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Benefits of Buying Term Insurance Early

IndianMoney.com Research Team | Posted On Thursday, August 29,2019, 05:24 PM

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Benefits of Buying Term Insurance Early

 

 

Availing term insurance early is a wise decision and has several benefits. Let’s first understand the concept of term insurance. It is a very simple form of life insurance and offers coverage for a fixed tenure. If the insured dies within the policy tenure, the insurer pays the death benefit to the beneficial nominees.    

The term plan has no survival benefits. What is the right age to buy term life plan? Is it 20 or 30 or 40 or 60 years? Considering its importance, if you are the sole breadwinner, buy term life plans Right Now. But, buying a term insurance plan at an early age, say 23, is more beneficial than buying it late. Why? Here are the reasons.

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Benefits of Buying Term Insurance Early​

Low Premium

Do not wait for the best time to buy term insurance. Buy it as soon as possible. If you are in the 20s, insurers offer term life plans at lower premiums. If you are 24 and a non-smoker, you get a term insurance plan of Rs 1 Crore at a premium of just Rs 550 a month.

When you cross 30, you have to pay a monthly premium of over Rs 1,000 for the same cover. Younger policy holders pay lower premiums vis-a-vis older policy buyers as health problems rise with age.

See Also: Term Insurance For Indians

Live Stress-Free

If you are the sole breadwinner of the family, buy term insurance plan at an early age. Do you think you are far away from a heart attack in your 20s? You are not if you lead a hectic lifestyle. Therefore, you can live stress-free when you buy term insurance at an early age. Your family is financially safe in your absence.

Let’s say you have bought a brand new car today by availing a car loan. There’s also a home loan and a personal loan to repay. If you are struggling with the EMIs, how will your family repay the loans when there’s no income on an untoward demise? This is why you need a term life insurance plan.

Cost-Effectiveness

Term life plans offer high cover at low premiums. They are the cheapest among life insurance plans. They offer the maximum risk protection and are a must have. As they are offered at low premiums, you save a lot and are free to invest in whichever financial instrument you please, based on risk profile.

See Also: 10 Best Things About Term Insurance

Save Taxes

Saving taxes is a part of financial planning. There are several ways to minimize tax liabilities. Buying term insurance is one of the ways to save on taxes. You get tax deduction on term life insurance premiums up to Rs 1.5 Lakhs a year under Section 80C. Death benefits paid to nominees are tax free.

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