Should you buy a term plan after 50

Should you buy a term plan after 50


Term plans provide high life coverage at affordable premiums and for a long duration of time. These are some of the chief reasons why they are the preferred mode of securing your family’s financial future. People are encouraged to buy term plans as early in their life as possible to maximize the coverage duration that a term policy can offer. However, what if you have turned 50 and hadn’t bought insurance earlier? Is it still advisable to buy one now? Let us examine this further.

Factors That Affect Your Term Plan Coverage

When you buy a term plan, you are required to undergo a medical test. This is to assess your present health condition, based on which your Sum Assured is calculated. This is the amount that is paid out to your family in the case of loss of your life during the policy duration. If we apply this to the topic at hand, then it is more common for a younger person to have better health hence receive higher coverage for lower premiums, as they are deemed less of insurance risk.

Another aspect that is considered while calculating your coverage and premium amounts are the ‘earning capacity’ of the applicant. Considering a standard retirement age of 60 yrs, younger professionals have a higher earning capacity for a longer duration than people in their 50s. This, too, helps in securing a higher sum assured for your family.

What Does It Mean For People Above 50?

Well, it must be evident by the above-mentioned points that people above 50 can expect to pay higher premium amounts when they buy term plans. The question that they need to contemplate is whether the benefits outweigh the cost of buying a term policy at this age? These benefits could mean different things for different people and need to be ascertained based on individual situations. Some of the circumstances that would justify the purchase of a term plan for people above the age of 50, can include:

  • Pending loans and debts to be paid in your absence.
  • Sole providers and earners in a family with non-earning dependents.
  • People who have not invested in other types of retirement products like pension plans / annuity funds.
  • People with critical illness such as cancer and kidney failures or family members with disease or disability.

People in any of these or similar situations are advised to consider buying a term plan at the earliest.


Term insurance is a low cost and convenient method of collecting a large enough corpus for helping out with your family’s financial needs in the unfortunate event of your demise. The amount that is paid out to your family is higher when the term policy is started at a younger age, and the premiums would be lower. However, with the global events of recent times and the unpredictability surrounding life, people with specific requirements or unique situations (some of which are mentioned in the previous section) should consider buying term insurance irrespective of their age or even if their premiums are higher. This cost-benefit analysis is dependent on individual needs and should be conducted beforehand.


If you wish to get some assistance regarding what sort of cover you can receive of the amount you would need to pay, simply head to the website. Here, you can browse through the different kinds of term plans, understand the features, and then decide. Making this comparison will also help you get the best deal in the process. Moreover, buying insurance online is a hassle-free and paperless process that is easily done from the comfort of home.

CATEGORIES : Insurance


Or using ePRNews Account

Don't have an account ? Sign Up

Register New Account

Already have an account ? Login

Reset Password

Already have an account ? Login