Is term insurance really needed beyond your earning years?

When you think about your family’s financial security, term insurance often feels like the natural first step. It’s the simplest, purest form of life insurance — offering a large safety net at an affordable price, designed to protect your family’s well-being in your absence. But here’s an important question many people ask: How long do you actually need this protection?

Evolving needs

In your younger years, your family looks up to you. Your spouse relies on your income to keep the household running smoothly. Your children are just beginning their journey, depending on you for everything — love, support, and financial security. Maybe you’re also caring for your parents or other loved ones. In this chapter of life, term insurance is like a guardian angel — it promises your family can carry on, pursue their dreams, clear debts like home and personal loans, and maintain the life you’re building together, even if you’re no longer there.

But life changes. Imagine yourself in your 60s or 70s. Your children are adults, standing on their own two feet. Your home loan has been paid off with years of hard work and discipline. You’ve created assets and a legacy. Do you still need a large term insurance policy to protect your family? For most people, the answer is a gentle “probably not.” Because by then, your family has grown strong, and your focus shifts to your own peace of mind

The cost of protection

Many people don’t realise this — term insurance premiums rise steeply the longer you choose to stay covered. For instance, at age 30, you might pay Rs 40,000 a year for Rs 1 crore of cover up to age 85. But if you decide to limit that coverage to age 70, you could get twice the amount of coverage — Rs 2 crore — for the very same premium. Similarly, starting young will ensure a better price throughout the term and wider coverage to choose from

Additionally, women who juggle multiple roles often end up with coverage that barely meets their needs. However, term insurance is typically 15% more affordable for women than for men. As a result, women of the same age can secure term insurance at a lower premium than men.

So, here’s the real question for every family: Is it worth paying higher premiums for coverage you may not need after you retire? Or would you rather secure a smarter policy that gives you more protection now, when your family truly depends on you?

The changed focus

After retirement, your role in your family’s financial story changes. It’s no longer about replacing income if something unexpected happens — it’s about ensuring your security and peace of mind. Your priorities become:

• A stable income that supports your lifestyle
• Medical protection to cover health expenses
• The freedom to enjoy your hard-earned retirement years

This is where retirement and pension plans come in — designed to provide a steady income, help you maintain independence, and offer peace of mind. Plus, these plans often come with valuable tax benefits and protections against inflation, tailored to your unique needs.

One of the biggest challenges families face in their golden years is healthcare costs. Term insurance won’t help with rising medical bills, but a good health insurance plan and dedicated retirement savings can. Instead of stretching yourself thin to keep paying for term insurance you may no longer need, it often makes more sense to strengthen your health coverage and build a medical emergency fund. Also, with Return of Premium options in Term policies, you can ensure that an additional saving is available during your retirement years.

The bottom-line

At the heart of financial planning is one simple truth: it’s about love, responsibility, and peace of mind. When your family is young and relying on you, term insurance is an essential shield — a promise that they’ll be cared for, no matter what.

As time passes, your role shifts — and so should your financial plan. Protect yourself with the right retirement income, healthcare cover, and savings that allow you to live your later years with comfort, confidence, and freedom.

(The writer is Chief Bancassurance Officer, Tata AIA Life Insurance)