A term insurance plan is a pure life insurance product which provides coverage for a fixed term/ period of time. It offers a fixed sum assured to the nominee in the event of the death of the policyholder if death occurs within the policy term. It is advisable to purchase a 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 such responsibility, once you take a term plan you are protecting yourself from some of the responsibilities you had on yourself.
Reasons to buy an insurance policy when you are young
Younger is Cheaper:
If you think buying an insurance plan 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 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. 500 per month for a 25-year-old, which can rise up to Rs. 1080 if you wait until your mid 30’s, thus paying more premium. And the bonus to start early is the premium will be the same throughout your 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 your family receives as a death benefit is tax-free under Section 10 (10D).
Being a young adult and at the start of your career, investing in a life insurance would be a wise decision you ever made. Though death is unavoidable, insurance can get you peace of mind to secure your family financially in your absence.