Why Does Term Insurance Have a Minimum & Maximum Age Limit

Term insurance is one of the most popular and affordable forms of life insurance. It provides a lump sum to your nominees in case of your untimely demise during the policy term. Term insurance can help you secure your family’s financial future, pay off debts, and achieve your long-term goals.

Did you know that term insurance has a minimum and maximum age limit? Yes, you read that right. You cannot buy term insurance at any age. You need to satisfy specific criteria to be eligible for it.

What are the age limits for term insurance?

The age limit varies depending on the term plan provider, the type of plan, and the policy term.

Generally, the minimum age limit for term insurance is 18, and the maximum is 65. However, some term insurance plans may have lower or higher age limits.

The age limit also depends on the policy term, which is the duration for which the term insurance plan covers you. The policy term can range from 5 to 40 years or more, depending on the plan and the provider. The longer the policy term, the lower the maximum age limit. For example, if you want to buy a term insurance plan for 40 years, you may not be able to do so if you are over 45.

The mortality rate, risk profile, claim experience, and market competition of the term insurance provider determine the age limit for term insurance. The age limit is designed to balance the risk and cost of term insurance coverage to customers.

Why do term insurance plans have a minimum age limit?

  • The minimum age limit is there to ensure that you are legally capable of entering into a contract and making informed decisions about your life insurance needs. Term insurance is a serious and long-term commitment that requires you to pay regular premiums and nominate your beneficiaries. You should be able to understand the terms and conditions of the plan and the implications of your choices.
  • The minimum age limit is there to prevent misuse or fraud. Term insurance is meant to protect your dependents financially in case of death. It is not meant to be used as an investment or a savings tool. If you buy term insurance at a very young age, you may not have any dependents or financial liabilities. This may raise suspicion about your motive or intention behind buying term insurance.

Why do term insurance plans have a maximum age limit?

  • It limits the risk and the cost of providing term insurance coverage to the customers. Term insurance is based on the principle of pooling of risk, where a large number of people pay a small amount of premium to cover the risk of a few people dying during the policy term. The premium is calculated based on the probability of death, which increases with age. If there is no maximum age limit, the term insurance provider may have to pay a large number of claims, which may exceed the premium collected. This may result in losses for the term insurance provider or higher premiums for the customers.
  • It ensures that the term insurance coverage is aligned with the purpose and the needs of the customers. If you buy term insurance at an older age, you may not have any dependents or financial liabilities.

How does age affect the premium of term insurance?

The older you are, the higher the premium you have to pay. This is because the risk of death increases with age, and the term insurance provider has to levy a higher premium to cover the higher risk. For example, if you purchase term insurance for 20 years with a coverage of Rs 1 crore, you may have to pay a monthly premium of Rs 500 at the age of 25, but you may have to pay a monthly premium of Rs 1,000 at the age of 45.

Use the term insurance calculator to decide on the optimal coverage based on your age while keeping the premium low.


Term insurance, a vital tool for securing one’s family’s financial future, comes with minimum and maximum age limits. These limits, typically between 18 and 65 years, vary based on factors like the provider and policy term.

Minimum age requirements ensure informed decision-making, while maximum age limits manage risk and costs. Remember, the policyholder’s age significantly impacts premiums, with older individuals facing higher rates.