Home Advice How Age Affects Term Life Insurance Rates

How Age Affects Term Life Insurance Rates

How Age Affects Term Life Insurance Rates
Image by Drazen Zigic on Freepik

Providing for your family is a fulfilling experience. Getting your daughter her favorite book or buying a new pair of shoes for your husband who refuses to let go of his ruined pair takes care of your family’s needs and keeps you emotionally content. But what happens if you can no longer support them because of any unfortunate mishap or eventuality? An ideal solution for protecting the financial future of yourself and your family is a term life insurance plan. 

What is Term Life Insurance?

Term life insurance is the simplest and most affordable type of life insurance plan. It provides financial protection in the form of an assured amount (lump sum payout) to the person nominated by the insured person in case of unfortunate demise. The nominees can use this sum to cover their day-to-day living expenses or pay off any outstanding debts. 

Your decision to buy term insurance can not only enable your loved ones to keep pursuing their dreams but also protect them from the unnecessary financial burden that may arise due to debts outstanding in your name. 

Why Invest in Term Life Insurance?

While nothing can replace your presence in the lives of your loved ones, it is important to provide a protective shield to safeguard them financially in difficult times. A term life insurance plan offers the following four benefits:

  • Safeguard against unexpected financial commitments. 
  • Provides regular income replacement
  • Offers income tax benefits under Sections 80C and 10 (10D) of the Income Tax Act
  • Financially protects your family at affordable premiums

Why Does Your Age Impact Your Term Life Insurance Rates?

Other than your medical history or gender, your insurance provider considers your age as one of the most important premium-defining factors. The reasons for this are as follows:

  1. Mortality risk: The risk of mortality increases with your age. Older people have a higher risk of health-related issues and demise, which presents an increased risk of being covered and a higher insurance rate.
  2. Period of coverage: The earlier you purchase a term life insurance plan, the longer the policy’s expected term, resulting in lower rates. 
  3. Health status: Age is directly correlated with the likelihood of pre-existing health conditions, resulting in higher premium rates in higher age groups.
  4. Projected lifespan: Your insurance provider relies on statistical data and actuarial calculations to determine the rates of your plan. According to this data, younger people are expected to have a longer life expectancy, leading to lower rates. 

Understanding the Impact of Age on Term Life Insurance Rates

Experts claim that, as you age, term insurance policies become increasingly expensive. Let us understand how reaching certain age groups impacts your term life insurance rates:

In your 20s

While you are in your 20s, most people have fewer responsibilities and are in great health. This allows you to purchase a plan with a longer coverage period for a higher coverage amount at a considerably lower term insurance premium. Moreover, most people start earning in their 20s, and buying term life insurance can help manage taxes.

In your 30s

By the time you reach your 30s, your financial, social, and personal responsibilities can increase. It could be a new home loan or saving up for your kids’ education and marriage. Therefore, considering these added financial obligations, you may not be able to pay higher premiums for a term life insurance plan. 

In such a scenario, you can estimate the amount as per your existing lifestyle and opt for coverage that meets these needs. However, the premium may be somewhat higher. 

In your 40s

If you are in your 40s, you have most likely paid off a considerable portion of your debts and may have started to plan for your retirement. However, as your age increases, you are also at risk of developing a health condition. Considering all this, you should opt for comprehensive life insurance coverage to secure your family’s future. However, the premium may increase because of an increased mortality risk and a lower cover period.  

In your 50s and Beyond

The premium for a term plan significantly increases when you reach your 50s. However, it is still advisable to buy term insurance, even in this age group, to cover any critical illness or secure your family’s financial position. 


Remember, there is no standard approach when it comes to securing the future of your family. While it is never too late to buy term insurance, reaching out to your insurance provider is recommended to find a plan that suits your needs and keeps your mind at peace. However, you should ensure the insurance plan is comprehensive and caters to every financial need. 

Featured Image by Drazen Zigic on Freepik