Buying Term Insurance at a Young Age: Is It the Right Move?

Why Do We Need Term Life Insurance?

Term life insurance gives money to your family if something happens to you. It helps them pay for daily needs, loans, or other expenses. It is one of the simplest and lowest-cost types of insurance. It is useful if you are the main person earning in your home. Buying it early means you get better cover for a lower cost. This helps protect your family without a heavy cost on your pocket.

What if your term insurance plan expires when you are around the age of 55 to 60 years? Would we need to buy an insurance cover again?

If your plan ends at 55 or 60, you may not need another term plan. By that age, many people finish their loans, children grow up, and savings increase. This means your family may not need the same protection again. Also, buying a term plan at 60 can be costly. So, it’s best to buy a term plan early with a longer cover—like 30 or 40 years. That way, you stay protected during your most important financial years.

What is the best way to calculate a person’s life insurance need and coverage?

Everyone has different needs, so there’s no fixed way. You can start by looking at:

• Your current income
• Loans or debts you need to repay
• How much does your family need for the next 10–20 years
• Future costs like school fees or weddings
• Your savings and other insurance covers

Once you add all these, you can find out how much cover you need. It’s a simple way to make sure your family has enough money if you’re not there.

Do We Get Returns on Term Plans?

No, term plans mostly do not give any money back if you live through the policy term. They are pure protection plans. This means you pay the premium only to get a safety cover for your family. Some term plans may offer a return of premium, but they cost more.

Conclusion

Buying term insurance at a young age is a wise step. You pay less and get more years of cover. It helps protect your family’s financial future if something happens to you. At a younger age, you are healthier, and it’s easier to make better plans. If you wait, you might have to pay more or may not get the cover you want. Remember, term insurance is not just for returns, but for peace of mind. It’s about making sure your loved ones are safe—even when you are not around. Plan early, stay covered, and secure your family’s future simply and smartly.

FAQs

What is the best age to buy term insurance?

The best age to get term insurance is in your 20s or early 30s. Usually, you are in better shape, and even if you are not, you are more likely to get a good premium. The ability to get the best deal is much greater in your younger years, even though you will get more time on a longer policy term. This way, your family can be protected for a long time. The earlier you start, the more you save. If you wait, prices can bloat, especially if you have any changes in health status. So, not only does starting early keep you covered, but it keeps your premium low as well.

Should I get term life insurance in my 20s?

Yes, getting term life insurance in your 20s is a smart step. Even if you are not married or don’t have kids yet, it still helps. The premium is lower when you are young. Once you buy a plan, the cost stays the same for the whole term. You don’t have to worry about price hikes later. You can also choose a longer coverage period. It’s like planting a tree early—it grows better. So, buying in your 20s helps you plan for your future family and gives peace of mind at a very low cost.

Can I buy term insurance for my child?

Term insurance may not be for children. It is designed for people who earn money and have others who depend on them. Children do not have any income or responsibilities, so they do not need term insurance. Instead, you can save money for your child’s future with child education or savings plans. These plans help you build funds for school, college, or other life goals. Once your child grows up and starts earning, they can buy their term insurance. Until then, it is better to keep them protected through your insurance and good savings.

Can a student buy term insurance?

A student can buy term insurance only if they are at least 18 years old and earning some money, like from a part-time job or business. Insurance companies need proof that the person has an income. This is because term insurance is meant to protect people who earn and have financial responsibilities. If the student is not earning, it’s better to wait. Once they get a job, they can buy a plan easily. For now, parents can ensure safety with their own term or family insurance.

What is the best age to buy long-term insurance?

The best age to buy long-term insurance is when you start earning. This is usually in your 20s. When you’re young, you are healthier and the premium is lower. You can choose a plan that gives you 30–40 years of protection. It’s also easier to get approval from the insurer when you are young and fit. Starting early means your family stays safe for a long time without spending much. It also lets you plan your future better. So, buying a long-term plan early keeps you covered through the most important years of your life.

Who is not eligible for term insurance?

Term insurance is usually not given to people who don’t earn money. If someone has no job or business income, insurance companies may not offer a plan. Children and students without income also cannot get term insurance. People with serious health problems might face rejection or be asked to pay more. This is because term insurance is for people who have others depending on their income. If there is no income or the risk is very high, insurance companies may say no. So, to be eligible, you need income and good health.