What is the right time to buy a term insurance policy?

When should I buy a term insurance policy?

This is always a crucial question among many people who are seeking to buy a life insurance plan.

Shekhar, a 25 years old young man, works at an IT company. He is not yet married and has retired parents who get their pensions. Shekar lives with his parents in his own house, and therefore, he has no commitments to pay house rent. Whatever he earns every month goes for his personal expenses or savings. He has not yet started any investment plans too. This being his lifestyle, should Shekar think of buying a term insurance plan at this stage of life itself?

This is a self-explanatory question. However, this is not only the case of Shekar, but many people at various ages of their life stage still thinking about whether to buy term insurance or do we still have time for it, or just ignore it.
Let us see in detail the right time to buy term insurance.

5 Reasons Why buy life insurance earlier as possible? 

There are many reasons for this, and here they are: 

1. Low premium: The earlier you choose to buy the term plan at your young age, the higher the chances of getting a lower premium. Anyone can buy the term insurance plan between the age of 18 to the maximum age of 65 to 75 years. Some term insurance tenure might also extend till your age of 85 years of 99 years. Therefore, you get a chance of holding your insurance active paying the regular premium for up to 50 years or over. And your premium will also be lower since you are going to pay for a longer term. 
2. High sum assured: Similarly when you buy a term insurance plan in your 20s or early 30s, the chance to get a high sum assured will increase. Again, this is because of your good health condition and your ability to pay a regular premium without any break. This will also be the age at which you will start building your family. Therefore, you will get a clear idea about how much you need to save for your future, mainly to protect your family members. 
3. Plan your family financial needs: At the beginning of your family life, that is, at your age of late 20s and early 30s, you will get an idea about how much you want to save for your family future, your children education, and any further financial commitments like debts, home loans, or anything else. Therefore, you will be able to calculate your cover amount for 30 years and calculate the sum assured and premium accordingly. Besides, you will also have an active, increasing income, which will easily support you to pay your premium without any defaults.
4. Time to research and plan: If you start to think about buying a term plan at an early age, you will have sufficient time to research the possible and available term plans available in the market. You will also get an opportunity to study the insurance companies and the types of insurance plans they are offering. Therefore, starting your shopping at an early age will be ideal to do. 
5. High chances to surf and analyze: Today, there are many sources and opportunities to surf online and analyze by doing a comparative study. Therefore, starting your search at an early age will help you explore all possible options available to buy the term insurance plan. 

Why not delay buying your Life insurance plan? 

• You are already getting old: Remember you are getting old. The later you begin to buy your insurance plan, the higher the premium you may have to pay. You will also be limited with the choices of picking the most flexible term plans you want to buy. Therefore, if you are over 40 years of age, then never wait; start reacting immediately. 
• Chances of getting a high sum assured are less: Similarly, at the same time, the older you get, the chances of getting a high sum assured reduces. Therefore, even if you pay a higher premium amount, you will not be able to push the sum assured after a limit. Thus, for a lesser sum assured, you will end up paying a higher premium. 
• Limited chance of researching and analyzing: Another essential thing is that you will have access to limited policies available. This is because, as you get older, the number of best term insurance plans available will also get reduced. Therefore, you will be in a position to pick only the plans from a limited option.
• Your financial needs will be higher: If you are in your middle age or over 50 years of age, then your family’s financial needs will also be higher. At the same time, your income range will also start reducing as you move towards your retirement age. Moreover, at this stage of your life, you might have debts like a house loan, education loan, or other types of debts, which you are liable to pay off. Therefore, waiting any further will only increase your risk factors and lose the chances of buying a better plan. 

With all the above-said factors, now you might have an idea about the right time to buy a term insurance plan.
Yes, never late further. If you are in your early 20s and 30s of your age, then start reacting immediately to buy the best term insurance online. At the same time, if you are over 40 years of age, then never hesitate any further, try to buy the term plan from the best life insurance companies, which can give you the life policy with maximum benefits, although the chances are limited.