As a young individual, you would be full of hope, energy, and optimism. It is that time when you are setting a course for a prosperous professional and personal life. You might have probably even landed your first job and have just a few responsibilities to shoulder. During the initial days of your career, the newly attained financial independence might seem enough to suffice your wants and needs. Savings. At this stage, life might seem carefree. And you might be on the lookout for various milestones. Getting a life insurance might not be among your top priorities. However, with time, your responsibilities will increase, and so will your needs to have additional savings. Thus, it’s imperative to set a firm foundation by investing in a term insurance plan. It’s wise to buy term insurance as that might be the first of many crucial moves that will chart your financial future. Term insurance in India provides many benefits. They are:
Provides a sense of long term financial security
At the onset of your career, buying a term insurance plan might seem daunting and unnecessary. However, don’t forget that these plans help you become familiarised with the concept of long-term financial planning and security. Further, these online term insurance policies provide the flexibility to increase (or decrease) the premium upon reaching vital milestones in your life.
Helps you save on tax
When you earn that hard-earned money, you strive not to let it go down the drain. As a result, you try to save as much as you can, even on taxes. Plus, when you have to take care of your loved ones, the pressure of increasing your savings increases. A term insurance plan not only safeguards the future of your family when you are not around, but it also provides you with tax benefits. The premiums paid towards term insurance plans are tax-deductible for up to Rs1.5 Lakhs under Section 80C of the Income Tax Act, 1961.
Offers you several health benefits
Change in lifestyles attracts several health problems as well. Factors such as frequent drinking or smoking, irregular working hours, improper sleep routines, eating habits, etc. are responsible for several health complications that include heart and kidney issues, cancer, etc. A term insurance plan takes care of your future medical emergencies covered under the programe you choose. This helps to lessen the financial and emotional burden on your parents or partner. Thus, a term insurance plan takes care of your well being.
Makes a financial safety net for your loved ones
Your financial circumstances change when you choose to marry and start a family. Your priorities change and the most critical factor in your life is to take care of your family, at all costs. It’s not an exaggeration to say that there are no stones left unturned when it comes to protecting your loved ones. In such a scenario, it is highly relevant that you take care of them financially as well. If some unfortunate situation takes place, and you are not there to take care of your family, you would be at peace realising that your family is well looked after. Thus, it is deemed to have been beneficial for you and your family if you start early with the mot suited term insurance plan.
But why should you start early?
When you are in your 20s, you tend to be quite fit and healthy. Hence, your age plays a vital role in determining your term insurance premium. The earlier you start, the lesser is your premium paid towards term insurance. And since the premiums for your term insurance typically remains constant throughout the tenure, it’s wise to start earlier to pay lesser premiums.
You can use a term insurance calculator to compute the investment amount needed under various term insurance plans. Remember, the earlier you start with your term insurance plans, the lesser you pay for your premiums. If you have missed the early bus, you can start right where you are.