Why Age Matters in Term Insurance
Term insurance premiums are calculated primarily based on age and health risk. Insurers use mortality tables that show the probability of death at each age. Younger individuals are statistically at lower risk, which translates into significantly lower premiums. For every year you delay buying term insurance, the premium rises by roughly 8–12%. A policy bought at 25 can cost half of what the same coverage costs at 35, and a third of what it costs at 45. This compounding effect makes early purchase one of the most important financial decisions for salaried professionals.
Key Takeaways
- 25–30 ideal: Lowest premiums, longest coverage, lock in rate for decades
- 30–35 still good: Slightly higher premium but manageable; don't delay further
- 40+ costly: Premiums jump; medical tests may affect approval and loading
- Health matters: Clean health = lower premium; lifestyle affects underwriting
- Compare by age: Use term insurance calculator to see premium by entry age
Ideal Age: 25 to 30 Years
The best time to buy term insurance is when you start earning and have dependents or expect to have them soon—typically in your mid-20s to early 30s. At 25–30, you get the lowest possible premium for the same coverage. A ₹1 crore term plan for 30 years may cost ₹8,000–12,000 per year at 25, but ₹15,000–22,000 at 35, and ₹35,000–50,000 at 45. Locking in a low premium early means you pay less over the full policy term. Even if you don't have dependents yet, buying early secures insurability—you may develop conditions later that make insurance expensive or difficult to get.
Premium Comparison by Age
📊 Approximate annual premium for ₹1 Cr cover, 30-year term (male, non-smoker)
Buying in Your 30s: Still a Good Window
If you missed the 20s window, buying in your early 30s is still advisable. Premiums are higher than at 25 but far lower than at 40. Many people buy term insurance when they get married or have their first child—these life events are natural triggers. The key is not to wait until your late 30s. By 38–40, premiums spike sharply, and medical conditions like hypertension, diabetes, or elevated BMI can lead to loading (extra premium) or even rejection. If you're 32 and planning to buy, do it this year rather than next.
Buying Term Insurance After 40
Buying term insurance after 40 is possible but comes with challenges. Premiums are 2–4 times higher than at 30. Most insurers require comprehensive medical tests—ECG, blood sugar, lipid profile, sometimes treadmill test. Pre-existing conditions can result in loading (e.g. +25% or +50% on premium) or exclusions. Some conditions may lead to rejection. If you're 45 and uninsured, it's still worth applying—the cost is high but the need for protection doesn't reduce. Consider a slightly lower sum assured or shorter term to keep premium manageable. Never skip insurance because it's expensive; instead, buy what you can afford.
Health and Lifestyle Impact on Premium
Insurers assess health through declarations and medical tests. Smoking status alone can increase premium by 30–50%. BMI above 28–30 may attract loading. Diabetes, hypertension, heart conditions, and family history of critical illness affect underwriting. Good habits—regular exercise, no smoking, healthy weight—help secure standard rates. If you have a condition, disclose it; non-disclosure can void the policy. Some insurers offer preferred rates for very healthy individuals. Buying when you're healthy, even if younger than 'ideal', often beats waiting until you have dependents but also have early health issues.
When to Increase Coverage
- Marriage: Add coverage; spouse may depend on your income
- Childbirth: Increase sum assured for education and upbringing costs
- Home loan: Cover outstanding loan; ensure family isn't burdened
- Salary jump: Rule of thumb: 10–12× annual income; update as income grows
- New dependents: Aging parents, disabled sibling; factor in their needs
Common Mistakes When Deciding Age
- Waiting for 'right time': The right time is now; premiums only go up
- Assuming employer cover is enough: Employer life cover ends on job change; get your own
- Underinsuring to save premium: 10–12× income is minimum; don't cut cover to save ₹2,000/year
- Not comparing insurers: Premiums vary 20–40% across insurers; use a calculator
- Ignoring inflation: ₹1 Cr today may be inadequate in 20 years; consider inflation when choosing sum assured
Use the Term Insurance Calculator
Use our Term Insurance Calculator to compare premiums by age, sum assured, and tenure. Enter your age, desired coverage, and term to see approximate premium across different entry ages. This helps you quantify the cost of delaying.
Final Recommendation
Buy term insurance as soon as you have an income and expect to have financial dependents. Age 25–30 is ideal; 30–35 is still good. After 40, act quickly—every year of delay increases cost and reduces options. The best age to buy is the youngest age at which you can afford the premium. Your future self and your family will thank you for locking in coverage early.
Disclaimer
Premium figures are indicative and vary by insurer, sum assured, term, and health. Actual premium depends on underwriting. Consult an insurance advisor for your specific situation.