Term Insurance Age Limit: Minimum & Maximum Entry Age Explained

What is the term insurance age limit in India?

When it comes to the term insurance age limit, most insurers allow entry between 18 and 65 years, with coverage lasting until 75-99 years, depending on the type of plan. Your age directly affects your premium, coverage options, and approval chances. The younger you are, the more affordable and straightforward it is to get insured.

Introduction

Term insurance is one of the simplest and most effective ways to safeguard your family financially. But a common question many people have is: What is the age limit for buying a plan? This guide explains the age limits insurers follow and how they influence premiums, coverage, and approval likelihood, so you can determine the best time to purchase a term plan.

Want personalised help choosing the best term plan for your age and income? Book a free call with Ditto’s experts.

What Is The Minimum and Maximum Age for Buying Term Insurance?

While exact limits vary across insurers, common industry ranges include:

• Minimum Entry Age: Usually 18 years.
• Maximum Entry Age: Typically 65 years
• Maximum Maturity Age: This can range from 75 to 80 years to 99 years, depending on the type of plan. 

This means that even if you buy a plan at 60, you may stay covered until 80 or older (if the insurer allows).

Ditto’s Take: We recommend choosing a term plan that covers you at least until your retirement or until your financial dependents no longer rely on you. For example, a plan that lasts until your youngest child turns 20-25 years old is usually a smart choice.

Did You Know? 

The IRDAI does not have specific guidelines on education or age criteria for availing term insurance. Life insurers set their own rules based on their board-approved underwriting policies.

Premium Comparison of Different Age Groups

Here’s a quick look at average premiums for a ₹1 crore cover for non-smoking males with no pre-existing diseases, covered up to age 70:

As you can see, premiums climb steeply as you age. So while there’s no “perfect” age to buy term insurance, at Ditto, we always recommend getting one as early as possible.

Let’s consider a real-life example. 

Someone buying a ₹1 crore cover at the age of 27 may have to pay approximately ₹11,000 per year. The total cost over 40 years amounts to approximately ₹4.4 lakhs. Now, the same person buying the same plan at age 38 would have to pay ₹21,000 per year. What is the total cost if they get coverage until 67? Approximately ₹6 lakhs. 

How Does Age Affect Term Insurance?

01

Higher age = higher premiums

Insurers consider older individuals to have a higher probability of health issues.

02

Lower coverage options

Some insurers restrict high coverage amounts for older applicants.

03

Limited Access to Riders

Some riders, such as the Critical Illness Rider, Waiver of Premium Rider, etc, may get quite expensive as you grow older or unavailable if health issues arise.

04

More medical checks

Applicants above a certain age may need extensive medical tests.

Ditto’s Take: We don’t recommend buying life insurance policies after the age of 60-65. Most of your primary responsibilities have already been fulfilled by this time. Even if you do apply for a policy, stricter underwriting will be in place, and you may have to face exorbitant premiums.

Why Age Matters in Term Insurance Policies?

• Premium Affordability: Younger buyers enjoy and lock in low and stable premiums for the entire duration. 
• Policy flexibility: Younger applicants can choose long tenures, even up to age 99-100 (for whole life policies), depending on the insurer. 
• Ease of Approval: Fewer to no medical complications mean smoother approval. 

From an insurer’s point of view, age is one of the most important factors in evaluating risk. As age increases, so does the probability of illness, critical conditions, and early claims.

How to Pick The Best Term Insurance Plan for Your Age?

Choosing the right term insurance plan depends heavily on your life stage, financial responsibilities, and long-term goals. Here are the key factors to evaluate:

1) Choose the Right Cover Amount

Your sum assured should be sufficient to protect your family’s lifestyle and future goals. While deciding the cover amount, factor in:

• Current income 
• Existing financial liabilities such as home loans, education loans, or any debts
• Family’s monthly expenses and long-term responsibilities (children’s education, medical needs, etc.)
• Future financial goals and inflation, so that your coverage can remain relevant even 20-30 years from now. 

2) Pick the Right Policy Duration

Your policy term should ideally last until:

• Your retirement age or the point when major financial obligations are expected to be over.

For most individuals, choosing a duration that covers them till 60-70 years strikes a good balance between affordability and long-term protection.

3) Evaluate In-built Features and Optional Riders

Different insurers offer different built-in benefits and rider options. Look for optional riders such as:

• Critical illness rider
• Accidental Total and Permanent Disability benefit
• Waiver of premium (in case of disability or critical illness)

These can significantly enhance the usefulness of your policy without drastically increasing the premium.

In-built Features to Consider: Terminal Illness Cover, Instant Payout on Claim Intimation, Auto Cover Continuance, Zero Cost Benefit, Health Management Services, Life Stage Benefits

4) Compare Premiums Across Insurers

Premiums vary widely, even for the same cover amount and duration. When comparing:

• Ensure you’re comparing similar features and riders
• Remember: cheapest isn’t always the best. Always check the value and not just the price.

Select a plan that strikes a balance between affordability and robust features, paired with a reliable insurer.

5) Assess Insurer’s Operational Metrics

A term plan is only as good as the insurer’s claims experience. Pay attention to the company’s:

• Claim Settlement Ratio
• Amount Settlement Ratio
• Complaint Volume 
• Solvency Ratio

These metrics help ensure your family won’t face hurdles during claim settlement.

By assessing cover amount, duration, riders, premiums, and operational performance, you can confidently choose a term plan that truly protects your family.

Why Should You Buy Term Insurance Early?

• Low premiums
• Longer coverage options
• Higher chances of approval
• Better financial planning stability

A term plan bought at 25 may cost only a fraction of what it would at 40. (As we’ve shown in a premium comparison example above.)

Note: You can lock in your term insurance premiums when you buy a policy. This means that premiums remain constant throughout the policy term (except when discounts are no longer applicable). This happens because plans offer certain discounts only for the first year, which are not applicable from the second year onwards; hence, from the second year, premiums become constant for the remaining term.

Why Choose Ditto for Term Insurance?

At Ditto, we’ve assisted over 8,00,000 customers with choosing the right insurance policy. Why customers like Rahul below love us:

• No-Spam & No Salesmen
• Rated 4.9/5 on Google Reviews by 15,000+ happy customers
• Backed by Zerodha
• 100% Free Consultation

You can book a FREE consultation. Slots are running out, so make sure you book a free call now!

Conclusion 

Term insurance is most effective when bought early, as you get lower premiums, more extended coverage, and overall better value. While insurers generally allow entry up to 65 years, waiting that long can mean higher costs and fewer options.

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