Why is the 20s not an early age to buy term insurance?
There is no right time to buy term insurance; however, purchasing as early as possible is better. Life is full of uncertainties, and when one can knock on your door, nobody knows. Thus, it is wise to have a backup plan or a disaster protection strategy in place as soon as you begin your career.
Today’s youth are more educated, more astute, and financially independent at a very early age than they were a few years back. Now, they know about their responsibilities and plan their way ahead of time. And buying a term insurance policy to secure the financial future of their loved ones is likewise a significant step towards financial planning.
A term insurance policy is the simplest form of life insurance and the most affordable one, too, providing a comprehensive death benefit to the policyholder’s family in case of his or her sudden demise within the policy tenure. Financial experts recommend buying term insurance as early as possible, which could be in the 20s as well. So, let’s understand why it is desirable to buy term insurance in your 20s.
What is a Term Insurance Policy?
Term insurance is a commitment that guarantees your family’s financial stability and security in case of your demise. To keep the policy active, an individual needs to pay a particular amount regularly until the policy tenure ends. Therefore, term insurance is the best kind of protection for providing financial security to the insured and their family in case of death during the policy term. Nonetheless, in case of the policyholder’s death at any time during the policy term, the policy beneficiary will receive a lump sum amount. Therefore, keep pursuing to discover which plan is best for your age group and the advantages of buying a term insurance plan.
Reasons to buy Term Insurance in your 20s
Below are some of the reasons why you should buy a term insurance plan when you start earning:
1. Low Premium
At the point when you are in your twenties, you might be healthy and ready to buy a term plan with high coverage at an affordable premium rate. Moreover, the amount of premium is fixed for the entire duration of the policy. Thus, it is prudent to buy a term insurance plan at a young age to save substantial funds over the long haul.
2. Easy to Purchase
Buying a term plan in the present times is much easier than before because various insurance companies and insurance aggregators like iiflinsurance.com provide online services. You can undoubtedly compare different term plans from multiple insurance companies using a term insurance calculator to find the one that best suits your necessities.
Moreover, various online tools are accessible to you, like the eligibility and premium calculator, which permit you to choose the best term insurance plan depending on your income, age, and sum assured. Therefore, you can buy your desired term insurance plan custom-made to your particular necessities with the snap of a button.
3. Insurance for Longer Period
At the point when you purchase a term plan in your twenties, you can take advantage of your young age by buying a long-term insurance policy that will keep you insured for a more extended timeframe. In addition, you can guarantee that you and your loved ones will be financially secured for the next 40 to 45 years by paying a small premium.
4. Tax Benefits
Besides shielding your family from life’s vulnerabilities, buying a term insurance policy at a young age permits you to save a lot of cash every year through tax benefits. Under section 80C of the Indian Income Tax Act, you get tax benefits for paying the premiums towards the insurance policy, and you can save up to Rs 1.5 lakh every year.
5. Riders
Term insurance also comes with the option to add riders to the base policy. Riders are add-on benefits that enhance the scope of your base coverage. They are readily available along with your policy at a nominal additional premium. However, opt for riders only if you require. Buying term insurance at a young age will make these riders more affordable.
The takeaway from this write-up is that term insurance policies can guard you and your friends and family while additionally giving financial security. This form of life insurance has an easy application process, comes with a customizable feature, is accessible to individuals from varying backgrounds, and with a broad scope of necessities. Therefore, you should not delay buying a term insurance policy at any stage of life. The earlier you buy, the more beneficial it can be. Look for the right term insurance as per your requirements and budget and make your buying decision. You can visit iiflinsurnace.com to know more about term life insurance and how to buy it.
