Buy a term plan and secure your family
This is where term insurance comes into the picture. Term insurance plan is a type of life insurance policy in which the sum assured is paid by the insurer to the family members in an event of the premature death of the insured during the policy tenure. This substantial amount of financial reimbursement is sufficient to fulfill the basic financial requirements of the family members in the absence of the sole breadwinner. In an event of the demise of the policyholder, the term plan ensures that the beneficiary(s) don’t fall in financial crises and able to meet all of their financial liabilities.
But now the question arises in many people’s minds that when is the right to buy term insurance? Well, this is the most valid question since not all people are well-aware of the importance of early investments in term life insurance plan. The majority of the people believe that term plans should be bought after the age of 40 as they are well-settled by this time.
But the answer to when is the right to buy term insurance is that you should opt for it as earlier as early it is possible in order to reap more benefits. If you opt for it at a younger age which is the most ideal time to buy term insurance, the premium payout is lesser. In addition to this, investing in it early is better because when you are young, there are lesser diseases that trouble you. The older you grow, you are at great risk to affect with more diseases and which is why the premium also increases.
Now, let’s discuss the importance of having term insurance with different stages of your life.
In your early 20s, you are just college pass out, probably starting a new job, and taking steps to build your financial portfolio. At this time of age, most of the people have less responsibilities and their expenses are much less therefore it is an ideal time to buy term insurance. Term plan at this point of age is much affordable since premiums are lesser for young people.
Also, as mentioned earlier, when you are young, you are healthy and free of any critical illness. Thus, it is the best time to purchase a term plan. You can opt for a level term plan where you pay a pre-set premium amount for the whole term while the insurance coverage increases over the tenure of the term policy. This is how you pay a low premium as compared to other policies with similar insurance coverage.
This is a very crucial time of your life as you have just started or probably will start a new chapter in your life. For newly married couples, this is an ideal time to buy term insurance to ensure the financial protection of your partner and the family that is sure to grow within a few years. An apt term insurance plan will take care of the financial requirements of your loved ones in your absence so that they can live peacefully without taking a financial burden.
As you grow older, your responsibility also grows as a child or parent. This is a time when you understand that you are not alone and there are some people in your family who are financially dependent on you. There are people you need to take care of even in your absence – your parents, your spouse, your children, and other loved ones.
Children’s higher education, medical expenses, mortgages, home loans, car loans, and other debts take the spotlight. This is the time when you actually give your attention and think of securing your loved ones financially when you are not around. Well, an apt term insurance plan helps you in fulfilling your responsibility beforehand so that you can live with complete peace of mind by knowing that your family members are financially protected and they will not have to go through financial crises even in your absence.
Well, opting for a term life insurance policy solely depends on an individual’s requirement and his/her personal choice. But if we talk about the ideal time of purchasing a term plan, then we would highly suggest to buy term insurance as early as it is possible. Reason being, it is cheaper when compared to later stages in your life. Also, there are possibilities that insurers may charge a high premium or could even decline your policy once you cross the age of 35 or 40 since you are at great risk of having serious medical illnesses. So, buy term insurance at the early stage of life in order to offer financial protection to your loved ones in your absence.