New Delhi, Oct. 1 -- Buying term insurance early can reduce the premium for the same level of cover, but age is not the only factor that determines how much a policyholder pays. Health, lifestyle, occupation, policy term and the amount of cover also affect the premium.

For a Rs.1 crore term insurance cover with a 30-year policy term, the annual premium under Aditya Birla Sun Life Insurance's Salaried Term Plan is Rs.8,064 at age 25, Rs.10,464 at 30, Rs.14,784 at 35 and Rs.21,792 at 40, according to Kamlesh Rao, MD & CEO, Aditya Birla Sun Life Insurance. At 40, the premium is therefore about 2.7 times that at 25 for the same cover and policy term.

But whether someone should buy term insurance in their 20s depends on their financial respo...