A family may experience a significant financial shock if the only provider passes away suddenly. The family’s financial savings won’t be enough to cover all their debts.
To avoid these problems, financially responsible people make use of the benefits of term insurance for their family’s safety and buy it at a young age.
What is the legal age in India to purchase term life insurance policies?
The most frequent query before buying a term plan is the one above. Many believe that the ideal time to buy a term insurance plan is in one’s late 30s, since one needs to be aware of the advantages of doing so early in life.
However, this can be a myth, and seasoned financial advisors consistently advise clients to purchase term insurance at a young age.
Even though it has been common knowledge that not everyone has the same salary, many people may need more money saved up when they work on getting a term plan.
The various age ranges at which people can get the top term insurance plans online have been listed below with that in mind.
1. Early in their 20s:
The ideal time for a person to purchase a term life insurance policy can be in their early 20s. Many people start their careers and graduate from college at this age. Buying term insurance at this age can protect the policyholder’s future and help them develop healthy saving habits.
Additionally, many people today get married in their late 20s or early 30s, and they may not have any additional financial obligations. They may set aside a small sum of money from their earnings to cover the premiums. It might be wise to use an online term insurance premium calculator to know the premium cost based on the required needs.
Remember that the rates for a term plan may be lower the earlier you purchase one. When you buy term life insurance, your premium could be higher for several reasons.
2. Between late 20s and early 30s:
People typically get married in their late 20s or early 30s, beginning a new chapter in their lives. So, the ideal thing for them to do is buy a term life insurance policy to protect the future of their spouse and children.
There are no children and fewer bills, and many are still new to their married lives. People can now readily withdraw money for long-term plans and benefit from several tax breaks under Section 80C of the Income Tax Act of 1961. Keep in mind that there are two different Income Tax regimes. You may receive the benefits based on the regime you choose to go with.
3. Late 30s:
Your parental obligation may increase at this point in your life.
The focus may come on children’s schooling, extracurricular activities, other miscellaneous costs, and medical costs.
Now is the time to think about keeping your family safe and ensuring they have enough money to get by if you pass away due to any unfortunate incident.
With the extra obligation, you must securely insure yourself and your family with a higher protection benefit of term insurance, to pay off your long-term debts.
Why is it preferable to purchase term life insurance early in life?
Term life insurance is a protection strategy people adopt for their own lives. If the person holding the policy passes away, this plan can assure financial security to the policyholder’s family.
Early-term life insurance purchases can be quite advantageous for a variety of reasons. The affordable monthly premiums can be the critical factor as to why people buy these term policies at a young age.
For instance, if a person enrols in a term insurance plan while they are at the age of 20 or 25, they are required to pay a lower premium than those who register for these term policies later in life.
How long should a term life insurance policy be held?
You should carefully check the duration of these plans before buying term life insurance. Longer-term insurance policies have always been preferable to short-term ones because they may assure to protect you and your loved ones until your retirement.
You can use the above-mentioned age ranges as the benchmark age ranges and search for plans that offer coverage for extended periods, since the ages 60 to 65 is the typical retirement age range in our nation.
Use an online term insurance premium calculator to know the detailed premium rates that fit your needs.