Life always throws up surprises. You never when what many happen to you and what would happen to your loved ones without you. So it is necessary to think of their future in your absence.
Term Insurance is a type of life insurance in which substantial amount of financial reimbursement to the nominees of the insured incase of unexpected death or accident. This financial support is enough to meet the basic needs of the family members in the absence of the breadwinner.
In the incident of the death of the insured, such a plan will ensure the nominees don’t fall on hard times and are able to meet all financial liabilities. A question which may arise is the right time to invest in a term plan? Read on to know the best time to invest in a term plan to ensure the financial future of your loved ones.
When you’re young:
In your 20s, you are just out of college, starting a new job, and taking little steps to build a financial cushion. You have fewer responsibilities and this is a good time to buy a term plan. They are inexpensive and act as excellent tax saving instrument.
When you’re young, you’re healthy and free of any serious medical conditions. It’s the right time to buy term insurance as premiums are lower. Go for a level term insurance where you pay a pre-set premium amount for the entire term while the coverage increases over the term of the policy. In the end, you pay a lower premium than other policies with similar coverage.
Buying Term Insurance at a young age is the prudent step. As the above paragraphs stressed, it’s easy to buy term insurance thanks to your youth. You would have shelled out higher premiums had you purchased it when you were older.
Another reason as to why it’s ideal to buy term plans when you’re young is you cover your dependents. Many go on to contribute to the household as soon as they begin working and their absence can cause a lot of stress to the household. Buying a term plan early will make sure their loved ones are covered and live without hardships.
You also get to enjoy tax benefits which term plans offer. They offer deductions on the premiums up to INR 1.5 lakh under Section 80C of the IT Act; even the benefits your loved ones receive in case of your demise is exempt from tax. Now that’s a good reason to buy term plans, isn’t it? The younger you buy them, the more you can save on tax.
Today, many insurance companies offer term plans. A good place to buy one would be from Aegon Life. They have some great plans which come with some excellent features which will ensue the wellbeing of your nominees if anything happens to you.