When you are in your early 20s, insurance is probably the last thing that bothers you. This is quite understandable as right now you are young and do not have too many responsibilities. The purpose of this article is to remind you that you will have many duties towards your family down the line. You should not be scared or worried about these now. However, it is also important to start preparing for the future at the earliest.
A term insurance plan is one of the policies that you need right away. This is a great investment to help you cope with the uncertainties of life. There are various great benefits of buying a term plan early. Some of these are explained below.
- You get it for an affordable price
One of the things that determine the price of the term plan is your current health condition. When you are under 25 years, you are in the pink of your health. Although you never know when you can be diagnosed with a critical illness, the chances are that it is far away from you. For this reason, insurance companies offer more affordable premiums to younger people.
If you are in your early 20s and do not smoke, you can get a cover of approximately INR 1 crore for a monthly premium of around INR 500. The same coverage will cost you double in your 30s. Hence, it is always the smartest idea to buy online term plan early.
- It is flexible
Buying the term insurance plan early offers a lot of flexibility. It is understandable if you are a little confused about your finances right now. It takes some time to figure out what to do with your money. With a term plan, you will have the flexibility to stop the payments and terminate the policy as per your convenience. Some insurance companies allow the policyholders to renew the plan later. These flexibilities surely make your job easier.
- It helps your family to deal with your loans
The main purpose of a term plan is to provide financial security to the policyholder’s family if he or she passes away before the end of the insurance tenure. A person under 25-years might not have too many financial liabilities, but they might still have loans to pay. Imagine someone buys a new bike and has to repay the loans for the next five years. Now, in case of an unfortunate death, their family has to repay the remaining loan amount. This can be an added burden, along with the pain of losing a loved one. However, if he or she had a term plan then the death benefit could be used by the family to repay the loan easily.
- Premiums are locked
The premium of a term plan is locked. This means, once you buy the policy, you will have to pay the same amount of premium until the end of the term. As you get a cheaper premium when you are young, buying the term plan before turning 25 will ensure that you pay a low premium even when you are older.
Now that you understand why you need to buy the policy early, look for an online term insurance that meets your requirements and apply for it without wasting any time
