What is the Best Age to Buy Term Insurance Plan in India

Best Age to Buy a Term Insurance Plan in India 2021

In an age of uncertainty where every person works hard to save for future contingencies, investing in a financial instrument that guarantees the ultimate security in the event of sudden death becomes essential. This explains the rising importance of term insurance as interested customers log on to the sites of life insurance companies in India before making their choice of term insurance plans.

While many people realize the need to include term insurance plans in their investment portfolio, many of them are unsure about when they should invest in the same. Many people misconstrue the value of the assets they have and, hence, postpone the idea of investing in term insurance. Also, many people deem buying term insurance as just another unnecessary expenditure. This is because most term insurance plans do not yield anything if the policyholder survives the policy period. However, the sum assured that the insurance company promises to hand over to the loved ones of the policyholder goes a long way in taking care of their contingent financial liabilities in the future.

Why Should You Buy Term Insurance Early?

Though the effectiveness and importance of term insurance continue to remain the same, irrespective of when you pay for it, buying it early in life has its own set of benefits. Listed following are reasons that will enable you to understand why you must consider buying term insurance in your early 30s. These include:-

Rising Premium Charges with Increasing Age

Young people are less likely to fall ill. This also means that young people are less likely to be diagnosed with chronic disorders including diabetes, cancer, heart problems or other lifestyle diseases. Since the risk associated with their lives is much lower, insurance companies feel less compelled to charge high premium charges to cover the lesser quantum of risk involved. This explains why insurance companies in India charge fewer premiums from customers who are young in age. Many customers who apply for term insurance plans later after they are detected with some major health problem or crucial illness. This may result in their term insurance plans getting rejected altogether. Alternatively, customers may have to shell out a greater amount to pay premiums as insurance companies charge extra on grounds of pre-existing health disorders.

Securing the Future of Dependents

The sudden death of the family’s breadwinner may result in acute financial distress. The death payouts given by the insurance company makes up for the loss of income, thus, easing the feeling of sudden financial strain on the family. Also, it is important to start investing money early in life, which includes paying for term insurance too. The sum assured determined at the time of buying the policy can go a long way in looking after the long-term interests of your family and loved ones. Also, many insurance companies promise an additional monthly payout option, which helps to look after the nominee’s daily expenses.

A Stress-Free Life

Financial worries may take an adverse toll on your health. It’s right to be worried about who look after your family in your absence. However, prudent people prefer to opt for buying term insurance plans that take away the burden of saving enough for contingent liabilities in lieu of nominal premium payments.

Tax Benefits

What if an investment plan could secure you financially in addition to extending the necessary tax benefits. Well, one may wonder if this is possible. However, buying term insurance plans ensures dual tax benefits. While the policyholder avails deductions on the premiums paid under Section 80C, the death benefits are exempt from tax under Section 10(10D) of the Income Tax Act.

Conclusive Argument About Best Age to Buy Term Insurance Plans

Term insurance is an imperative investment that most people must consider including in their investment portfolio. The most essential kind of insurance policy that guarantees peace of mind at nominal charges in addition to availing necessary tax benefits, term insurance is a must in today life. Moreover, some insurance companies in India allow you to enhance the benefits of your term insurance plan by allowing you to pay for add-on covers too.