Term insurance is an excellent strategy to safeguard your family's financial future. According to a survey, term insurance plans in India account for around 28 per cent of total life insurance policies issued in India in 2020. Moreover, the protection plan that offers comprehensive coverage can be obtained at a low premium, making it affordable to a significant chunk of the population.
Many individuals, however, are confused about the ideal time to purchase the policy. If you're wondering what the term insurance plan benefit is at your age, keep reading.
When Should You Buy Term Insurance?
As we progress through life, our priorities change based on our needs and long-term aspirations. Similarly, financial liabilities change with age and evolve alongside us.
You may have had one priority in mind when you were younger, but you have a new list of concerns as you get older. Keeping such things in mind, it is critical to buy the best term insurance plan that corresponds to your age and financial condition. Moreover, your policy's duration, life cover, and the need for riders, among other things, are all dependent on careful financial planning.
- In your 20s
This is the point in your life when you have entered the labour force. Your financial responsibilities are minimal, and you are in peak physical condition. Purchasing the best term plan that suits your needs is thus a wise choice at this age.
You can easily purchase a comprehensive plan with a large cover for a modest premium at a young age. The best feature is that the premium is fixed and does not vary with age.
- In your 30s
You are either newly married or a young parent at this phase in your life. Financial obligations, such as a vehicle or home loan servicing, have begun to evolve. This is a pivotal moment to strengthen your family's financial security. If something happens to you, your wife will be saddled with all financial responsibilities, including debt servicing, maintaining a lifestyle, and establishing a corpus to fund your children's education.
As a result of the increase in liabilities, you must obtain enough coverage to safeguard your loved ones from life's uncertainties. Therefore, you may compare and purchase the best term insurance plans in India to guarantee your family's well-being.
- In your 40s and 50s
You have primary financial targets to attain at this point. First, you must pay for your child's higher education and marriage expenses, and you will require a corpus for retirement. Given that the cost of living has risen steadily due to growing inflation, the need for term insurance cannot be overstated at this time.
Any unfavourable event and your family may experience significant financial challenges and fail to accomplish life goals. As a result, a term policy that provides appropriate cover for these indicates the policyholder's financial prudence. Moreover, term insurance tax benefits may act as a tax-savings instrument to reduce your tax obligation.
- After Retirement
Most of your financial liabilities are fulfilled at this point in your life. It is now time to enjoy the fruits of your labour. You may add a few riders to your base plan as the risk of developing life-threatening diseases increases with age. This would assist your spouse in receiving the death benefit if something were to happen to you.
Whatever stage of life you are in, you should examine your insurance needs. It is vital that you obtain a policy to safeguard your family's financial security in the event of an unexpected tragedy, allowing them to live a comfortable and stress-free future.