As a majority of us are engaged with our regular jobwe put a lot of effort to make wealth. This leads us to make several kinds of investments. Well, no matter how many investments you are making, one of the best among all is buying a term insurance plan. Although all the other investments will take time to mature; a term insurance policy can help your family in an uneventful situation when you are not there anymore with them.
A sudden demise, especially of the sole bread-owner of the family can put a lot of stress on each of the members of the family. Most of us take house loans or personal loans and paying off those loans is not easy. However, as you take a term insurance plan and even if you pass away way before time, your family will be able to pay off the loans and live a debt-free life.
Now the question is what is the right age of buying a term insurance plan? Well, there is no right age for this. However, the sooner you purchase it, the better it will be for you. Although there is a term insurance age limit in every policy,one should purchase a term insurance plan before the age of 35 years. Let us find the reasons for this.
- Lower cost:For a 25-year-old policyholder, the cover for INR 25 lakh will cost you around INR 5000. To a 35-year-old, the same coverage will cost around INR 8000. Therefore, it can very well be understood that term insurance plans start getting costlier with age.
- Lesser responsibilities:The insurance companies charge higher premiums against the term insurance plans from the individuals who have family members dependent on them, such as young children. However, an individual in his late 20s is not likely to have young children; therefore, will be charged lesser premiums. However, today you are in your 20s means in the upcoming years you will get married and have children, and you would need a term insurance plan to protect your family. Thus, buying a term insurance plan at the earliest is always a smart decision.
- Managing finances becomes easier:People in their 20s have fewer financial burdens on their shoulders. You might have taken a student loan and repaying it or repaid it completely but you do not have a home loan or personal loan to pay off. However, as you age, the responsibilities in your life will eventually increase and you may even find yourself under the burden of debt. At one such stage, purchasing a term insurance plan can make it difficult for you to manage your finances. Therefore, buying a term insurance policy at an early stage will make things much easier for you.
- Qualification is simpler:When you are young, you are healthier than a person who is more than 35 years old. Therefore, there are lesser chances of you getting accepted into a term insurance policy. Therefore, purchasing a term insurance policy when you are young will help you to avoid a lot of hassles.
- Tax benefits:When you buy a term insurance plan, you can save taxes up to 1.5 lakh under Section 80C of the Income Tax Act. And as soon as you buy a term plan, you will be able to save taxes. This also means the sooner you buy it, the more years you can save your taxes.
To conclude, it can be said that a young individual can purchase a term insurance plan more easily and at a much lesser rate. As a whole, it makes things much convenient for individuals below 35 years of age. So if you are still in your late 20s or early 30s, you are advised to buy a term insurance plan and start planning the future out for your family. To buy the right term insurance plan, you must compare some of them before taking the final decision. And to do so, you can visit the website of IIFL and take a look at the several term insurance plans available. Apart from finalizing on any one plan, you will also be able to know several things about term insurance plans and how they can be of great help to your family.