A term insurance plan provides financial protection to the policyholder’s family in case of his/her unfortunate death. The low rate of premiums and freedom to select the insurance’s tenure are the reasons why many prefer a term insurance policy.
Safeguarding yourself against death is not possible. One can delay but can never deny death. Death is inevitable, and it can give the family and friends of the deceased an emotional setback for a lifetime. In such tough times, the last thing a person wants to be responsible for is the financial crisis of his/her loved ones. To avoid that, the solution is life insurance.
Nowadays, many individuals invest in a good life insurance plan depending on their requirements and budget. Term insurance plan is one plan that comes with the least rate of premiums. However, there is no specific age to buy a term insurance plan as it offers benefits to each age group. Here are some advantages of term insurance based on different age groups.
In the 20s – This is the time when you complete your education and start your professional career. Majorly people in this age group have very few responsibilities and lesser issues to worry about. Although, a few might have debts to be paid off like an education loan. At this young age, you might not feel an urge to invest in a term insurance plan, but it is always good to be ready for unfortunate events. In case you suffer any unfortunate event, a term insurance plan will help your parents to pay off your debts without any financial burden. Also, it is the cheapest insurance plan available. Hence, you can easily pay the premiums no matter what your salary is.
In the 30s – If you are in your 30s, you will most likely have a stable income. Hence, you would prefer to get married. This means your responsibilities increase manifolds as now you will have to fulfil the needs of your better half, children and parents in case they are dependent on you. Whether you are the breadwinner of your family or not, you must make sure your family suffers no financial setback in your absence. Hence, you must buy a good term insurance plan keeping in mind your family’s current and future requirements.
In the 40s – If you are in your 40s, you might be paying off various debts like a car loan, home loan, etc. If anything happens to you, your family will have to suffer financial instability and the burden of paying off debts. A sound term insurance plan bought keeping in mind all this can save them from many financial issues.
After the 50s – If you are in your 50s, you will be paying more than double the premiums that you are supposed to pay in your 40s. This is irrespective of whether you are a smoker or a non-smoker. Despite the high premiums, we suggest you buy a term insurance plan with adequate coverage as health risks are higher after this age.