How to Buy Term Insurance Plan as per Your Age?

Written by : Knowledge Centre Team

2025-11-14

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Earning a living is not easy, it involves a lot of hard work and persistence. You do all that hard work to give your family a better future. However, as the primary earning member of the family, the safety of this future is also your responsibility.

What will happen if something unfortunate happens and you lose your life? How will your family cope with the loss financially? Life being so uncertain, you need to be prepared for these situations.

A term plan can help make your family’s future secure.

Why Buying a Term Plan is a Necessity?

A term plan is a type of life insurance that provides you coverage for a specific period or a ‘term’. A term plan can provide you with a large cover at a very affordable cost.

Safeguards Financial Future of Family: The main objective of a term plan is to provide your family financial support after your death. If you die during the term plan’s duration then your family will receive the agreed-upon sum assured.
Affordable: The term plan is the most affordable of all the life insurance variants. You can buy iSelect Smart360 Term Plan from Canara HSBC Life Insurance.
Flexible Tenure: You can take a term plan for different durations as you like. Term plans come for a duration as low as 10 years and some even provide you coverage for 100 years.
Peace of Mind: A term plan will provide you with life coverage for the duration chosen by you. This will give you peace of mind as now you know that your family is taken care of even if you are not present. Thus you will be able to worry less and focus more on your work.

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How your Age Impacts Term Insurance Plan?

If you are over the age of 18 and have a regular income, you can apply for term insurance. You can buy a term plan at any age group between 18-60. In general, the earlier you will buy your term insurance, the better it will be for you. Buying a term plan at a young age has many benefits:

Pay Lower Premiums: The premiums of term insurance increase with age. This is because, at a young age, you are less likely to die and are healthier. Thus, at this time you are less risk-prone as per the insurance company. This low risk leads to lower premiums.
Lower Responsibilities: At a younger age, you are likely to have fewer responsibilities than you will have a few years down the road. Thus you can easily set aside an amount towards purchasing the term insurance.
Builds a Habit of Saving: The best and most affordable way to avail of the term life insurance policy is with regular pay premiums. This helps bring discipline and will build a habit of savings that is very beneficial at a young age.

How to Choose a Term Plan as per your Age?

Based on your age and life stage you need suitable features and benefits in your term plan. Thus, your term insurance choice as per your age may change as given below:

1. Term Insurance in your 20s

You must be wondering, who needs a term plan in their 20s? This is the time you are done with your studies and look to make a career and earn money.

In your 20s you will have fewer responsibilities and dependents but you can have liabilities in the form of education loans.

To make sure that the burden of paying the loan does not fall on your parents if something were to happen to you, a term plan is necessary. Even if you do not have an education loan to pay off, a term plan is still attractive as it will help your parents stay financially stable at their old age.

In your 20s you could look for a term plan with cover ranging between 30-50 Lakhs, which is enough to cover liabilities or other emergencies.

2. Term Insurance in your 30s

When you reach your 30s, you are more or less settled in your career, and this age witness high growth in salary. But with a higher salary, this stage is also marked by higher responsibilities. This is the age bracket where you are more likely to marry and start your family.

If you purchase a term plan in this age bracket, you should choose a sum assured of at least 10 times your annual income. If you already have a term cover try and increase the sum assured to reach at least 10 times your current annual income.

This amount will be able to make sure your family stays protected financially.

3. Term Insurance in your 40s

At this stage, both your career and family are stable. Now you start thinking about your retirement. Also, this is the stage your liabilities can be higher, especially with goals like buying a house, fulfilling education, etc. It is still not too late to buy a Term Insurance plan, but the premiums can be higher.

Also, since in this stage your liabilities are higher and there are still milestones left, you should buy a term plan of high coverage. The coverage should be at least Rs 1 Cr.

4. Term Insurance in your 50s

The premiums that start rising in your 40s, increase further by the time you reach the age of 50. This is because at 50 you are more prone to health issues and you have high chances of dying. Also at this age, you approach the maximum age at which you can purchase a term plan.

If you have a debt to repay even in your 50s and do not want your family to be burdened, a term plan is important.

iSelect Smart360 Term Plan – A Term Plan for All Ages

Canara HSBC Life Insurance’s iSelect Smart360 Term Plan is one of the most versatile term plans in India. It offers you a host of features that make this plan suitable for every age group listed above.

Here are some benefits this plan offers:

1. Regular Income Pay-out

In the iSelect Smart360 Term Plan, you can choose to create an income stream for your family after your demise. While this option keeps the death benefit tax-free for the family it also helps them:

Take care of their regular expenses
Avoid investment management challenges
Avoid bad investment risks

The regular income pay-out feature works as a standalone feature as well as with the lump sum pay-out.

2. Increasing Cover Option

iSelect Smart360 Term Plan offers you the option to increase your cover without changing the policy. Thus you can take the policy at a young age and take advantage of lower premiums. You can increase your life cover within the policy on critical life events such as marriage, childbirth or home purchase.

reasons to buy term plan with increasing cover option

3. Hold Term Insurance Jointly with Spouse

You have the option to include your spouse with this term plan. Thus you and your wife can be covered in a single plan. Both of you will have a separate sum assured. At the time of any of the partner's death, the share will be given to the partner who is alive.

Have a Term Plan at Every Age?

More than the question of which term plan, it is important that you have a term life cover at every stage in your life. One exception you can have is, perhaps, after you are safely retired and your family is financially independent.

But before that, regardless of your age and health condition, give a life cover to your family.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.