Life is full of surprises – sometimes good, sometimes bad. And most of the time, we are unprepared for it. We don’t always have a cake to celebrate surprises or money to handle a calamity. With COVID 19, we all saw our worst nightmares turn into reality. And unfortunately, we only realise what we are missing during such tough times. Insurance plans, especially Health, Life and Term Plans, are more valuable than anything now. So you might say who should buy a term insurance plan and when is the right time to buy a term insurance plan?
What is a Term Insurance Plan?
Term insurance is a type of life insurance policy providing coverage for a specified term as specified. Such insurance plans pay a death benefit if the insured person dies during the time period. Term plans are also less expensive when compared to traditional life insurance. The only difference is that a term insurance plan guarantees death benefits from the policy.
When is the right time to buy a term insurance plan?
Insurance is one instrument that most people turn a blind eye to unless something goes wrong. So irrespective of what stage of life you are in, getting a term insurance plan is always a good decision. Whether you just retired, became a parent or just started working, it’s always a great idea to get one. This, in fact, is one of the most common questions asked regarding term insurance plans.
So what is the right time to buy a term insurance plan? The real answer is as early as you can.
In your 20s
If there has to be the most suitable age to buy a term insurance plan, in my opinion, it has to be in your 20s. It’s usually this time when one gets out of college and starts earning. Most individuals plan to get married in their late 20s or 30s, which means they don’t have any added financial obligations. Hence, keeping aside a small sum for the premium is easier.
In your 30s
In case you miss buying it in your 20s, you also have a good chance of getting it in your 30s. While the premiums will be a little higher, you will get all the benefits of a term insurance plan. Also, around this time, your salary would be handsome, and so would be your taxes. Apart from providing the benefits, a term insurance plan also helps you save taxes. I don’t think that investing in term insurance is a waste of money.
Got your term plan?
Term plan comes with numerous benefits, from providing benefits in case of death of the policyholder to helping you reduce your taxes. So term insurance plans also provide critical illness cover and protect you against diseases. And to answer the question, when is the right time to buy a term insurance plan, it’s now. Now, have you got your term insurance plan already? Let me know in the comments below, tweet to me at @atulmaharaj, DM me on Instagram or Get In Touch.
Note: I’m not a professional, and I’m only sharing my views on this. Please check with your financial advisor before you buy a term insurance plan.