Young Indians are recommended to buy term insurance by the age of 30 instead of delaying further. By the time you have attained 30 years, you have already become a responsible person. Also, it is expected that you would have a great career and a decent pay package. So, financially, you are a bit stable and planning to get married too. It might be that recently, you have purchased a bike, and sooner you will invest in property too. But you haven’t still opted for the most important thing, and that is term insurance. Check out these five reasons specifying the need to buy life insurance early on.
Low premium and more extensive coverage
By purchasing term insurance, you are securing the financial position of your family members at a minimal cost. With the passing years, your age increases and so does the premium amount. That’s why the earning family member is advised to have the insurance sooner. It will help your family to lead a better life in case of uncertain events. An individual can buy term insurance approximately 20 times his or her annual income.
Giving financial stability
The significant reason to opt for term insurance is that it offers financial stability when there is a breadwinner’s death. The family can still meet its daily expenses with the coverage when you are no longer present to take care of their needs. If you haven’t taken up insurance yet, it will be tough for your loved ones to survive. Term insurance gives the total amount at the person’s death, and the family can continue meeting the needs.
Availing of the tax perks
Earning even a single penny is tough, so people try their best and look for ways to reduce taxes. The premium paid can also be considered being a tax-saving investment. Under Section 10 (10D) and Section 80C, the tax benefits are applicable when you opt for term insurance. In a way, it helps save on taxes, which is a valid reason to opt for the scheme.
Securing the future
The earning member in a family has some obligations and responsibilities towards parents or children. But in unfortunate situations, if you lose your life, you cannot meet the duties anymore. But with term insurance, you can prepare a plan on how to meet the needs in the future. It will help them to lead a life without begging for money.
Some term life insurance also comes with a few additional perks, like riders with death coverage. It includes critical illness coverage, accidental coverage, return of premiums, etc., at an affordable price. It ensures you can take advantage to the fullest. So, before you opt for it, look at the relevant details stated by the insurance provider.
Opt for a term insurance
A suitable way to find term insurance is to search online and compare them. Check out the plans offered by the leading insurance companies only as they have several plans. Life is unpredictable, so to ensure your family meets the demands in your absence, opt for it.