Should You Buy a Term Plan After 40?

Buy a Life Insurance Plan in a few clicks

Now you can buy life insurance plan online.

Kotak e-Term Plan

Protect Your family’s financial future with Kotak e-Term Plan. Know more

Kotak Assured Savings Plan

A plan that offer guaranteed returns and financial protection for your family. Know more

Kotak Guaranteed Savings Plan

A plan that offers long term savings and insurance in one premium. Know more

Kotak e-Invest

Insurance and investment in one plan with Kotak e-Invest. Know more

Kotak Health Shield

Insurance against medical expenses related to heart, brain, liver and Cancer. Know more

Should You Buy a Term Plan After 40?

Should You Buy a Term Plan After 40?
  • 26th Aug 2021 |
  • 713

In India, for most people, the 40s is the most financially productive years of their life. You may be comfortably placed in your profession. You may draw a decent salary to meet your necessities and spare some amount towards savings. Your children may be nearing completion of education and just about to start their career, and the EMIs are taken care of. Life may look settled and peaceful. But, as harsh as it may sound, imagine what happens to your family if you are no longer there? How will they meet their needs?

Let us be honest, while you may do your best to ensure that your family has the best of material comfort, most of these plans revolve around ‘you’ as an individual. But, life can be uncertain. Luckily, it is never too late to secure your family’s financial future. And, the best way to give your family the financial cushion even in your absence is to purchase a robust term plan.

In the event of your untimely demise, your family will receive the death benefit from the insurance company, and they can use the amount to meet their regular expenses and pay off the debts (if any). However, if you have not purchased term insurance because you think being in your 40s is too late, you are only putting the family’s financial position at risk.

So, without any further ado, here are a few reasons why you must buy a term plan even after 40.

Affordable premium

Term insurance has the most affordable premium as compared to other life insurance policies available in the market. And, while you may be in your 40s, you may still be healthier than someone who is in their 50s or 60s. So, the earlier you purchase, the better. You can leverage time benefit and get coverage at an affordable premium.

Get insurance against debt

While in your 40s, you may have a few liabilities like a home loan, credit card debt, or a vehicle loan. The repayment may take a significant amount of your income. But, imagine the family does not have any income due to your unfortunate demise. While they are mourning the loss, they may also face the repayment burden.

To avoid such an unfortunate situation befalling your family, it is better to purchase a high-value term policy. The death benefit will act as insurance against the debts; they can use the payout to repay the outstanding amount.

Add-on Cover Benefits

When you buy a term plan, you have the flexibility to choose an additional coverage option, which is known as riders or add-ons. The riders extend the scope of your regular term plan’s coverage and offer protection against specific risks that are not covered under the main policy.

But, remember, when you buy an add-cover, your premium increases. So, you must be prudent with your choice of add-on cover. For example, if you work in a high-risk environment, it makes sense to buy an accidental cover.


Tax-saving is a critical aspect of financial planning. And, whether you are in your 40s or 50s, you would want to maximise your tax-saving, right? When you purchase a term insurance plan, you are eligible to enjoy a host of tax benefits. The premium you pay is tax-deductible up to a maximum limit of Rs.1.5 lakhs in a financial year under Section 80C of the Indian Income Tax Act.

Additionally, the death benefit that your family member may receive is entirely tax-free under Section 10(10D) of the IT Act.

Final Word

Thus, with so many amazing benefits, there is no reason why you should not purchase a term plan after 40.

Kotak e-Term Plan

Download Brochure


  • Nominal Cost
  • Multiple Plan Options
  • Flexible Payout Options
  • Critical Illness Rider
  • Tax Savings
  • Long term Coverage

Ref. No. KLI/22-23/E-BB/492


Browse our library of resources

- A Consumer Education Initiative series by Kotak Life

Similar Articles

Gift Your Father A Term Insurance Plan This Father's Day

Key Differences Between Term Insurance, ULIPs, And Health Insurance

9 Ways to Help Family Members in Financial Trouble

Insuring Against Accidents with an Accidental Death Insurance Rider

Planning For Children's Future

Does Your Term Insurance Plan Cover Death Due to COVID-19?

Planning For Son or Daughter's Wedding

What is Term Insurance - A Complete Guide

Is There Any Tax Benefit on Term Insurance?

Should Youngsters, Working Couples Buy Term Insurance Plans?

