Delaying Term Insurance Can Cost You Big

• Term insurance premiums rise ~30% between ages 30-35 due to increased statistical risk.
• Delaying purchase can raise costs, limit coverage options, and affect policy terms.
• Occupation impacts access; salaried may get discounts, but risk drives premiums.

Term insurance is a cost-effective way to protect a family’s financial future. However, many people in their 30s delay buying a policy, often unaware that even a short delay can raise premiums significantly.

How age affects premiums?

Age is a key factor in determining term insurance costs. Insurers increase premiums as applicants get older, reflecting higher statistical risk and potential health issues.

Vaibhav Kathju, CEO and Founder of Inka Insurance, says, “Between ages 30 and 35, premiums typically rise by around 30% for healthy non-smokers. A ₹1 crore, 30-year plan could cost ₹10,000–₹13,000 annually at 30, rising to ₹13,000–₹16,000 at 35.”

Chetan Vasudeva, Senior Vice President at Elephant.in,

adds, “A healthy individual seeking ₹1 crore coverage may pay ₹11,000–₹12,000 at 30, increasing to ₹15,000–₹16,000 by 35.”

For higher coverage, the effect is more pronounced.

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Saurabh VijayVergia, Founder & CEO of CoverSure, notes, “A ₹2 crore plan at 30 might cost ₹20,000–₹24,000 annually. By 35, it could rise 30–40%, adding ₹80,000–₹90,000 over the policy’s lifetime.”

Aditya Mall, Appointed Actuary

at Generali Central Life Insurance, explains, “Even healthy individuals face higher premiums with age because insurers adjust for statistical risk.”

The five-year delay impact

Even a short delay can increase premiums and limit options:

Age	Sum assured	Annual premium (₹)	Total over 30 years (₹)
30	1 crore	10,000–13,000	~3.3 lakh
35	1 crore	13,000–16,000	~4.3–4.5 lakh
30	2 crore	20,000–24,000	~6.6 lakh
35	2 crore	26,000–33,600	~9 lakh

(Source: Industry experts)

Delaying a purchase may also reduce effective coverage. Older applicants could face stricter underwriting, shorter terms, or additional charges if health conditions arise.

Occupation and income factors

While age, health, and

lifestyle primarily determine premiums, occupation and income can affect policy access.

Kathju notes that salaried applicants may get a first-year discount of 10–20%, while self-employed individuals rarely benefit. Vasudeva adds these differences are generally modest, around 5–10%.

Mall says income does not change per-lakh premiums but affects the sum assured an applicant can access.

“Consistent documentation, like payslips for salaried employees or audited statements for self-employed individuals,

makes underwriting easier,” he adds.

VijayVergia stresses that risk, not income, drives premiums.

Timing your purchase

Buying early can be advantageous. Kathju highlights features like “smart exit,” which lets policyholders reclaim most premiums after 25 years.

Experts recommend treating term insurance as a financial foundation—delaying may limit options or increase costs.

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