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Term Insurance Plans For All Age Groups

Updated On Jul 01, 2021

Term insurance is a contribution that ensures your family's financial stability and security in the event of your death. If a person has insurance under this policy, they will be required to pay a certain amount on a regular basis. However, in the event of the insured's death at any time, the nominees nominated by him at the time of policy purchase will be provided with a guaranteed sum of money. 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. Read on to understand which plan is most beneficial for your age group along with the benefits of purchasing a term insurance policy. 

Benefits of Purchasing Term Insurance Policy

Purchasing a term insurance policy can prove to be very advantageous. The following are a few benefits you can avail by selecting a term insurance policy- 

1. Financial Protection

Term insurance can assist you in unexpectedly planning your finances by providing a timely financial solution. The term plan manages your risk by paying you and reimbursing you for the premium interest you have paid.

2. Dependent Security

Just as you protect your family financially in the event of an emergency, term insurance protects your loved ones as well. Your income is replaced by the term plan. It looks after your family's financial needs while you are away.

3. Serious illness protection

Term insurance provides additional benefits in the event of serious illnesses such as kidney failure, heart disease, cancer, and so on.

4. Tax Benefits

The term plan provides tax benefits and additional tax savings under sections 80D and 80C if your time plan includes a serious illness.

Term Insurance Plan For All Age Groups

Accidents are unpredictable. Therefore, investing in an insurance policy is very important to cope with the financial liabilities that accompany them. You can get different life insurance plans at various stages of your life with wide coverage options. However, most of these plans are moulded to offer you the coverage that you require at different phases of your life. The following are the term insurance plans that are suitable for different phases of your life- 

1. In 20s: Most people begin their professional careers in their early twenties and have fewer responsibilities than at other stages of their lives. Most life insurance companies offer the lowest premiums at this age because the risk of death is considered to be the lowest at this age. In general, a 20-year-old can obtain a Rs. 50 lakh life insurance policy for a small annual premium of Rs. 3000 – Rs. 4000. 

2. In 30s: As a common trend most people marry and have children in their 30s. This is the time when responsibilities grow and the need for a long-term plan becomes critical. A person who did not invest in a term plan in their twenties should consider doing so in their thirties. They are expected to receive the second-lowest premium slab in this age group.

3. In 40s: People in their 40s need more financial protection because this is the age when they need to save for retirement while also helping their children with higher education (if needed). Individuals in this age bracket are generally advised to purchase a policy with greater coverage. If the term plan is considered in the 50s, the premium can rise even higher.

4. 50s And Plus: Individuals in their 50s and later will have to pay a much higher premium than those in their 40s. The higher premium amount is despite one's health and lifestyle habits such as smoking and drinking. However, if the family's liabilities and debts are greater and the earning members are fewer, it is still a good idea to invest in a term plan.

Take Away

Purchasing a term insurance policy is an excellent way to financially protect your loved ones. Every member of the family who earns should consider purchasing term insurance at a young age. Although, you may never get your money back if you survive the term plan, the assistance it provides is worth it.

Also read - Importance of Life Insurance At Every Step Of Your Life

When Should You Not Buy Term Insurance?

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.        

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