1. Your son is eligible to buy a term plan as the minimum entry age is 18 years.
2. However, as a pure term plan financially protects those who are dependent on the "income" of the insured person when he is no more, hence insurers ask for a salary income certificate (like Form 16 and tax returns) or a business income proof (like tax returns and assessment orders).
3. Having said that, there are 18-yr persons who become eligible, like those in business, sports, acting, etc., by furnishing these proofs, and also have dependents on their income too.
4. If that's not the case, it's best to wait till your son gets employed / starts his own business, and meanwhile you could start SIP investment in MFs in his name right away, with the amount you had earmarked for buying his term plans, for 5+ years of wealth creation.
5. Normally, term insurance is bought when young because it gets locked at a cheaper premium, and chances of a medical condition are minimal.
6. As most term plans cover a maximum period of 30 years, it is better to buy multiple policies as he grows older, in order to be adequately covered till the normal working age of 65/70 eventually.
7. For instance, he can buy 30-year policies when his age is 20, 25, 30 and 35/40 years respectively.
8. The life cover amounts of each policy would differ, and can be determined by his insurance needs at the buying age, after taking into account, say, his education loan repayment, home loan repayment, dependency of his parents, wife, kids and other relatives on his income, etc., in case of his untimely demise at any time.
9. While buying policies at the age of 30 or 35/40, he can also split them into term plans with maturities, of say 10, 15, 20, 25 and 30 years each.
10. As the need for term insurance keeps receding with age, he will be able to reduce overall premium costs, when each policy keeps terminating.
2. However, as a pure term plan financially protects those who are dependent on the "income" of the insured person when he is no more, hence insurers ask for a salary income certificate (like Form 16 and tax returns) or a business income proof (like tax returns and assessment orders).
3. Having said that, there are 18-yr persons who become eligible, like those in business, sports, acting, etc., by furnishing these proofs, and also have dependents on their income too.
4. If that's not the case, it's best to wait till your son gets employed / starts his own business, and meanwhile you could start SIP investment in MFs in his name right away, with the amount you had earmarked for buying his term plans, for 5+ years of wealth creation.
5. Normally, term insurance is bought when young because it gets locked at a cheaper premium, and chances of a medical condition are minimal.
6. As most term plans cover a maximum period of 30 years, it is better to buy multiple policies as he grows older, in order to be adequately covered till the normal working age of 65/70 eventually.
7. For instance, he can buy 30-year policies when his age is 20, 25, 30 and 35/40 years respectively.
8. The life cover amounts of each policy would differ, and can be determined by his insurance needs at the buying age, after taking into account, say, his education loan repayment, home loan repayment, dependency of his parents, wife, kids and other relatives on his income, etc., in case of his untimely demise at any time.
9. While buying policies at the age of 30 or 35/40, he can also split them into term plans with maturities, of say 10, 15, 20, 25 and 30 years each.
10. As the need for term insurance keeps receding with age, he will be able to reduce overall premium costs, when each policy keeps terminating.