What is 35-year term insurance?
A 35-year term insurance is a term plan with a tenure of 35 years where the nominee gets the sum assured as the death benefit if the life assured passes away within the policy term.
Suppose you get married at 30 and become a parent at 35. So, if you had bought a 35-year term plan at the age of 32, it financially safeguards your family till you are 67. By that time, your child may become financially well settled.
How does a 35-year term life insurance work?
Knowing beforehand how a 35-year term life insurance functions may help in identifying the best possible time to make the purchase according to your needs and reap the benefits in an optimum manner. Here’s a glance
- As you apply for a 35-year term insurance, the insurer sets the premium based on your age, gender, health condition, and other details, which are payable in your preferred option.
- The insurer verifies all the information shared by you and may conduct a medical test if needed.
- As the life cover gets active in your 35-year term plan, the nominee receives the sum assured if the life assured dies within the policy tenure . The same can be used by your family to maintain the existing lifestyle, pay off debts (if any), and save for future life goals like a child’s overseas education. However, there is no payout if you survive the policy term.
Who should consider buying a 35-year term insurance?
Designed to provide life cover for a longer period, a 35-year term insurance may be more suitable for those looking to financially protect their loved ones for an extended period. The following sets of people might find it beneficial.
Young parents:
A term insurance plan for 35 years may financially secure the family of young parents for a longer period, allowing the child ample time to get settled in his/her career before the policy expires.
Business owners:
A business owner or a self-employed professional may take business loans in course of his/her career. A 35-year term life insurance may provide the family with a financial backup to clear the outstanding debts if he/she suddenly passes away.
Single parent:
The child of a single parent may not have anyone else to fall back on. A term insurance plan for 35 years might ensure that the child’s education or marriage plans are not disrupted if the life assured parent is no more.
What are the benefits of buying 35-year term insurance?
A term insurance with a long tenure like the 35-year term plan has the following benefits that might come to your aid.
Tax Benefit:
Annual premium payment of up to Rs 1.5 lakh for a 35-year term insurance plan is exempted from taxes under section 80C of the Income Tax Act 1961 (in case of old tax regime). Additionally, opting for health-related riders lets you claim you to claim a deduction under section 80D of Rs 25,000 a year (in case of old tax regime), while the death benefit is tax-free under section 10(10D).
Affordable premiums:
Since the term insurance pays only the death benefit in unforeseen circumstances, the premium payable is much lower than other life insurance plans . This may make it an affordable pick.
Financial protection:
The 35-year term insurance is designed to financially secure your family for a longer period against unforeseen struggles and let them sustain the current lifestyle, pay off debts, and fund desired goals incase of unforeseen eventuality.
Death benefit:
The 35-year term life insurance plan pays a death benefit to the nominee if the life assured dies within the policy term.
Add-on riders:
The term insurance plan allows you to enhance coverage through optional add on riders available at a nominal additional premium that may cover accidents, critical or terminal illness, or waive off remaining premiums in select cases.
How to calculate 35-year term insurance premium?
A higher premium is payable by those with lesser life expectancy. The premium thus depends on the age, income, gender, health condition, family health history, occupation, lifestyle, and habits of the life assured amongst other factors . For example, the younger you are, the lower the premium payable will be because of high life expectancy.
To calculate the premium payable, you may resort to an online calculator, which relies on the chosen sum assured and policy tenure for the estimation. For the premium calculation of a 35-year term life insurance, you may thus choose a sum assured based on your income, number of dependents, outstanding liabilities, desired life goals, and current savings.
Steps to buy a 35-year term insurance online
A 35-year term insurance plan may be bought online following a set of easy steps. Here’s what you can do.
- Go to an insurance company website, an aggregator platform, or a related app.
- Fill in the basic details like name, age, income, preferred sum assured, etc.
- Choose a plan from available options that matches your needs and affordability.
- Fill in the insurance proposal form with detailed information and submit relevant documents.
- Appear for medical tests if instructed.
- Once the insurer verifies the proposal form and medical records, you’ll know if your policy has been approved or rejected.
FAQs
How does a 35-year term plan work?
A 35-year term plan pays the sum assured to the nominee upon the life assured’s death within the policy term against scheduled premium payment.
Who should consider buying a 35-year term life insurance?
Young or single parents and business owners may buy a term life insurance policy for 35 years.
What happens if I outlive my 35-year term insurance policy?
No payout is made if you outlive your 35-year term insurance policy.
Can I increase the coverage amount during the policy term of my 35-year term plan?
Yes, you can increase the coverage during the policy term of your 35-year term plan, provided you’ve chosen the increasing cover option.
How much term insurance can be claimed tax-free?
In case of unfortunate circumstances and demise of the life assured, the entire insurance amount can be claimed tax-free.
Are riders for critical illness or accidental death tax-deductible?
Yes, under Section 80D of the Income Tax Act, 1961, premiums paid for critical illness or accidental death benefit riders qualify for a tax deduction of up to ₹25,000.
An ISO 9001:2015 
