Many people hesitate to buy term insurance when they are young mainly because they believe insurance is unnecessary. But life can be unpredictable, and you can never know when a term insurance plan can come to your rescue.
If something happens to you, a term plan guarantees a death benefit to your family. Unfortunate circumstances can come at any age. Hence even if you’re in your 30s, buying a term plan is a good idea.
Let us look at five reasons to buy term insurance in your 30s
1. Your Family Gets Financial Security
Most of us get married and start our families in our early 30s. And this is the perfect time to secure our families’ financial future. When you buy term insurance in your 30s, you ensure that if anything unfortunate happens to you, your family will receive the life cover, which they can use for their future expenses.
Your family will face expenses like college fees, wedding costs, medical costs and the usual day to day expenses that can be taken care of with the death benefit. Additionally, you may leave some unpaid loans that can be a burden on your family. The death benefit can also be used to pay off all your existing debts.
2. The Premiums are Affordable
It is a fact that term insurance premiums are affordable if you’re in your 30s, owing to lesser responsibilities and liabilities. And once you buy a term plan, the premium amount remains constant throughout the tenure.
If you purchase term plans when you grow older, the insurance premiums tend to go higher since your liabilities and responsibilities will also increase. Hence, it is better to buy term insurance in your 30s as your expense for such a vital protection plan would be less.
3. You’ll Get a Larger Life Cover
Another advantage of buying term insurance at a young age is that you stand to get a much larger life cover. If you wait till the 40s or 50s to purchase term insurance, the life cover can be less because of age. In your 30s, you can expect a life cover 15-20 times your annual income, whereas later, you may get a life cover that is only 5-10 times your yearly income.
4. You Can Add Riders
Riders are additional benefits on top of your term plan. The riders cover risks that are not covered in your standard policy in exchange for an additional premium. When you are in your 30s, the cost of riders is relatively less, and they’re easier to get. For example, buying a critical illness rider at 50 years of age may be costlier since critical illnesses are more likely to occur when you’re older.
5. Term Insurance Saves Tax
Term plan premiums are tax-deductible under Section 80C, whereas the death benefit is tax-free under Section 10(10D). By purchasing insurance at a young age, you can save on income tax right from the beginning and save a significant amount on taxes every year. The saved amount can prove to be extremely useful for your family’s financial stability and extra expenses.
The above points clearly illustrate that buying term insurance in your 30s is beneficial. So if you’re still young, go ahead and buy term insurance to protect your family’s future.
