Term Plan is Best Financial Decision Before You Turn 30

One of the most common assumptions is that wisdom comes with age! Life in 20’s is considered to be rash, adventurous, exciting and full of risks. It is only in 30’s that a person is expected to settle down, become wise and take important decisions of life. However, you can have all the fun in 20’s and yet be wise by making certain substantial financial decisions, specifically buying term plan in India, which taken at an early stage can prove to be the most prudent financial stand.

Want to know how term plans can be the most significant financial investments you can make?

Following pointers will clear the picture for you:

1) Low on Premiums

Mid 20’s is the age when most people start earning. This is also the age that insurers consider to be extremely less risky from the insurance underwriting point of view. Therefore, the insurance providers offer a massive sum assured at extremely lower premiums for people who are under 30 years of age. You save on premiums, get substantial life cover with the best term insurance plan and secure your future, isn’t it an intelligent decision? Since premiums on term plans don’t change throughout the term of the plan, getting a plan at low premiums for a term of 25-30 years can be a real steal.

2) Safeguard Kids’ Future

After landing with a great job, the next step is to get married and have kids. However, what happens to kids’ education and marriage plans if something happens to you while they are quite young and growing up? The absence of financial resources can make their life tough. However, the proceeds from the death benefits of a term plan can ensure that their education and marriage expenses will be taken care of even in your absence. Compare life   insurance policies to select the best plan that meets your budget and secure your family’s future.

3) Cover Debts

This is the age of loans: home loans, car loans, personal loans, etc. You would not like to put your family in a situation where they have to deal with your loss as well as worry about paying EMIs on various loans. Buying a term plan with a clear objective of paying off the debt if something happens to you is a masterstroke to safeguard your family from unforeseen contingencies. This is what a best term insurance plan is all about!

4) Household Expenses

If you’re the only breadwinner in the family, your responsibility doubles up towards your near and dear ones. With your job, they can maintain a particular kind of lifestyle and your death shouldn’t make them alter it. The money received as part of death benefits from the term plan in India can go a long way in helping your family continue living with dignity till someone else in your family doesn’t start earning.

5) Tax Benefits

The moment you start earning, you have to plan your investments to save tax as well. The best part is that all the tax saving instruments involves some kind of saving so that you earn benefits in the long run. Insurance is no different, and you can claim tax benefits for premiums towards term plans under section 80C of the Income Tax Act.

As you can see, buying a term plan before 30 only offers you gains. All you have to do is spend a little bit of time to study about various products on offer, understand their terms and conditions; compare life insurance policies and select the best one!

Source: http://www.suggestinsurance.com/blogs/term-plan-is-best-financial-decision-before-turn-30/