Last Updated on Feb 21, 2024 by Tejas Tank

“Fun is like life insurance; the older you get, the more it costs.” – Kin Hubbard

The subject of insurance may not sound exciting but bear with us. You’re only beginning to live your best life, make decisions, and start new endeavours. But wouldn’t it be even better if you could rest easy knowing that whatever occurs, your loved ones are taken care of?

Term insurance can be useful in this situation. It acts as your own private financial bodyguard, ensuring the security of your future and the futures of your loved ones. Don’t put off thinking about insurance until it is too late. You are safeguarding your financial future by purchasing a term insurance policy and making a wise financial decision that will pay off in the long run. While your peers are pouring over crypto in all its glory, trying to ensure that their futures stay financially cosy, we say you take it a step further. Add a life insurance plan to help stabilise your family’s future financial security.


This article explains why purchasing term insurance in your 20s is the ultimate cool-kid move. So buckle up, and let’s get ready to insurance-ify your future!

Buying a term plan when you’re still in your 20s can offer many benefits. Here’s how-

1. Mega low premiums, forever! 

Buying term insurance in your 20s can lock in lower premiums for the length of the policy. The younger and healthier you are, the lower your premiums will be. This way, you can ensure that your insurance costs won’t skyrocket as you age.

2. Easy to buy

Term plan purchases can now be made online through insurance providers and online intermediaries such as Ditto, which makes them simpler than they always were. Policyholders can choose the best plan by comparing offerings from different insurers and evaluating features, benefits, premiums, terms, and conditions. 

Additionally, there are online resources like eligibility and premium calculators that can assist in choosing the appropriate premium according to your age, income, and lifestyle. This makes purchasing a term insurance policy easy and simple.

3. Secure your loved ones 

With term insurance, you can provide financial protection for your dependents in the event of your unexpected demise. Imagine the peace of mind you’ll have knowing that your spouse and children will be taken care of, even if you’re not around. This way, you can focus on living life to the fullest without worrying about the financial future of your loved ones.


4. Enjoy longer-term protection

Term life insurance has affordable premiums and offers protection for a longer period of time. When purchased at age 25, it can provide coverage for almost 50 yrs, but if purchased at age 40, it will only provide coverage for less than 35 yrs. Longer coverage periods guarantee financial security at various phases of life.

5. Tax saver benefit- “Save More, Protect More.” 

Term insurance safeguards your loved ones from life’s unknowns and helps you save big bucks every year. Starting early, you can take advantage of tax savings – the premium paid towards your term insurance policy is tax-free up to Rs. 1.5 lakh as per Section 80(C) under the Income Tax Act, 1961. So, why wait? Invest in term insurance now and watch your savings grow for your family and wallet. It may be time for you to buy yourself a term plan.

Conclusion

Congratulations if you’re in your 20s and still reading this. You’re already ahead of the game if you’re considering getting term insurance. You are a responsible young adult since you are aware of your mortality, which is something that not everyone your age does. If you purchase a term insurance policy today, your loved ones will have a financial safety net if something unforeseen happens. 

Consider it a love letter to your future written in the ink of tranquillity. You’ll not only be able to sleep better at night knowing that they’ll be taken care of, but starting early will also result in lower premiums. Don’t miss this chance to take charge of your financial future and the futures of the people who mean the most to you. So enrol in term insurance today to offer yourself and your loved ones security.

FAQs

What happens if my term insurance policy expires?

Your term insurance policy will expire if you outlast it without paying the death benefit. Due to term insurance’s limited duration of coverage, there will be no payout.

What distinguishes term insurance from other kinds of life insurance policies?

Term insurance only offers a death benefit and insures you for a set amount of time, usually 10, 20, or 30 yrs. Other types of life insurance may have a savings component and provide lifetime coverage.

Can someone with pre-existing medical issues buy term insurance?

Pre-existing medical issues may be covered by term insurance, but it can have exclusions or cost more. Contact a licensed insurance agent or financial advisor for the best options.

Can my term insurance coverage be altered to meet my unique needs?

It may be feasible to tailor a term insurance policy to meet certain requirements, but this will rely on the insurance provider and the policy alternatives they provide. Consider speaking with a seasoned insurance agent or financial counsellor to find out which solutions are ideal for your situation.

Can I switch my term insurance to whole life insurance?

It might be feasible to change a term insurance policy into whole-life coverage. However, this relies on the insurance provider and the plan features. The premium may also change drastically. Plus it is not advisable to go for whole life insurance. Consider speaking with a seasoned insurance agent or financial counsellor to find out which solutions are ideal for your situation.

Shrehith Karkera
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