Your 20’s is the best time to buy a term life insurance coverage. Most of the people in young age say in 20’s keep themselves busy in crafting their professional careers and meeting their own basic expenses.
In this age, usually people don’t think about buying life insurance. But as you started earning, don’t you think you must share the financial responsibilities of the family? You need to think about the people you love and must assure the financial security of your loved ones.
When you are in 20’s, you may not have people dependent on you financially. But, if you are the only earning member of the family, the family members are financially dependent on you, it’s the right time to buy a term plan that secures the financial future of your family.
How Term Life Insurance is Beneficial for your Family?
Having term insurance is extremely essential that help to tackle the big ‘what if’ moments in the life. Term Life Insurance is an important financial tool that pays your family a lumpsum amount (equivalent to life cover chosen at the time of buying the policy) immediately after your demise.
For instance, you choose a term plan with a life cover of Rs 1 crore, the insurance company will pay exactly the same amount to the beneficiary after your unfortunate death.
It helps your family deal with financial uncertainty which may trigger due to your death or accidental disability that impair your earning capability.
Note: In term life insurance, the life coverage is applicable only during the term chosen in the policy.
Why Buying Term Life Insurance During 20’s is Not Too Early?
Let’s go through some important reasons that signifies buying term insurance at a young age is an intelligent move.
Coverage comes at a cheaper premium
When you are looking to buy life coverage, your age and health are the key factors that an insurance company will consider while determining the eligibility and premium before offering you the policy.
At a young age say in 20’s, you are healthy and don’t have any illnesses. Also, there are lesser chances to become ill in this age. While offering you a term life coverage, the insurer is taking less risk when you are healthy and having no illnesses. So, if you buy the life cover at a young age, the insurer offers you the policy at a less premium with high coverage.
When you are at a young age, insurance companies tend to offer you the term insurance policy without any hassles. As you are healthy and fit, there is no risk for insurers to issue the policy and they will offer you the life cover at a lesser premium. So, when you are in 20’s, you will get the term life coverage easily & quickly.
Secure financial future of family
If you delay in purchasing a life cover, it only put your family in a tremendous financial risk. If you choose to buy the coverage at a later stage, it will cost you more. Upon buying the term life coverage at a young age will ensure a peace of mind, as your family is financially covered against any mishappening. If you are the sole earning member of the family, you should buy a term life insurance coverage at the earliest.
Minimize any chances of policy rejection
As we grow old, we may become prone to several medical conditions or illnesses. If you delay the purchase of life insurance coverage, the premium will increase or it may lead to rejection of policy on the grounds of your health condition. If you want to avoid this, it’s wise to have a term insurance coverage at a young age, when you will get the policy at a low premium.
Saving on taxes
Upon buying a term life insurance, the annual premium paid qualifies for a tax deduction of up to Rs 1.5 lakh under section 80C of the Income Tax Act, 1961. The policy proceeds are also eligible for tax benefit under section 10(10D) of the I-T Act.
You must get yourself covered with a life coverage when you are in 20’s. Don’t ever assume that only older couples need life insurance.
Term Life Insurance is a pure life cover that provides the complete financial security for your family. Sooner or later, you will buy a life cover to keep your family and loved ones secured, when you are not around. So, why not buy it at a young age when you have the option to get a life cover at a less premium.