Why you should opt for a Term Insurance Plan at a Young Age
With the rate at which the global health index is shaping nowadays, no one really knows what and when can affect your health. Along with health problems, road accidents are also becoming a common issue now, many times leading to death. Therefore, irrespective of your gender, it is essential to make sure that your family’s financial future is safe and secure in your absence. And the best way of doing it is to buy term life insurance.
Though saving money is something that everyone keeps a track on, but investing in insurance policies has proven to be far better and more effective. Today, there are different types of insurance plans that are available online. These plans offer you the flexibility to choose the best one for yourself.
Talking about term life insurance, it is an affordable option to safeguard your family’s financial future in the case of any mishap. It is the simplest form of life insurance plan that provides high life coverage at a fixed premium rate for a specific tenure. After the tenure is complete or the insurance cover gets over, the policyholder can either renew the insurance plan or else let go of the cover. If in case you opt for the renewal of your the term life insurance, keep in mind that the premium rates and terms and conditions of the policy will also get revised.
Advantages of Buying Term Insurance at an early age
It is said that young age is the best time to invest in a term life insurance. Primarily because you get a high life cover at a much lower price. Not convinced yet? Well, following are some of the benefits that will clear your doubts about buying a suitable term insurance plans at an earlier stage of life: –
- Early Age Means Lower Premiums: One of the most significant benefits of buying a term life insurance plan is the low premium. Young age works like an added security for the insurer as the premium rates are quite affordable for term life insurance. At a young age, the risk of falling ill is considerably lower, and thus your calculated premium becomes less than usual. For example, if you are 27-years old, the premium that you have to pay towards term insurance will be a lot more economical than what a 50-year older person might have to pay. This is because, in the case of term life insurance, higher age equates to higher risk in the eyes of the insurer.
- More Options: The younger you are, the more options you get. Since there are a plethora of term insurance options available online nowadays, you can compare the term insurance policies before making a choice. Also, these are available for different tenures as well. You can either get the cover for one year with an annual renewal option or else get it for a lock-in period for five years that covers short-term debts.
- Tax Benefits: Yet another benefit that you get by investing in a term life insurance policy at a younger age is the tax benefit. If you are paying a premium up to Rs. 1.5 Lakh per annum against your term life insurance, then you are entitled to get an exemption from paying tax as per the rules of the Income Tax Act under Section 80C. However, you need to fulfil specific terms and conditions for the same.
- Stress-Free Life: Another significant benefit of having a term life insurance policy at a younger age is the stress-free life that you will lead. Making sure that your family’s future is safe and secure in your absence is a responsibility that you must shoulder. With affordable term life insurance quotes, you can opt for a term insurance plan that will ensure the same. Additionally, depending upon your policy provider’s terms and conditions, term life insurance also gives you the scope of changing the premium amount as you may need. So, you don’t need to worry about whether you are under-insured or over-insured.
- Additional Benefits: Buying affordable term life insurance will also help you with various other factors. To start with, there are insurance riders that can help make the term insurance coverage well-rounded. Benefits like critical illness rider, hospital cash rider, waiver of premium rider, accidental death benefit, and so on are some of the coverage aspects that come within this discussion. You can, of course, compare term insurance policies online after including the riders you prefer, and see which one provided the best coverage at the most competitive premium.
At the end of the day, it is about understanding your responsibilities right from the beginning and plan accordingly. And term life insurance should be a necessary part of your future as well as financial planning. Moreover, while choosing the right term life insurance for yourself, you need to take extra care. The term plan you select should be based on your requirement so that you can enjoy life with a greater sense of assurance. And if you are choosing a term life insurance at an early age, then you don’t have to worry further.