Life is unpredictable, you never know when it will be your last day on the planet. It is one of the harsh realities that no one wants to think or admit. Everyone thinks if they are young nothing uncertain will happen to them. We all hear sad news of untimely passing of people all the time.To provide financial security to your beloved family, it is highly important you buy a term insurance plan at the soonest possible. Term plans are the purest and the cheapest types of life insurance plans. The best time to get one is as soon as you start earning. It’s the protection you and your family need to tackle the many uncertainties of life. A severe illness or a road accident can derail your plans for the future. In times like these, a term plan comes as a saviour.
Read on to know the reasons why you must buy a term insurance at a younger age.
Ageis a crucial factor in premium calculation of term insurance plan
One of the core factor that determine the premium you pay on term insurance is age. When you are young the risk of contracting any diseases is less. As you age your body gets more prone to diseases which might affect your life style and deteriorate your health and lifestyle. This is the reason you may have to pay higher premiums if you decide to buy term insurance at a later part of your life.
A person who is 25 years would definitely pay a lower term insurance premium than a person who has turned 30! This means, the younger you opt for a term insurance plan, the cheaper you get to pay the premiums too
Don’t delay safeguarding yourfamily members or dependents against financial risk in your absence
At a young age, you dream of a certain lifestyle you want for your family. You buy a house and a car on loan. The home paying responsibility is completely on you and your absence can put a big financial strain on your dependents. They will have to bear the brunt of paying off the home loan and car loan on your behalf. Even the lifestyle you have been providing them will disappear and it would get extremely difficult to manage day to day expenses with your contribution. So it’s better not to delay and safeguard your loved ones from the financial risks.
Get cover before getting any lifetime medical condition
While you are young and fit getting a term insurance plan will be easy and cost effective. As you age, your immunity too lowers down. The chances of attracting to various life-threatening diseases increase too. Besides, there are higher possibilities of your term insurance getting rejected in case of any pre-existing conditions. Insurers usually find a person with a higher age risky, because survival rates gradually drop with increasing age. Therefore, buying a term insurance plan at a younger age is highly recommended.
Planning early is always better
Today insurance companies offer variety of term insurance plans to suite every individual needs. A term plan is very necessary when you have a young family as the number of dependents are more. Over the years the children may become independent or you would have paid off your loans and gathered enough savings to avert any financial risk in your absence. Alternatively, you might need more cover as you age to protect yourself against the inflation risk. The point is planning early is always better so you can be well prepared to financially strategize your risks in different stages of your life.
Tension Free Life
Being young means you are also establishing yourself career wise or business wise. There is already so much stress of other things, you do not want to add more stress of having a nightmare of exposing your loved ones to financial strain in your absence. Getting term insurance at a young age will free you and your family of financial trouble in your absence. This will help you concentrate and keep you focused on your life goals.
Dependency on your employer
You feel great and emotionally touched when your employer offers you a term insurance plan. But, switching multiple jobs for a better career may abstain you from getting the benefits from the term plan offered by your employer.
So, better late than never, it is better to buy a term insurance plan individually inspite of getting covered by your employer. This would certainly help you to cover the risk of death towards your family.
Right from the early days of our earning we constantly look for different ways to save money. Every year we earn and pay tax to the government. To reduce our tax payable we seek out various ways and consult financial advisors. One of the way to save tax is through investment that fall in the tax saving laws and bracket. Term insurance is such an important product that government also encourages of buying it and gives tax benefits on premium payment under Section 10 (10D), under the Income Tax Act. So apart from protecting your loved ones from financial strain there is also a great financial benefit for you and your family.
Death may be unpredictable. But, making financial arrangements for your family through a term insurance plan can give you peace of mind. With so many benefits it would be smart and wise to buy a term insurance at a young age. Procrastinating it any further is taking a gamble with your life and the life of your loved ones.