5 Reasons to Purchase Term Insurance in Your 30s
Updated On Sep 29, 2021
Table of Contents
Most people make use of this span of time to invest and grow their wealth. However, you should grab this window of opportunity not only to grow your wealth, but also to protect it. You can do so by investing in a term insurance plan, one of the purest and most traditional forms of insurance.
Term insurance provides life cover for a fixed duration and offers financial aid to your spouse, parents, and children in case of an unforeseen event. That’s why, we discuss the benefits of term insurance, so you can make an informed decision for your family’s financial security.
Reasons Why You Should Buy Term Insurance Before 30
The list of reasons includes:
Your Family Is Financially Secure
Term insurance plans ensure your financial stability and offer a financial blanket to your family. An unpaid loan, college fees for kids, financial aid for spouse and parents can easily be covered by a term plan. It takes care of your family’s lifestyle in your absence. Thus, ensuring that the burden of your liabilities does not fall on your family. Term insurance is a small price to pay for your peace of mind.
Your Age Ensures Lower Premiums
The younger you are, the lower is the risk of payment by the insurance company, ergo lower premiums for your purchase. Also, once the premium is locked, it does not increase with your age. So, buy term insurance before you hit your 30s to lock your affordable premium.
You Can Opt For A Larger Life Cover
As term insurance plans have no cash value, they are available at an affordable cost compared to other endowment plans of the same cover. The added benefit is, it allows you to provide for your family and strengthen their financial stability in your absence.
You Can Add Innovative Riders
Riders offer additional financial cover over and above the basic sum assured you will get from your term plan. So, riders such as critical illness riders will offer an additional payment (rider sum assured) in case of diagnosis. There are other innovative riders which allow you to cover disability, employment loss and an option to waive premium charge. This allows the policyholders to select relevant riders with the term plan to make life cover more suitable and meaningful.
You Can Save Tax
Purchasing a term plan also means that you save tax. Term insurance plans provide dual tax benefits. The premiums you pay are tax free under Section 80C and the benefits are tax free under Section 10D. Term insurance plan enables you to do tax planning and preserve your financial resources for your family’s stability. So, do not forget to deduct these premiums after purchasing term plans.
Your employer term plan is not enough. Your employer will provide a plan suited to his needs and this will probably end once you switch your job or change career paths. Term plans offered by your employer may not be portable and will vary on the number of years of service also. So, it’s best to rely on your judgement for your family security.
Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.