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What is the policy term I should select?
What is the policy term I should select?
Aug 08, 2013 | 4146 VIEWS

You should choose a policy term till your retirement age or may be till a few years after retirement. Term insurance is taken to cover the risk of loss of income. So ideally take term insurance for a period in which you will be earning money. Beyond that period, the premiums paid by you will become a burden for you.

The higher the term, the higher will be the premiums. So if you take a plan till the age of the 65, you will notice the premiums are lower than the same plan if you had taken it till the age of 75. 

Indicative policy terms for different age bands are mentioned below –

 
Age at the time of buying Policy Term
Below 25 years At least 30
25 to 30 years 30 or 35
31 to 35 years 25 or 30
36 to 40 years 20 or 25
41 to 50 years 15 or 20
Above 50 years 10 or 15

Manoj Aswani
Manoj is the co-founder and COO of MyInsuranceClub. He has experience in Financial Services, Internet, Insurance and Outsourcing business. He has done his Post Graduation from XLRI, Jamshedpur.

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