premiums. Riders are typically added at the beginning of the policy. However, many insurers now allow riders to be added on policy anniversaries, providing flexibility in policy customisation. Adding a rider usually involves paying an additional premium, calculated based on the rider's specific risk and the insured's profile. 

Gender can influence term insurance eligibility and premium rates due to differences in life expectancy and health risk profiles between men and women. Generally, women tend to have a higher life expectancy than men, leading to lower premium rates for women as they represent a lower risk to insurers. Gender-specific health risks are also considered; for instance, women might have lower premiums for specific health conditions but may face higher rates for others.

Eligibility depends on age, income, medical tests, lifestyle habits, and occupation, ensuring smooth coverage and benefit claims.

High-risk professions may result in higher premiums or stricter coverage conditions due to an increased likelihood of injury or death.

It is ideal for those with financial dependents, young adults, individuals with significant loans, and self-employed persons, ensuring financial security at affordable rates. 

You must be at least 18 to buy this term plan from ACKO. The maximum age you can buy this policy is 65, and the coverage continues until 70.