5 Reasons Why should Buy Term Insurance Plan Early Not Later

A family is life’s most valuable belonging. One desires to provide the prosperity of all the family members at every stage of life. To guarantee they can live without money related obstacles in the insured’s nonappearance, it is critical to make them arranged by getting outstanding amongst other term plans in India.

The opulent term plans in India go about as a monetary pad to help the family in case of an untimely demise.

Listed below are some reasons to buy a term insurance plan early and not later:

1. Low Premium Amount

Understand as such there is no right age to buy a term insurance plan. However, the best can be made when one buys the term plan as early as possible. The early one buys the less premium one will shed as compared to somebody who takes a term plan at 40 or 50 years of age.

Buying a term plan will likewise also cover your parents in case of the insured passes away untimely. Moreover, once an individual starts with family, buying a term insurance plan will anyway become a necessity.

So, do not wait for a long time and buy it earlier so that one pays a lesser premium. One can avail all term insurance benefits at a low premium. Therefore, as soon as one begins to earn, include buying a term plan in the financial portfolio.

2. Save Tax

Term insurance plans not only offers financial security but there is an additional bonus. A term plan provides tax benefits within Section 80 C of the Income Tax Act. The premium cost will be deducted from the income that is taxable with a maximum limit of Rs 1.5 lakh for the insured.

For instance, when the term insurance premium is Rs 10,000 each year then one can obtain tax saving of Rs 3,000 that is 30%, which means that one will only be paying a sum of Rs 7,000 as the premium. The key aspect is that the beneficiary will receive the sum assured that will also be tax exempted within Section 10 (10D).

3. Low Rejection

Mostly, the term plans get rejected when one has a pre-existing ailment. Therefore, if one is looking forward to buying a term insurance plan then buying it at an early age will beneficial as most individuals are free from any major health ailment.

Therefore, the term insurance application will not be rejected and one can avail the same at a lesser price. It is so because the risks are low with the individuals. Possibly one is diagnosed with some illness and at the end; one will pay a high premium on the ground of pre-existing illness.

4. Flexibility

The requirements of each family are different and can easily vary. Possibly some families would require a lump sum amount or some families would wish to obtain the sum assured as the lump sum and perhaps then the balance in equivalent installments. Likewise, the term insurance premiums could also be paid either annually or monthly as per the convenience. The term insurance policy offers flexible payout alternatives.

5. Additional Benefits

The key highlight of any term insurance plan is the death benefit. However, it does offer various additional benefits that prove to be a lifesaver. However, the eligibility to include these additional benefits in the policy depends upon the health and age of the insured. Additional rider options such as waiver of premium, income rider benefit, an accidental death benefit, and so forth will enhance the term insurance plan.

How Early to Buy the Term Insurance Plan?

Karan is 30 years old and is working with a leading MNC in Mumbai. He is in the best of his health with no ailments. Today, he has everything in his life right from a loving family, a good job, and much more.

However, buying a term life insurance plan would be the last thing on his mind. Well, just like there are many others PAN India who do not consider worth buying a term insurance policy. Besides, people also think that buying a term plan can wait for some time.

However, most people do not realize that with time, responsibilities also grow, like tying the nuptial knot or planning a family and so much more. Fulfilling these responsibilities is not an easy task and one also realises that they are not alone and have a family to be taken care of so ensure that a term insurance plan is bought without any further delay.

When one intends to buy the best term insurance plan it should completely align with the financial requirements of the family members. With a plethora of term insurance plans available in the market, it becomes important that one conducts thorough research before one zero downs a term insurance policy so that a well-informed decision is taken.

When is the Right Stage to Buy a Term Plan?

At various phases of life, your money related prerequisites may change. For example, on the off chance that one is youthful, unmarried individual, or has money related duties will vary from that of a wedded one having children and ageing parents.

For the duration of different life stages, you need the best term plan that fills in as a budgetary emotionally supportive network to enable your family to keep up their way of life.

Generally, term plans in India are life insurance products with no survival benefit. In any case, different new-age term plans accompany a few payout alternatives and survival benefits that you can pick dependent on your present life stage.

Wrapping It Up

Regardless of whether one is young or an adult, we always have people in our lives that are dependent upon us.

The only truth in the world of actualities is death. Nobody knows who will die but the least one can do is to be prepared and secure the family members. So that even if one is not around tomorrow the family does not suffer in terms of the finances.

The financial security of the family was important yesterday, today and in the future too. Buy the term insurance plan online and secure the family and give them peace of mind. Do not wait for tomorrow, nothing is more important than the family.

At some point in time, buying a term insurance policy will cross the mind then why not purchase it at an early age than paying more money later. Understand the benefits of buying a term plan and make the smartest wise decision.

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About Geet Sharma

My Name is Geet Sharma Financial Blogger & Founder of Paisabank.org. We are a personal finance blog dedicated to finance & financial planners. The main aim of this blog is to help people to informed about financial decisions.
View all posts by Geet Sharma →

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