Why the 20s are Not Considered Early to Buy a Term Plan

When it comes to buying term insurance online, then there is a common saying that purchasing a term insurance policy is never too early or too late. And there is sound reasoning behind this saying.

We all know that life is full of unpredictable liabilities and there is no time frame that any problem follows. Because of this, you wouldn’t want to leave your family without proper financial protection when you are gone. And for that what you need to do is know how to buy term insurance.

Purchasing a term insurance plan is not as simple as searching ‘LIC tech term plan buy online’ on the internet. Instead, you need to do proper research and know about several aspects related to a term insurance plan before making a decision in regards to which policy you should buy.

Today, we’ll help you with that. We’ll make sure that you are not just searching for ‘LIC tech term buy online’ when you are on the lookout for the best term insurance plan.

What is a Term Insurance Policy?

A term insurance policy is one of the simplest and most affordable types of life insurance policies that are available in the market. This policy provides a death benefit to family members in the event of an untimely death of the policyholder.

Because of these reasons, experts advise individuals to purchase a term plan as soon as they start earning. Hence, the 20s are not considered too early to purchase a term insurance plan for the financial security of your family. You can set the amount on a regular basis for your term insurance plan.

The Benefits of Term Insurance Plans

There are several benefits that an individual can experience if he or she is investing in a term insurance plan. These benefits are mentioned below.

• Low Premium

When you are in your twenties, you are in good health. This means that you can purchase a term insurance plan with high coverage at a very affordable premium. Further, the premium amount and duration of the policy are also fixed. As a result of this, it is recommended that one should get a term insurance policy at a young age. This will save a significant amount of money in the long run.

• Simple to Purchase

Purchasing a term insurance plan is now simpler than ever. This is mainly due to the fact that insurance companies are providing online services. This will allow you to easily compare different term insurance plans provided by insurance providers in the market.

You can find the best plan that suits your needs without any hassle. Further, with just a few clicks you will be able to tailor the plan specifically to your needs and pay for it online only.

• Protection for Longer Period

When you purchase a term insurance plan in your twenties, then you can take advantage of the fact that you will be covered under a term insurance policy for a very long time to come. This means that by just paying a small premium, you will be able to ensure your entire family for the next 20 to 25 years.

• Tax Benefits

Apart from providing your family with the financial security that it needs when you are not around, purchasing a term insurance policy will also save you money each year in taxes. This is applicable under section 80C of the Indian Income tax Act. In a fiscal year, you can save up to INR 1.5 lakh.

Common Mistakes People Make While Buying a Term Plan

Now, you must be pretty sure that you want to buy a term insurance plan. However, before you actually start doing that, you should know that there are some common mistakes that most people make while purchasing a term insurance plan.

If you learn about these mistakes right now, then you can easily avoid making these mistakes down the line. A list of the common mistakes that people make while buying a term insurance plan is mentioned below.

• Insufficient Term Insurance Cover

The basic principle behind a term insurance plan is to provide coverage to the family of an individual in case of an early demise. Sadly, most people tend to underestimate the needs of their family and how much family coverage the family will need. This should not be the case with you. Hence, you must take your time and assess the needs of your family before selecting a sum insured value.

• Delaying the Purchase of Health Insurance

It is true that you need to purchase a term insurance policy. However, at the same time, it does not mean that you should delay purchasing a health insurance policy. The health insurance policy will be of great use to you and give you financial protection while you live.

• Sharing Incorrect Medical Information

You should not lie while filling the forms for purchasing a term insurance policy. This is because if the insurance company finds that any incorrect information was shared by you at the time of purchase, then they can exercise their right to deny the claim request. This will not be worth saving the little discount that you get on the premium amount after not sharing the correct information.

• Not Purchasing an Insurance Policy

Purchasing an insurance policy offline can be filled with a lot of hassles. From visiting the branch office several times to not finding the correct copies of the physical documents, this entire process can be very difficult.

Thankfully, you can avoid those difficulties by simply purchasing your term insurance policy online. Purchasing a term insurance policy online is very simple and can be done in just a few clicks. This should also come easier to you since you are in your 20s and are already very familiar with the current technology that exists in the world.