5 Reasons Why You Must Buy Term Plan Before Turning 30
Life is unpredictable. One minute everything is going well and things are under your control. The next minute, you realize everything is slipping through your fingers. Well, there isn’t much you can do to change the strange ways of life, but you can surely be prepared for the future and do everything possible to keep your loved ones protected.
Term insurance can be your best choice, if you want to give your family the security they deserve. Generally, people plan on buying term insurance at a later stage in life because when you are young, the possibility of death seems far-fetched. But, it is advisable to buy this plan before you hit your 30s. This is because, when you buy term plan early in your life, you receive a number of benefits. Some of them are listed below:
- Low Premiums: When you apply for a term plan, the insurance company will conduct medical examinations. Based on the results, your policy may or may not get approved. However, before the age of 30, the chances of your policy being denied are much less as you are bound to be in good health and progressing financially. Plus, if you purchase it early on, it is likely that you will be able to buy it for 3 times less than the price you will have to pay when you’re 40.
- Tax Benefits: Everyone is always looking out for ways and means to save their income tax by investing in plans and schemes that can help them channelise their money constructively. Term insurance is one such policy that provides dual tax benefits. Here, the premiums paid and the benefits earned are both tax-free, thereby, giving you a good chance to build your wealth over a period of time.
- Security for Loans: A term plan can help serve as security for any loans you may take. In case of death of the insured, the proceeds received from your term plan can help pay any outstanding debt your family may be faced with.
- Financial Security: You can never predict the future. Therefore, it is wise to be prepared emotionally and financially. With the help of term plan, you can gift your loved ones financial security and help them lead a secured life.
- Premium Lock: Term plan offers you a chance to lock your premium amount. This will ensure that you pay the same amount throughout, instead of paying a higher premium every progressive year.
Despite knowing the importance and the right age to buy term plan, youngsters delay in buying it. As a result, they end up paying more and receive less benefits. So, before you decide to postpone this to another day, ask yourself, “is it a wise decision or not?”
If you’re ready to secure your family’s financial future with a good online term plan, click here.