It is often said the earlier you buy a term insurance plan, the better. Want to know why? Read on to find the answer.
Youngsters these days are smarter and more informed than what they were a few decades ago. They realise their responsibilities, are independent from a very young age and hence, wish to plan their finances well in advance. One important step in this direction is getting a life insurance plan that secures the future of their loved ones in their absence.
Enter Term Insurance. Term insurance is the cheapest and most simple form of insurance that financially protects the future of your dependants, in case of your untimely death. It is often advised to get a term insurance plan early in ones’ life. Why, you ask? Read on to know why 20s is not considered ‘too early’ to buy a term insurance plan.
1. Premiums are cheaper when you are young and healthy- When you are young and in the pink pf your health, your premiums are lesser as compared to an older person with pre-existing ailments. Hence, it is always advised to lock in the premium amount by purchasing a term plan at a young age and reaping its benefits in the long run.
2. Easy to Purchase- With the advent of technology, there are many tools that can aid one in purchasing a term insurance plan. One of them is a term insurance calculator that helps you determine the premium that you would be liable to pay based on your chosen sum assured, age, income and lifestyle habits. Hence, you can compare term plans online and choose the right term insurance plan at the click of a button.
3. Can stay insured for a longer period of time- 20s is the correct age to buy a term insurance plan as you are secured for a longer period of time. You can choose the tenure of your coverage and ensure that you stay rest assured that you and your family shall stay financially secured by paying a nominal premium.
4. Dependants are taken care of in your absence- In your 20s, most of us don’t have too many dependants. But if you are the bread winner of your family and your parents depend on you for income, you absolutely must get a term insurance plan to secure their future. In case of your unfortunate and untimely death, your dependants can use this amount to pay for future living expenses, loans or any other expense as they deem fit. Hence, your family is financially taken care of.
5. Tax Benefits- One major benefit of buying a term insurance plan is that it makes you eligible for tax benefits of upto Rs. 1.5 Lakhs under Section 80C of the Income Tax Act, 1961. So a term insurance plan not only secures your future, but also helps you in financial savings. Isn’t that great?
While no one can avoid the unfortunate ultimate truth of life, i.e. death, one can surely stay prepared to ensure his/her family does not have to suffer in their absence. Therefore, it is always advised to compare and choose a term insurance plan early in life.