Why A Term Insurance Policy Is Required Only Till Age 60

• Reduce taxable income by up to Rs. 1,50,000 deduction under section 80C**
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Purchasing term insurance is an ideal way to protect your family from any financial burden that they may face in case something happens to you. If you are young and have financial liabilities that you have to take care of, it is highly recommended that you purchase a term insurance plan for yourself, for this type of plan has cheaper premium rates and provides you peace of mind while you go about taking care of your goals.

What is the ideal age post which it makes no sense to have term insurance? It is generally recommended that you should have term insurance only till the age of 60 and having one beyond this age is not a great decision. We will list out some of the reasons why you should take term insurance only till the age of 60:

• Term insurance gives you peace of mind: While you are working to provide your family with the basic necessities of life, having a term insurance plan helps you work towards your goal without having to worry about the future of your family even if you are not around in future. Post your retirement, you may have acquired the wealth and also achieved your goals by that time and thus purchasing term insurance becomes redundant.
• Your family members may no longer be dependent on you: One of the most important reasons behind purchasing term insurance is that your family members, especially your children are financially dependent on you. In case something happens to you, the insurance company will pay the nominee a lump-sum amount called the death benefit which will take care of your children’s future and help them achieve their goals in life. By the time you have retired at the age of 60 years, your children are likely to have a job or be settled down and may no longer be financially dependent on you. Thus you don’t need to have term insurance beyond the age of 60 years.
• Premiums become expensive: Your term insurance plan does not come for free as you are paying premiums to keep it active. The premium rate increases with your age and with no one financially dependent on you, or no financial liabilities to take care of, it makes no sense to have term insurance and pay high premiums for it. It is important to understand that insurance is a business and the insurance companies will make profits if you continue to live and pay premiums. For example, if you have opted for term insurance for 75 years, and you die before the completion of the policy term, your nominee will receive the death benefit. If you survive you will have to continue to pay premiums which is where the insurance companies make profits.

Hence, these are some of the reasons why you should have term insurance only till the age of 60. You will have to be clear about your future goals and based on that purchase term insurance accordingly. It is important to understand that post the age of 60 years, you might have created ample wealth that would take care of you and your spouse. You may have also achieved your goals and with no one financially dependent on you, buying term insurance and paying high premiums for it may not be the best financial decision for you. Hence, if you are looking to buy term insurance, you must ensure that you have insurance which is covering you till the time you intend to work.