alexa
Indianmoney.com Missed Call Number
Home Articles Top 5 Reasons To Buy Term Life Insurance In Your 30s

Top 5 Reasons To Buy Term Life Insurance In Your 30s

IndianMoney.com Research Team | Updated On Thursday, July 12,2018, 05:35 PM

3.1 / 5 based on 8 User Reviews

Top 5 Reasons To Buy Term Life Insurance In Your 30s

 

 

 

It is said, Better Late than Never. But, this doesn’t apply everywhere. You should avail a Term Life Insurance Plan, at least in your early 30s. What difference will it make? Let’s find out.

Until you reach the 30s, you may struggle to get a good job. Now, when you hit your 30s, you may enjoy a decent career. You earn well, are in good health and are planning to start a family. You must have also started investing to buy a house or a car. In short, you become more responsible in your 30s.

Want to know more on Term Life Insurance Plans ? We at IndianMoney.com will make it easy for you. Just give us a missed call on 022 6181 6111 to explore our unique Free Advisory Service. IndianMoney.com is not a seller of any financial products. We only provide FREE financial advice/education to ensure that you are not misguided while buying any kind of financial products.

 

You May Also Watch:

 

 

5 Reasons to Buy Term Insurance in Your 30s

 

Responsibility is an on-going process. It never ends. Let’s face it, you need money to survive. Therefore, you are not really responsible until you insure your life. Insuring your life is a selfless act. Availing a term life insurance plan makes sure your family has the financial support in your absence.

So, when should you buy a term life insurance plan? The best age to buy is by the time you turn 30. Do not wait until it’s too late. Buying a term life insurance by the time you turn 30, has great advantages. Read on to find out more:

 

1. A financial product to fall back on:

 

You seek financial advice on which is the best financial avenue to invest your hard-earned money. People may suggest you invest in mutual funds, whole life insurance policies, pension plans, and so on. These investment options help you save for retirement and you should go ahead and invest in one or two of them.

But, having a term life insurance policy is a must. It helps you get protection for a much bigger risk. You may have availed a home loan or planned to send your children abroad for higher studies, plus you have to ensure your family’s financial security in your absence. Achieving all this is possible if you have some kind of financial arrangement like term life insurance.

Term insurance plans cost much lesser than whole life insurance products. Let’s take the worst case scenario:

Say you are 30.  For a sum assured of Rs 1 Crore, a smoker has to pay an annual premium of around Rs 15,000. Monthly premium will be Rs 1,250. If you are earning around Rs 5 Lakhs a year, your premium will be just 3% of your annual income. Is this too much?

 

2. An early bird pays lower premiums. Lock low premiums:

 

Insurance is all about covering risks. You pay premiums so that your risk is covered. Therefore, the logic is simple. The earlier you avail term insurance, lower are the premiums you pay. Still not clear?

The older you grow; chances are you will not be as healthy as you were in your 30s. Thus, the cost of insuring you will be higher, which will be reflected in higher premiums. The younger you are lower will be the premiums charged.

Say, you are a 30-year old non-smoker. For a sum assured of Rs 1 Crore, you will have to pay an annual premium of around Rs 10,000. Monthly premium will be Rs 850. If you are earning around Rs 5 Lakh a year, your premium will be just 2% of your annual income. A great deal again!

One has to undergo a medical check-up while availing term life insurance, after turning 45. Also, you might be refused coverage because of lifestyle-related diseases.

Unlike the premiums on a health insurance policy, the term insurance premium remains the same for the entire term. Therefore, if you avail a term insurance early in life, you lock lower premiums.

 

3. It covers your entire working life:

 

Ideally, a term life insurance policy should cover you till you pay off all your loans, say till you turn 60 or so. Simply put, you may have loans, like home loan, to repay till the age of 55. Therefore, you will need to buy a term life insurance plan, which will cover you for at least 30 years. A shorter duration will not help your family.

You pay premiums for all your working life. God forbid if something was to happen to you in middle age when your kids are too young. You will not have saved enough for them. A term insurance plan will pay the entire sum assured, say Rs 1 Crore, which will be more than enough for them and premiums are almost a nil expense.

 

SEE ALSO: Difference Between Home Loan And Land Loan

 

4. Tax benefit:

 

Term life insurance plans help save taxes. So, term insurance brings you good news! The premium that you pay towards this plan can be claimed as a deduction under Section 80C up to Rs 1.5 Lakhs a year.

 

5. Don’t rely just on employer’s term plan:

 

Loyalty to your employer is great. But, loyalty to the term plan offered by him is foolishness. It is not great to rely only on the term plan offered by your employer. You may not always work with this employer, your entire life. You hit the peak of your career after 35.

To grow, you have to switch jobs and explore better career opportunities. As soon as you switch jobs, the term insurance plan of your former employer will no longer benefit you. Therefore, be wise and get a separate term insurance plan for yourself and family.

 

Conclusion:

 

Make the right decision and avail a term life insurance plan before you hit your 30s. It is the most responsible thing you can do for your family and yourself.

 

Be Wise, Get Rich.

 

Did you find this article useful? You can Rate us
3.1 / 5 based on 8 User Reviews
Article Author

IndianMoney.com Research Team

The research team at IndianMoney.com comprises of certified and experienced professionals who share the company's vision to make every Indian financially literate by equipping every Indian with right and unbiased advice. IndianMoney.com research team provides newsletters, articles, videos and FAQs on various financial products and concepts only to help you make wise financial decisions.

Get It now!