Because You Care!
By the time you reach 30, you must be settled in your career and have started your family. This is the best time in one’s life as this is the time when you are earning good and have very fewer responsibilities. Hence, according to most of the financial advisors, it is the best time to save and put the base for a stronger financial life ahead. When financial planning, investment comes is the key to a financially healthy life. However, most of us consider only mutual funds and life insurance policies and Fixed Deposits as investments but there are few more things which can be counted as investment. And among those Term insurance policies are the most important and beneficial one.
A Term Insurance is one which gives you a relief when thinking about ‘what if’ moments.
Buying a term insurance ensure the financial well-being of your family the day when you will not be around them anymore.
However, Buying a Term Insurance in 30’s has Many Advantages
Let’s understand why it is always advised to buy a term insurance in the early 30’s.
- Covers Bigger Risks
Generally, most of us are aware of the benefits of investment in property, gold and equities. But the benefits of term insurance plans are not known to everyone. That too if you start investing early you can save and invest more which can give you better results in the future.
Investment in Mutual Funds and pensions plans helps one to save money for the retired life.
But with a term insurance plan, you cover your much bigger risks such as the risk of death, an unpaid loan, your kid’s higher education, moreover the financial security for your parents and your spouse.
- Low Premiums for Early Start
Insurances cover your risks. Against which you pay premiums. Therefore, the logic is-
The older you are; chances of your unhealthy life is more on an average. As you might have seen people in their 50’s and 60’s are more likely to be unhealthy than people who are in their 30’s. Hence, the insurance companies are at more risk when providing cover to a person who is in his/her 50’s and 60’s. As a result, the premiums for the insurance are more as compared to the policy premium of one who is in 30.
Hence, the younger you are lower will be the premiums charged and the elder you are higher will be the premium charged.
For Example- Raghav is a 30-year old non-smoker working professional. For a sum covered of INR 1 Crore, he will be paying a monthly premium of INR 850. This is actually a great deal. Whereas when Mohanish went for the same amount cover the premium charged for him will be much higher than Raghav, around INR 2000 to INR 3000 monthly.
In addition to this one has to undergo some medical check-up while availing term life insurance, after turning 45.
One can be even refused to be covered if he/she has some disease or when covered the premiums can go to the next level.
Therefore 30’s is the best time to avail a term insurance, you lock lower premiums.
Tax- Saving is also one of the benefits of buying a term insurance policy. We always look for the options where we can save on your payable taxes and having a term insurance is one of them. Premium paid toward your term insurance is a kind of investment and tax deduction can be availed for this under the section 80C. What could be better than this, just one plan to cover you and your family at the same time while you are able to save money as well on your taxes.
- A Term Insurance Plan Covers You Throughout Your Working Life
A term insurance policy covers you till you pay off your loans and all other liabilities. When you have a term insurance policy it covers you for at least the next 30 years. if it for a shorter time span it is not going to help your family.
You need to pay the premiums in your entire working life. In case anything wrong happens to you at a young age then term insurance can help your family a lot. The sum insured is high can hence it will be sufficient for your child’s educations and family’s future.
- Premiums can be Locked-in
With a term insurance, your premiums can be locked in which means your premiums will neither increase nor decrease throughout the tenure. This is only possible with a term insurance as when you go with a health insurance the premiums will keep on increasing with your age. And discussed above when you go for a term insurance at a young age the premiums are low comparatively. Hence, start your term insurance early and lock it at a low premium.
Be responsible and have a term insurance plan before you reach your 30’s to secure the future of your loved ones at a very low price.