A famous couplet by poet Kabir goes like this: “Do tomorrow’s task today and today’s task now. Disaster may strike in an instant and then you may repent.” This adage is very true when it comes to life insurance, especially for a term plan. When you can buy a term plan today, do not postpone it for tomorrow.
A term plan
If you are in your early or mid-twenties and meaning to secure your future, buy a term plan today. Term plan is a pure, traditional insurance plan that will provide your family with a pay-out in the event of your unfortunate demise. There are two reasons for covering yourself with a term plan as early as possible.
Two reasons for buying a term plan today
One, as poet Kabir puts it; life may change in an instant. If you procrastinate buying a term plan, your family may repent it if tragedy strikes and you meet with an unfortunate and untimely demise. They will be left with a disturbed present and an uncertain future.
Secondly, it is a good idea to buy a term plan when a person is young as the premium is lower than that one may have to pay when he/she is older. These plans are cheaper when you are young and give your family the security of income, especially if you are the lone breadwinner in the family. With advancing age, the premium for the same sum assured increases progressively. It’s likely that you’ll get a better deal today than when you are 5 years older. Your premiums are likely to be lower and your cover higher.
For a sum assured of 1 crore, if the premium is 6000 for a 40 year period when you buy it at 25, the same premium may go up to 11000 for the same term when you are buying it at 40.
Don’t wait to buy a term plan.
With advancing age, career progression is generally the norm which gives you more disposable income at your hand with the mental security of having insured your near & dear ones against any unexpected event. Today, you can benefit from the low premium that you need to pay for the same sum assured as compared to 5 years down the line. Remember, life is what happens when you are busy making other plans. So, before life has other plans, buy a Mylife+ Term plan.3