The catastrophic pandemic scenario has forced life term insurance players to impose various restrictions on the criteria of buying term insurance for new buyers. The increase in the losses caused due to the unexpected COVID19 related claims has been the trigger to bring changes to manage the losses and reduce the chances of the claim in the future. Amongst various changes introduced by the life insurance companies, the age limit for term insurance is one of the criteria where the restriction has been introduced.
Various life term insurance companies have reduced the entry age limit for their term insurance policies. This means people above a certain age can't buy best term insurance plans for themselves. While different life insurance companies have imposed different age restrictions that vary from company to company and a plan to plan.
In the books of insurance, age is one of the crucial factors that is considered for various term insurance plan-related factors such as underwriting, premium and eligibility. When it comes to the life term insurance companies, they prefer giving the term insurance plans to the people who are healthy and have the probability to outlive the policy tenure. And it is generally considered that the young person is healthier than an old person who is likely to have some pre-existing diseases or sitting on the borderline and about to develop diseases in them.
Moreover, in the COVID19 prevailed environment the risk of life has increased where the majority of death cases were reported amongst people who were above 40 years of age. Additionally, the people who were having comorbidities in their health conditions due to older age factors were witnessed to suffer more than those who were young and healthy.
Thus, life term insurance redesigned their underwriting, categorizing people under a specific age who are eligible to buy a term insurance plan, else the person might be rejected and put on hold for approval. For instance, if a company makes 45years maximum entry age and if a person is above the age of 45 years, he/she might face a challenge in obtaining a term insurance policy.
Check and compare plans from 21 IRDAI-approved term insurance providers before purchasing a term plan.
The simple and common formula of insurance is applied in this scenario as well i.e. 'Buy Early in life'. It is always recommended to buy term insurance early in life so it entails various benefits with it. Primarily, the purchase of life term insurance early in life diminishes the chances of rejection due to health conditions. When the person is healthy, young and energetic, the life insurance companies feel safe in issuing them a policy.
Secondly, it also benefits in saving extra cost as the premium goes up for the higher age of the policyholder. Once the person purchases a term insurance at the age of 30 years, the affordable premium is paid throughout the policy tenure, whereas, beyond a certain age, the premium becomes expensive and a bit challenging to pay for a long duration. The ideal age to buy a suitable yet affordable term insurance plan ranges from 25-40 years.
Another step is to indulge in healthy activities that straight away give a good and long-lasting life. A person, either practicing any workout routine or sport or anything that leads into a healthy state of the body, is always accepted by insurance companies, considering a profitable bet.
Last but not the least, the new prospective buyer must compare the timeline of term insurance maximum entry age of different companies to make the best selection. The trusted web insurance aggregator provides complete information about various term insurance policies and life insurance companies available in the market. The insurance web aggregator websites give complete information on one platform with a plans comparison feature. This helps the new buyers in understanding the maximum age limit for term insurance of different companies.
Know More About: Benefits of Term Insurance
Always be proactive in buying term insurance to ensure that the family or loved ones don't suffer during the later stage of their life. Even one year exceeding the entry age of the term insurance can lead to suffering people and their families for a long time.