Short Term Disability Insurance - Short term disability insurance is a type of insurance plan designed to compensate for the lost income due to a disability
Buy a term plan and secure your family
In case you have been thinking when would be the most suitable time for buying a term policy, then, keep reading further in order to know when to buy term insurance as per your needs.
Hands down, these are the most crucial years of your life, especially when you are the starting point of your career. You do not have a lot of responsibilities and things to stress about. But, you may have some hefty debts to clear, such as your education loan.
If unfortunately, something happens to you at this age, a term insurance plan will help in making repayment of your debts. Otherwise, the burden of all your debts will fall on the shoulders of your parents after your demise.
The best part of purchasing a term policy at this stage of life is the insurance prices. You will get economical and affordable rates at this age because the risk to your life is quite low. Simply put, the lesser your age, the more economical would be your plan.
This is the stage of life when most of you would be married and have kids. The intensity of your responsibilities rise. You not just start stressing about safeguarding the future of your kid but also worry about other financial burdens such as auto loans, home loans, and various other long-term debts.
For some of you, your parents will also become dependent on you at this age. This may further add to your expenses. Even though you will be earning more as compared to your 20s and would be more stable now, your living standard would have improved, and therefore, your expenses would have spiraled.
This is the stage of life when you must seriously think about getting term insurance for protecting the financial future of your family even after your death. In fact, opting for a plan with an option of monthly income would be the best. In this case, the lump-sum payout can be used for making payment of the debts (if any). And, the payouts received monthly can help in taking care of the daily expenses of the family.
When you are in your 40s, generally, your long-term debts such as home loans and car loans are pretty much covered. But, the responsibilities of the higher education of your kids, the health of your old parents, your planning for retirement, and more need a good financial cover.
Therefore, you will need larger financial protection for securing the future of your family. It is recommended that you buy a term plan that comes with a larger cover.
If you have crossed 50, the premium on the term plan will be the highest for you at this stage of life. You may probably find it to be the double of what was offered to you at your 40s. The premium prices at this age are not dependent upon whether you smoke or not.
However, if you are the only breadwinner for your family and have a large pile of financial debts to clear, then it is advisable that you ignore the rates and still buy term insurance.
Here are a few points that you should also keep in mind-
The Bottom Line!
“When to buy term insurance?”
This is a common doubt that runs in the minds of policy buyers. However, we have tried to answer it for you by explaining the factors that may affect your decision and the policy prices at different age groups in life. However, one thing is for sure, that term life insurance is a must-have. Shop around for the best term plan that sufficiently secures your family financially that too at an economical price.