What is the Best Age to Buy a Term Insurance Plan?

You are full of optimism, enthusiasm, and hope as a young person. It's the moment when you're laying the groundwork for a prosperous professional and personal life. Moreover, you are looking forward to the numerous milestones ahead. It's possible that getting life insurance isn't one of your top priorities. However, there are a few compelling reasons to assume otherwise. Purchasing life insurance is a prudent step that could be the first of many crucial decisions that will define your financial path.

What are Term Insurance Plans?

A term policy offers life insurance coverage that safeguards your family's financial security. When the policyholder passes away, the plan corpus is paid out in a lump payment to the policyholder's nominee. It's worth noting that the term insurance plan has no maturity benefit, which means you won't get a payout or bonus if you outlive the policy's term. Its principle is straightforward: it protects your family's financial interests when you are no longer able to offer a regular salary.

Why Should You Buy Term Insurance Plans?

The term policy has one of the largest sum assured amounts in the Indian insurance market today. Depending on the plan features, insurance provider, and your income profile, the policy could have a sum assured of Rs 1 crore or more. However, just though the plan has a high sum assured does not mean the premium payment would be expensive as well. In fact, the premium is one of the lowest in India today across all insurance products. Term insurance is one of the most cost-effective life insurance choices. Its affordability makes it a potential option for people looking for a low-cost life insurance policy.

Must read: How to Choose the Best Term Insurance Company?    

What is the Best Age to Buy a Term Insurance Plan?

Although you can get a term insurance policy at any time between the ages of 18 and 65, it is recommended that you do it in your early twenties. This is because a person in his or her early twenties is typically fit and healthy. It should be mentioned that an essential aspect in determining premiums is age, and the amount due rises with age. Getting a term insurance plan at this point in your life will save you money on premiums. Furthermore, because term insurance premiums often remain the same throughout the policy term, starting early is more advantageous. When you buy term insurance straight from the insurance provider online, your premium is even lower because online processing expenses are low, and there is no broker engaged. The broker commission savings are passed on to you. Moreover, a term policy allows you plenty of cushion between now and when you choose to upgrade to a more expensive endowment plan to grow your life insurance plan. 

Endnotes

While you may not have any present responsibilities when you purchase term insurance, the sum assured can help cover any loans or liabilities you may have later in life. Moreover, the premiums paid for a term insurance policy are eligible for tax benefits under Section 80C. Furthermore, under Section 10 (10D) of the Income Tax Act, the payout to the insured's family is tax-free. As a result, a term policy can be used as both a pure protection tool and a tax-saving strategy.

Also read: Top Term Insurance Plans for Working Women

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.