Should you really buy a Term-Pan till the age of 75 Years?

One evening over tea, my friend Rajesh asked me a question that I’ve heard countless times:

“Why shouldn’t I buy a term plan till 75? Isn’t that when the risk of death is highest? Wouldn’t my family be more secure then?”

His tone was firm, almost challenging, as if I was missing something obvious. I smiled because I knew where this conversation was heading.

Scene 1 – Why Do We Buy Life Insurance?

I asked him gently, “Rajesh, tell me—why do you even need life insurance?”

He thought for a second and said, “Because if I die, my family will need money to survive.”

“Exactly,” I replied. “But think carefully—this need exists only as long as your family is financially dependent on you. If you’ve retired, your children are independent, and your spouse has the retirement corpus—what financial loss does your death cause? Emotional loss, yes. But financial? Not really.”

Rajesh sipped his tea, quiet now.

Scene 2 – The Retirement Factor

I continued, “By the time you hit 60, you’ll have bought your house, funded your kids’ education, maybe even married them off. Do you really think you’ll need a ₹1 crore cover at 70? Won’t your wealth by then be your real security?”

Rajesh raised his eyebrows. “But what if I live longer?”

“That’s exactly the point,” I said with a smile.

Scene 3 – The Insurer’s Game

I leaned forward. “Rajesh, remember this—insurance companies aren’t doing charity. They hire smart actuaries who calculate probabilities to the last decimal. If they let you buy a policy till 75, it’s because they know you’ll most likely survive till then. Which means—you’ll keep paying premiums faithfully, but chances are slim your family will ever get a payout.”

Rajesh chuckled, “So basically, the company is being smart—not me?”

“Bingo.”

Scene 4 – The Inflation Trap

“But wait,” Rajesh argued, “even if I die at 70, my family will still get ₹1 crore. That’s big money!”

I shook my head. “Not really. Think about inflation. Suppose you’re 40 now and you buy that policy. By the time you’re 70, with 7% inflation, that ₹1 crore will be worth just about ₹13.136 lakhs in today’s value. Do you see the trap? You’re paying premiums for decades, but the real value of that cover shrinks drastically over time.”

Rajesh sat back, stunned.

Scene 5 – The Bigger Picture

I concluded, “Rajesh, life insurance is not about squeezing maximum benefit. It’s about timely protection. You only need it until your retirement—your true working years. After that, your focus should be on building and preserving a solid retirement corpus. Beyond 60, keeping a term plan is like betting on your own death. And trust me, that’s not a bet worth making.”

Rajesh finally nodded, half laughing, half thinking deeply. “Looks like the insurance company isn’t the fool here—I would have been!”

I smiled. “Exactly. Act smart. Buy term insurance only for the years you truly need it. Beyond retirement, your wealth—not your policy—should take care of your family.”