A term plan is a life insurance which provides coverage for a fixed term/ period of time. It offers benefits in the event of the death of the person whose life was insured under the plan only if death occurs within plan duration. It is advisable to purchase term plan as early as possible to reap its benefits.
As you grow up, you understand you are not alone and you realize the responsibilities on your shoulder. There are people you need to take care of – your parents, your spouse, your children and other dependent family members. Term plan helps you in completing your responsibilities. Once you take a term plan you are fulfilling some of your responsibilities beforehand.
Reasons to Buy a Term Insurance Plan early
Lower premium amount:
If you think buying a term insurance before you turn 25 is too early, you are wrong! When you are young, you have the best combination of being fit and healthy. You have a fewer responsibilities thus having less stress. All these factors lead to make the term plans at a cheaper rate and for a longer duration.
Constant premium throughout:
For young policyholders, premiums for term plans is very less; as cheap as Rs. 6,333 p.a. for a 25-year-old non smoker and a policy term of 30 years, which can rise up to Rs 8,192 p.a. if you wait until you turn 30, thus paying more premium. And the bonus to start early is the premium will be same throughout your policy tenure.
Who doesn’t wish to see the entire salary getting credited without any tax deductions? For which, you look out for different options to invest and save on your income tax. The premiums that you pay towards your term insurance would be eligible for tax benefits under Section 80C. The proceeds that your family receives as a death benefit is again tax-free under Section 10 (10D), under the Income Tax Act.
You are a young adult but still you will be having dear ones who are partially or completely dependent on you. Death is unavoidable; a term insurance plan can get you peace of mind to secure your family financially. You would realize it today or tomorrow that it is important for the family’s future. And if it is important for the future, then why delay it?