Different Types of Premium in Term Insurance

Why Buy Term Insurance Plan With a High Cover?

Why Term Insurance Is Better Than ULIP?

Cost of Term Insurance Likely to Increase Soon

What All Documents Required For Term Insurance In India?

Individual Life Insurance vs. Group Term Life Insurance

What Is a Passive Income? Why Should You Use It to Buy a Term Plan?

Tax Benefits of Term Insurance in India

What are incremental term insurance plans?

Comparing Term Plans – What Should You Look Out For

Why Premium Amount for Term Insurance is So Low?

8 Benefits of Term Insurance You Should Know

Why 1 Cr Term Plan Is Necessary For Family?

Insurance Policy for Housewife In India

Know How to Invest at Every Age for Larger Returns

Busting Myths and Facts About Term Insurance Policies

Reasons You Need Term Insurance Plan as a Self-Employed Person

4 Things To Expect From Your Term Insurance Plan in India

Does Term Insurance Cover Accidental Death?

10-Year Term Life Insurance Policy - Explained in Detail

While Buying Term Insurance Compare Features, Not Just Premiums

कोविड -19 बूस्टर खुराक के दुष्प्रभाव

10 Ways to Get Your Kids Involved in Your Healthy Lifestyle

Term Vs. Whole Life Insurance: Which One You Should Buy in India?

Should You Have Multiple Term Life Insurance Policies?

Make Your Online Term Plan Your Familys Monthly Payout

Best Investment Plans for Children - Secure Your Child's Future

Advantages & Disadvantages of Term Insurance in India

Do You Need Term Insurance Cover After Retirement?

Can You Increase Your Term Insurance Cover?

Difference Between Term Insurance vs Life Insurance

How to Identify Term Insurance According to Your Needs?

Insuring yourself against Ill Health with a Critical Illness Rider

Insuring Protection Against Death With Death Insurance Rider

Term Insurance: What Happens When You Don’t Pay Your Premiums?

Can I Extend the Tenure of My Term Insurance Plan?

How Does Term Life Insurance Work? Learn the Benefits

Make Your Online Term Plan Your Family's Monthly Pay Cheque

How Not To Get Your Term Insurance Claim Rejected

4 Reasons Why You Need Critical Illness Cover

What Types of Deaths Are Covered in a Term Insurance Plan?

Protection for your family

Ensure Protection Against Death, Disease & Disability With Life Insurance

Increasing Term Insurance and Riders

Why does every working woman need life insurance?

Understanding Term Insurance Riders

5 Term Insurance Benefits for Single Women

How to Compare Term Insurance Online

What Happens if you Hide Facts in your Term Insurance?

Which Term Insurance to Choose: Lump Sum or Staggered Pay-out Plan?

Term Insurance Plans and Policies for Smokers

What are the Documents Required for Term Insurance Plan?

Buying A Term Insurance? Don't Ignore the Claims Settlement Ratio

Why Buy Term Insurance Even at Rising Rates?

What Is a Renewable Term Insurance Policy?

What is Insurance Premium - A Detailed Guide

Is Term Life Insurance Plan an Investment or Expense?

Why is it important to buy term insurance plan?

What Are the Best Term Insurance Plans for Planning Retirement?

Term Insurance Age Limit – Term Plan for All Age Groups

Why Married People Should Buy Term Insurance Under MWP Act?

What Should Be The Duration Of Your Term Plan in India?

Why Spending Time with Friends is Essential for Your Mental Health?

Term Life Insurance Plan for Smokers vs Non-Smokers

What is Form 16, Form 16 part A, Form 16 part B, Information Required and FAQs

Do Beneficiaries Pay Taxes on Term Insurance?

How to Buy 1 Crore Life Insurance Policy Without Medical Test

4 Methods to Calculate How Much Term Insurance You Need

What is a short term insurance policy?

How Much Cover Should I Take In A Term Plan?

Can I Make Changes to My Term Insurance Policy Post Purchase?

What Are Insurance Riders and How to Choose Them in a Term Plan?

All About Term Insurance Inbuilt Coverage

Online vs Offline Term Insurance: Which Is The Better Option To Buy

Calculating Term Insurance Premium

Which Death Type Does Your Term Plan Not Cover?

Is Group Term Life Insurance Provided By Employer Sufficient?

