Understanding The Right Time To Buy Term Insurance Policy
Updated On Dec 14, 2021
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A term insurance plan is one in which the earlier you start investing in, the better it is. If you invest in a good term insurance plan while you are young, the lesser premium you have to pay. Investing early in a term insurance plan is a sign of a good investor and is also the right time to buy a term insurance plan as they focus on new benefits. Investing early is better because when you are young there are fewer diseases that you are afflicted with. As you grow older, lifestyle diseases show up and that is the reason the premiums are higher.
Below is a detailed study to show you when is the right time to buy a term insurance plan.
Right Time To Buy A Term Insurance Plan
Here is a detailed study that shows which is the best time for you to purchase a term insurance plan:
When You Are In Early 20's And Unmarried
Today most people marry late and you can have an added income in your family. Your expenses are way lesser than others and this is the time you should look forward to creating financial support for your future years. At this phase, term insurance is very affordable and you can also save tax, making it the right time to buy term insurance plans.
When You Are In Mid/Late 20s And You Are Married
This is a crucial time as you've just begun or will begin with a new chapter in your life. For a newly wed, this is the perfect time to invest so that you create a good financial backing for your family and that is sure to grow in a few years time. At this phase a term life insurance taken will need to have more coverage as compared to your earlier investments.
When You Have Your Own Young Ones
This particular stage in your life is when your responsibilities grow as a parent. Children's education, extra curricular activities, other such expenses, medical expenses take it's seats. This is when you have to think of protecting your family and ensuring they are financially secure when you are gone. Your long term debts should be covered and with the added responsibility you will need to secure yourself and your family with a higher protection term policy.
When You Are Planning To Retire
Although not the very right time to buy term insurance plans, once your kids are in college or pursuing their higher education you need to start planning for your post retirement years. This is when you need to look for some good pension plans that will find you and your family well. It is also important to consider premature demise and how your investments will support your family when you are gone.
It is advisable to buy a term plan as early as possible. Term insurance plans are also much cheaper at early ages as compared to later stages of your life. Once you cross a certain age there are chances of Insurance companies declining your policies or could even charge a higher premium. The sooner you invest the better it is for you and your family's future.
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.