If your birthday is around the corner, think of term insurance as more than just paperwork. It’s one of those financial decisions where waiting doesn’t help. Each passing year adds costs, risk, and complications. Read to understand better:
What factor can influence your premium pricing?
How can age and lifestyle impact your term insurance purchase?
If you have been putting off buying a term insurance plan, your next birthday might be a good reminder to stop delaying. Term plans get more expensive with age, and even a single year can make a big difference in the premiums you will pay for decades.
Term insurance is a pure life cover which provides financial protection for a fixed period (the term). If the policyholder dies during this term, their nominee receives a lump-sum death investment component. Term plans are known for offering high life coverage at relatively low-premiums, making it a cost-effective choice for pure life cover.
However, insurance is linked to your age and health profile and these two factors can affect how much premium you actually pay. For instance, the younger and healthier you are, the lower your premium is likely to be.
Once you cross into the next age bracket, the premium steps up, and unlike a one-time cost, it is a higher monthly outgo for the entire policy term.
Take a simple example: a 30-year-old salaried non-smoker looking for a Rs 1 crore cover over 30 years would pay about Rs 972 per month for Term Plan X. Delay that decision by five years, and the same person, at age 35, would pay around Rs 1,426 per month as premium for the same insurance cover.
That is almost a 47 per cent jump, not for one year, but for every month over the next three decades. The cumulative difference easily runs into several lakhs per f rupees.
But premiums are not the only factor. According to Varun Agarwal, head of term insurance at Policybazaar, the biggest value of a term plan is for the family, not the buyer.
“If the primary breadwinner is no longer around, the family still has to manage everyday expenses, children’s education, home loans, and other liabilities. A term plan ensures these commitments don’t become a financial burden,” he says.
The age factor can also affect your eligibility to secure a term plan. Younger buyers not only get cheaper premiums, but also face fewer hurdles during medical underwriting. As Agarwal says, delaying purchase means stricter medical scrutiny, possible exclusions, and in some cases, even rejection if health conditions have developed.
Your lifestyle also plays a big role when it comes to eligibility.
Habits, such as smoking, heavy drinking, or rising health issues like obesity and diabetes can push premiums higher or make coverage harder to secure. “The best approach is to buy early, disclose all details honestly, and lock in a long-term cover while health parameters are relatively stable,” Agarwal adds.
So, if your birthday is around the corner, think of term insurance as more than just paperwork. It is one of those financial decisions where waiting does not help. Each passing year adds cost, risk, and complications. Buying early is less about saving a few hundred rupees a month, and more about giving your family security, and yourself peace of mind, at the best possible price.
