When to Purchase a Term Insurance Plan?
Published On Sep 05, 2021 10:00 AM By Kanika Wadhwa
Table of Contents
In the event of sudden demise of the sole bread earner of the family, then it is evident for the family to undergo not just an emotional shock but also a financial turmoil. The possible savings that the family members may own may not be adequate enough to meet all their needs financially. Therefore, to avoid a stressful financial situation, a wise individual always plans to secure the future of their loved ones financially by purchasing a term insurance plan at an early stage in their life.
What is the Correct Age to Purchase a Term Insurance Plan in India?
This is a common question that every policy buyer ponders over before purchasing a term insurance plan. Most of the people think that the appropriate age of buying a term insurance plan is in their late 30’s as they are unaware of the benefits derived from a term plan in the early stage of life.
Moreover, it’s a fact that not each person holds the same income, hence most of the individuals may not have sufficient funds to purchase a term plan when they begin earning. Keeping the afore-mentioned things in mind, here are the various stages at which individuals can purchase the ideal term plan online:
In their Early 20s
The most appropriate age to buy a term insurance plan for individuals is in their early 20s. Buying a term insurance plan at this age will assist in safeguarding the future of the policyholder alongside instilling healthy saving habits. Moreover, in today’s time, various individuals prefer getting married in their late 20s or early 30s, thus, they do not hold any added financial obligations on their shoulders. This means that they can easily keep a part of their income aside in order to pay a premium. Moreover, the earlier you buy a term plan, the lesser the premium you will have to pay.
Also read - 10 Questions To Ask Before Selecting A Term Plan
In their Late 20s or During Early 30’s
Generally, this stage of life is when people get married to start a new phase of their life. Therefore, to safeguard the future of their partner and other dependents, it is the most appropriate time to buy a term insurance plan. As individuals have just begun with their married life, there is no responsibility of looking after a child and the other expenses incurred is also less. This is the time when individuals can easily extract funds for these term insurance plans and they can get several tax benefits as per section 80C of the Income Tax Act.
In a Nutshell
It is always suggested to buy a term insurance plan at an early stage of life so that you can safeguard yourself and your family members financially at a more affordable cost of monthly, quarterly or yearly payable premiums.
You may also like to read - Tips to Buy the Best Term Insurance Plan in India
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.