As we know, life insurance should be done by everyone. Because in this the future of the whole family gets secured. But at this age, insurance should be made necessary because getting insurance at this age not only gives more interest, partner and many more benefits are available. Know full details.
Experts believe: Experts believe, with age, premium also increases as you have more liabilities to pay.
Hence, term insurance should be bought at an early age of 28 to 30 years, to reap the benefits like lower premiums, tax discounts and adding new add-ons.
Fulfilling your responsibility by getting insurance
Term Life Insurance: Taking term life insurance is a big step towards fulfilling your responsibilities. A term life insurance policy gives financial security to your family.
Term plans are helpful in meeting your financial responsibilities in case you are not there due to any reason. Experts believe that it is better to take a term plan at the beginning of the job or at an early age. There are many benefits of buying a term life insurance plan at the age of 28-30.
According to experts
Says Sajja Praveen Choudhary, Business Head (Term Life Insurance), Policybazaar.com, “It is always suggested to buy a term life insurance plan at an early age because it is pocket friendly.
Because as your age increases, more responsibilities come upon you and at that time term life cover becomes a necessity. With age, the premium also increases as you have more liabilities to pay. Hence term insurance should be bought at an early age of 28 to 30 years, to reap the benefits like low premium, tax discount and adding new add-ons.
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Know about premium policy
A very common question among people planning to buy a term life insurance plan is what is the right age to buy term insurance, says Chowdhary. Though there is no specific age to buy a term plan, but like health insurance – the sooner you buy it, the better.
In simple words, if you want to get all the benefits of term life insurance at a low premium, it is suggested to buy a term plan as soon as you start earning.
Know about Rejection ratio
Chowdhary says, if you are already suffering from a serious illness, then the chances of your term life insurance application being rejected are very high. Usually a person is exposed to a serious disease at an older age.
Hence it is advised to buy a term life insurance plan when you are in your best health condition, which is mostly at a young age. The low rejection ratio in young age is due to the least risk associated with those individuals who do not have any medical history. Most insurance companies refuse to offer term life insurance cover to people with pre-existing diseases. However, some insurance companies offer term plans at higher premiums.
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Save tax like this by taking a policy
Sajja Praveen Choudhary says, In addition to financial security to your dependents in case of your sudden death, a term life insurance policy also gives you survival benefits. The premium you pay for your term life insurance plan is eligible for tax benefit under Section 80C of the Income Tax Act.
The limit for availing tax benefit in this is up to Rs 1.5 lakh. For example, if you buy a term life insurance policy with an annual premium of Rs 12,000, you can get 30 per cent tax discount i.e. tax savings of Rs 3,600. This means that you are technically paying an annual premium of only Rs.8,400. The most important thing in the form of annual premium is that the sum assured received by your dependents in case of your death is also tax free under section 10(10)D of the Income Tax Act.
Add-ons will also benefit
According to experts, apart from providing financial security for your dependents in case of sudden death, term insurance is beneficial in many other cases as well, though you need to buy the relevant add-ons to avail those benefits.
Provided, you must know that the insurance company issues add-ons to the policyholder only after considering the current age and health condition. A person who is young and physically fit can easily buy a basic term life insurance plan with key riders like Waiver of Premium, Income Benefit Rider, Critical Illness Rider and Accidental Death Benefit Rider.
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