Life insurance is not the first thought on the minds of many young people. They see it as a requirement for later in life, for their age allows them to be a bit more open to risks. However, finding the best term insurance plan for yourself is much easier, given the range of options that are open to you, as well as the lower costs associated.

If you are young and wondering why you may need a term plan, you can start by understanding what term insurance is. Term plans are a type of life insurance. These plans offer a life cover and are popular for their lower premiums. If the life assured passes away during the tenure of the plan, their nominee can make a death claim with the insurer and receive a death benefit.

While term insurance plans in India come with a range of additional features, they tend to be purely life insurance and offer a limited term duration. The upper age limit offered by most of these plans is closer to 70-75 years of age. To choose the best term plan for yourself, start by understanding your needs, what you can afford, and then you can shortlist your options. You can also use a term insurance premium calculator to understand what you will need to pay to get the right sum assured for you.

Starting at an early age

It is usually recommended that if you are buying term insurance plans in India, you should do so as early as possible. For most term life plans, the minimum age of eligibility for a life assured is 18 years. Thus, you can buy a plan as young as 18 years of age.

Given that term insurance can cover you till retirement, why is it recommended to buy a policy when you are younger? One of the reasons is the lower premium. Many people sway in favour of term insurance plans in India because of the relatively affordable premiums.

Among the many factors that influence the term life policy premium rates offered to you, an important factor is your age. As you get older, premiums for the term insurance plan tend to get more expensive. Thus, you have to pay more, but will be covered for lesser years.

Another aspect is that some additional features of these plans may also become more expensive, or even inaccessible, for older customers. Thus, buying a term plan earlier in life may give you access to more options.

Starting early and taking care of loans

Most younger people tend to shy away from putting their money into term insurance. They may not completely understand what term insurance is, or they may not recognise the benefits it offers. People in their 20s may be earning lower than their older counterparts, and many will want to save their money for other needs and expenses.

If that is a concern for you, it is essential to recognise that a term plan will only get expensive with age. Moreover, as you grow, so do your responsibilities. To fulfil these, you may rely on loans that you expect to pay off in the next few years.

These loans are liabilities, and in the event of your sudden demise, they may become a burden your family has to bear. In such cases, the best term insurance plans can offer support to the people you leave behind.

Tax Exemptions

Once you start earning and become independent, you will also be required to manage your finances well, to ensure a secured future. A part of this financial planning is putting your money in places that may offer you tax benefits.

Alongside lower premiums, tax benefits on term insurance plans are also a part of the reason why many people opt for these policies. Term insurance tax benefits may extend to premiums as well as death benefits. Consult your financial advisor to understand how you can avail of these benefits.

Choosing the best term plan at an early age may seem overwhelming, but it is a step that can help you secure the future of your family. Doing it younger will not only ensure lower costs but also longer life cover and possibly, more benefits.