What Happens to Term Insurance Plan With No Beneficiary - Kotak Life

How Does A Term Life Insurance Work in India?

8 Factors to consider before choosing a Critical Illness Insurance

Why should single women purchase term life insurance?

Why Should You Buy Term Insurance in 2022?

Side Effects of Covid-19 Booster Doses

Endowment Plans vs Term Plans: Understanding the difference

10 Ways to Mentally Refresh After a Stressful Day

Can I Get Term Insurance on Behalf of My Spouse?

How to Ensure That Your Term Insurance Claims Are Never Rejected?

Everything About Claim Settlement Ratio for Term Insurance

Are The Add-ons and Optional Features of Term Insurance Plans Actually Beneficial?

Term Insurance with Critical Illness

Can I Buy Term Insurance for a COVID-19 Patient?

How Much Term Insurance Do I Need

Why Should You Not Take A Term Plan Without Medical Test in India?

Is term Insurance Needed for People With No Dependents?

6 Types of Death not covered in Term Insurance Plan

Can Non-Resident Indians (NRIs) Buy Term Insurance In India?

What is the Right Term Period For Term Insurance Policy? Here's How You Should Choose!

How To Calculate The Amount Of Term Life Insurance You Need?

8 Types of Death not covered in Term Insurance Plan

Why Surrendering Your Term Plan Policy In The Final Phase Maybe A Bad Idea?

5 Things To Consider While Buying Term Insurance Plan

Do I Need to Give a Medical Test for Term Insurance in India?

Choosing Riders for Insurance Plans

Can Term Insurance Plans Be Purchased As A Gift?

Steps on How to Buy Term Insurance Online

How To Choose the Right Sum Assured Under a Term Plan?

Why Should New Parents Buy Term Life Insurance?

Why Term Plan Should Be The First Step To Securing Your Future?

Is a Term Insurance Policy Portable?

5 Reasons to Buy Term Insurance When You are in Your 30s

Term Insurance With Riders In India

What Should You opt for - Limited or Premium Pay?

Different Types of Protection Plans

How Much Term Life Insurance Cover Do I Need in India?

Top 3 Reasons Why You Should Buy A Term Plan Now

Eligibility Criteria for Buying Term Insurance in India

टर्म इंश्योरेंस क्या है? टर्म इंश्योरेंस का मतलब

Can A Housewife Buy a Term Insurance Plan - All You Need to Know

How To Change The Nominee in Term Insurance?

Why Term Insurance Is Important in times of COVID-19?

How To Choose the Right Term Insurance Plan?

Why Buying a Term Plan Is Smarter Than Traditional Life Insurance Products

What is a Joint Term Insurance Plan? Key Benefits of Joint Term Plan

Can Senior Citizens Avail Term Insurance?

Why Should You Add a Rider to a Term Insurance Plan?

Is Life Insurance Investment Worthy Enough

6 Reasons That Make Term Insurance a Must Buy

Advantages of Buying Term Insurance in Your 50s

Key IRDAI Regulations That Changed Face Of Term Insurance Industry In 2020

8 Things To Do After Buying Term Insurance

Is ₹1 Crore Term Insurance Good Enough Cover?

What Is the Correct Age to Buy Term Insurance?

Term Plan with Spouse Cover

Is it a Good Time to Buy Term Insurance During the COVID-19 Pandemic?

Tips to Choose the Right Term Period for Term Insurance Plan

All you need to Know about Term Insurance Plans for Housewives

9 Most Frequently Asked Questions on Term Insurance

Buying A Term Insurance Plan? Take These Factors into Account

Term Insurance Basics You Should Know

Insuring Against Disability With Disability Insurance Rider

Term Insurance – Why You Must Include In Your Financial Planning?

What is Critical Illness Policy

Term Insurance Calculator - Everythng You Need To Know

When is the Right Time to Buy Term Life Insurance Policy for Yourself?

5 Benefits of Early Retirement Planning

Term Insurance: Most Common Term Insurance Myths Explained | Kotak Life

Term Insurance: Smokers vs Non-Smokers

Term Plans are Definitely Cheaper than You Think!

Ideal Features of a Suitable Term Plan - Act Now for a Stress-free Future

How to Surrender Term Life Insurance When You Have No Liabilities?

Importance of Term Insurance at Every Stage of Your Life

Is It Good To Buy A Term Insurance Plan In 2022?