Why The 20s Are Not Considered Early To Buy A Term Plan
Published On Jul 03, 2021 11:15 AM By InsuranceDekho
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It is said that ‘buying a term insurance policy is never too early or too late.' Life is full of unpredictable liabilities and there is no time frame that it follows to come up. Thus, it is wise to invest in a life insurance policy as soon as you start working.
Young people today are more informed, smarter, and financially savvy than they were a few decades ago. They are aware of their responsibilities and plan their finances ahead of time. Purchasing a term insurance policy to secure the financial future of family members is also an important step in financial planning.
A term insurance policy is one of the simplest and most affordable types of life insurance, providing a death benefit to family members in the event of your untimely death. Many experts advise purchasing a term plan as soon as possible. Continue reading to learn why it is preferable to purchase a policy in your twenties.
What Is A Term Insurance Policy?
Term insurance is a contribution that ensures your family's financial stability and security in the event of your death. If a person has this policy's insurance, they must pay a set amount on a regular basis. However, if the insured dies at any time, the nominees named by him at the time of policy purchase will receive a lump sum payment. Term insurance is the most effective type of insurance for providing financial security to the insured and their family in the event of a sudden death. Continue reading to find out which plan is best for your age group and the benefits of purchasing a term insurance policy.
Reasons To Invest In Term Insurance At Your 20s
The following are the reasons why you should purchase a term insurance policy as soon as you begin to earn-
1. Low Premium
When you are in your twenties, you may be in good health and able to purchase a term plan with high coverage at an affordable premium. Furthermore, the premium amount is fixed for the duration of the policy. As a result, it is advisable to purchase term insurance coverage at a young age in order to save a significant amount of money in the long run.
2. Simple To Purchase
Purchasing a term plan is now easier than ever before, thanks to insurance companies offering online services. You can easily compare different plans from various insurance providers to find the one that best suits your needs.
Furthermore, there are numerous online tools available to you, such as the eligibility calculator and the premium calculator, which allow you to select the best plan based on your income, age, and sum assured. As a result, with the click of a button, you can purchase a policy tailored to your specific needs.
3. Protection For Longer Period
When you buy a term plan in your twenties, you can take advantage of your youth by purchasing a long-term policy that will keep you protected for a longer period of time. By paying a small premium, you can ensure that you and your family members are financially secure for the next 20 to 25 years.
4. Tax Benefits
Aside from protecting your family from life's uncertainties, purchasing a term insurance policy at a young age allows you to save a significant amount of money each year through tax benefits. Section 80C of the Indian Income Tax Act allows you to deduct the premium you pay for the policy. In a fiscal year, you can save up to Rs. 1.5 lakh.
Term life insurance policies can keep you and your loved ones safe while also providing financial security. The plan, which has a simple application process, is available to people from all walks of life and with a wide range of needs.
Also read - Guide To Protect Your Family With Term Insurance Plans
Guide To Protect Your Family With Term Insurance Plans
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.