Here's Why Your 20s Are Not Considered Early to Buy a Term Plan

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  | Published: 18 April 2020 | Last Updated On: 08 February 2021

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In today’s era, the younger generation is more informed and smarter than what the generation was like a few decades ago. They are aware of their responsibilities and are independent from quite a young age and hence, they also like to plan well in advance for their finances. One of the most important steps in this path is getting a life insurance policy that will provide a financial shield for the future of their loved ones in case of their absence.

A term insurance plan is the most simple and cheapest type of life insurance in the market that protects the future of your loved ones financially in an event of your untimely demise. With a term plan, you are provided with coverage for the policy tenure chosen by you, and in case you pass away during the term of your policy, your beneficiaries are given the sum assured in the form of a payout.

It is advised more than often to get a term plan early in your life. At this point, you might think to yourself – “But, why?!” Hang on and read along to know why your 20s are not considered to be very early to buy a term insurance plan.

The Premium Charged is Cheaper When You’re Young and Healthy

When you are healthy and in the best of your health, the premium charged on a term insurance plan for you will be lesser as compared to what is charged to an older person who may be having pre-existing ailments. Therefore, it is, in all cases, advised to lock-in on that low premium amount by buying a term plan at a younger age and enjoying the benefits it offers in the longer run.

Ease of Purchasing a Term Plan

With the rise of technology, there are numerous tools available for one to use in the process of purchasing a term plan. One of the many tools in the market is the term insurance calculator. This is an online tool that allows you to determine the premium charges that you are likely to be liable to pay based on various factors such as the sum assured you choose, income, age, and lifestyle habits. Therefore, you can easily compare the various term insurance plans available online and choose the one that suits your needs and requirements the best, just with the click of a button.

Coverage For a Longer Period of Time

Your 20s are a good age to buy a term insurance plan because you are provided with coverage for a longer span of time. You have the option to choose the tenure for which you would like your term plan to cover you while ensuring that your loved ones are going to stay financial secure, all at nominal premium charges.

Protection of Your Dependents

When we are in our 20s, most of us do not have a lot of dependents or beneficiaries. However, if you are the sole income earner of your family and you have parents that depend on your stream of income for their daily financial needs, then you must absolutely, without any further ado, purchase a term insurance plan to secure the financial future of your family members.

In case of an unfortunate scenario of your untimely demise, your dependents can make use of the sum assured that they receive in the form of a lump sum payout, to finance any sort of the future living expenses that they may have, or any loans that might be due, or any other expenses that may occur.  Hence, you can be at peace knowing that your dear ones are financially taken care of.

The Bottom Line

While none of us can avoid the unfortunate yet the ultimate truth of life – death, we can surely prepare ourselves in the best possible manner so that our family members do not have to face any scenario wherein they suffer in the absence of the breadwinner.

Therefore, you should properly compare the options of a term insurance plan in the market and opt for the one that suits the requirements of the family members. This sum assured should cover them well enough for them to sustain their current lifestyle even if you are not around.