Reasons Why Its Never Late To Buy A Term Plan?

Written by : Knowledge Centre Team

2025-10-31

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Like any other youngster, Raj thought he was invincible and did not think much about buying insurance. He spent his 20s and 30s prioritising career growth, travel, and short-term goals; insurance was nowhere on his radar. One can't really blame Raj. At the prime of one's health, the idea of dealing with unforeseen circumstances is the last thing on people's minds.

Today, he is in his late 40s and is blessed with a loving family comprising two teenage children and a caring wife. Along with providing for them and saving up for his children's higher education, Raj's responsibilities also include repaying his home loan. A recent conversation with a colleague nudged him into thinking, what would happen to his family if he weren’t around tomorrow?

That’s when Raj realised the critical importance of term insurance, even at his age. If you are on the lookout for buying a term insurance plan, then you have landed on the right page. This blog will explore the reasons for buying a term insurance plan in your 40s.

Key Takeaways

With major life milestones like children’s education and home loans approaching, term insurance ensures your family’s future is safeguarded in your absence.
While costs rise with age, term insurance remains the most affordable form of life cover, even in your late 40s.
Look for add-ons like terminal illness cover, accidental death benefit, and premium waivers to strengthen your policy.
A term plan can help clear outstanding debts and also be a tax-efficient way to pass on wealth to your loved ones or a cause you support.
If you missed buying a plan earlier, your 40s are still a great time to act. What matters is starting now, not when you should have started.

Reasons to Buy Term Insurance in Your 40s

Your 40s mark a critical financial turning point, with higher responsibilities, growing family needs, and long-term commitments. This makes it the perfect time to invest in a term insurance plan that ensures your loved ones are protected, no matter what lies ahead.

Changing Life Goals- During your early years, you have good health, fewer responsibilities, almost no dependents and very little debt, if any. There isn't a lot of motivation or immediate need visible to invest in insurance. However, as you age and start shouldering more responsibilities, you understand the importance of insurance.
In your late 40s or 50s, you have a better estimation of your insurance needs on the basis of your income, family, lifestyle, etc. You have a more precise estimation of what works for you, what doesn't and how much cover you need. You can then use your experience and wisdom to design a custom Life insurance plan that suits your needs.
Shifting Dynamics-With improved healthcare and better lifestyle habits, life expectancy has significantly increased. Not too long ago, one could only get term insurance till the age of 55. Backed with actuarial evidence, term plans today such as the iSelect term plan from Canara HSBC Life Insurance provide a life cover till the age of 80. The premiums do come at a higher cost, but considering the benefits and peace of mind you get with it, the extra charge is not something you should think twice about. This is especially true in Raj's case as he is the sole breadwinner of the family.

Type of Term Plans to Invest in the age of 40s

Late Retirement- Nowadays, the retirement age is not rigid. You are not necessarily expected to hang up your boots at 60 as was the case earlier. And even if you do, you could start a small venture or continue working in a consulting role. This means you can earn a decent sum of money even at a later stage in life. Hence, paying your term insurance premiums shouldn't be a problem. So, buying a term policy later in life should not act as a deterrent as the ability to pay premiums also subsequently increases.
Outstanding Debt- Term insurance at any stage in life is a great way to ensure the financial security of your family. More so if you are in your late 40s and have extended home loans, personal loans or any other liability. Passing on debt to your children in the event of untimely death can disrupt their lives. Term insurance will ensure that all your debts are covered, and even after that, your family is left with a sizeable amount to continue to live well as per the lifestyle you provided them. Buying a term plan even later in life will protect your loved ones from life's uncertainties.

Estate Planning- Term insurance is a selfless investment. It's not for you; it's for your loved ones - your spouse, children, grandkids, etc. Term insurance today is used as an active tool for estate planning. With good insurance coverage, you may be able to enhance the amount of wealth you pass on to your heirs. The beneficiary of an insurance policy is indisputable. The insurance may be a tool for your spouse to be self-reliant and not be dependent on the children or you may want to give it out to charity as a good deed.
Ideally, one should invest in a term plan between the ages of 30 to 40, but if you are in Raj's shoes, it's never too late to hop on to the bus. The need and importance of insurance don't fade with age. And since term plans are the cheapest form of life insurance available, term plans such as iSelect are still affordable even with increased premiums. And it allows citizens till the age of 70 to invest in the plan.

Understand the Reasons To Buy A Term Plan Before You Turn 30

The comprehensive protection of iSelect gives your life cover till the age of 80 with inbuilt cover for terminal illness and accidental demise. Additionally, you have the option of covering your spouse too in the policy. Therefore, whatever your age, the iSelect Term Plan is the perfect protection plan for you and your family.

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Is It Too Late to Buy a Term Plan in Your 40s?

Absolutely not. Ideally, people buy term insurance between 25 and 35, but if you missed that window, your 40s are still a great time to invest. Yes, the premiums are slightly higher than if you were 30, but the peace of mind and financial security you get far outweigh the cost.

With options like iSelect Smart360 Term Plan by Canara HSBC Life Insurance, you can get coverage up to the age of 80, even if you buy in your late 40s or early 50s.

Read to know: if you should buy a term insurance plan in your 50s.

Features to Look for in a Term Plan in Your 40s

Choosing the right term insurance plan in your 40s requires more careful consideration than it would in your 20s or 30s. By this stage, your financial responsibilities have grown, and your future goals are more clearly defined. Therefore, it's essential to look beyond basic coverage and select a policy that truly aligns with your evolving needs. Here are the key features to prioritise when selecting a term plan in your 40s:

Comprehensive Coverage- A robust term plan should go beyond just offering a basic death benefit. Look for policies that include important add-ons such as:
- Terminal illness cover: It offers financial support upon diagnosis of a terminal condition.
- Accidental death benefit: It provides an additional payout if death occurs due to an accident.
- Spouse coverage: This coverage ensures protection for both partners under the same plan.
- Waiver of premium on disability: The premiums are waived if the policyholder becomes permanently disabled
These features act as an additional layer of financial safety, especially when life takes an unexpected turn.
Adequate Sum Assured- In your 40s, the financial needs of your family are at their peak. Children’s education, outstanding loans, ageing parents, and lifestyle expenses all demand significant financial backing.
A good thumb rule is to opt for a sum assured that is 10-15 times your current annual income. For example, if you earn ₹15 lakhs per year, a cover between ₹1.5 crore and ₹2.25 crore would offer reasonable protection.
Also factor in future costs like children’s higher education, marriage, rising medical expenses, and inflation to ensure your cover doesn’t fall short when it matters the most.
Flexible Premium Payment Options- Flexibility in premium payment becomes crucial as you age. Many plans now offer limited pay options where you can finish paying premiums in a fixed period, say, till age 60, but enjoy life cover up to 80 years or more.
This is particularly helpful if you plan to retire early or want to reduce financial obligations in your 60s. You stay protected without worrying about premium payments during your retirement years.

Conclusion

Your 40s are not too late to start thinking about life insurance. In fact, it’s one of the most important decades to take it seriously. With rising financial responsibilities and family goals nearing execution, term insurance becomes more of a necessity than an option.

Don’t let age deter you; let it drive smarter decisions. A term plan bought today can become your family’s safety net tomorrow.

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.