Buying a term insurance plan is indeed one of the wisest financial decisions a young professional can make. It provides peace of mind by ensuring your family’s financial security, even in your absence. Ideally, purchasing term insurance in your 20s or 30s is the best time to lock in lower premiums and greater benefits.
The earlier you buy, the more advantages you secure. Let’s understand why term insurance is a must-have for every young professional.
What is a Term Insurance Plan ?
Term insurance plan is simply a shield which will offer your family financial protection in case of your untimely demise. Term insurance plan does not have maturity benefits like investment-related policies.
Instead, you get large financial cover at an affordable premium. Young professionals looking for a reliable protection plan can get a ₹1 crore term insurance plan.
Who Really Needs a Term Insurance Plan ?
A term life insurance plan is an absolute must for anyone who is the primary breadwinner of their family. In case the unforeseen happens, your loved ones will receive a financial payout that can be used to manage daily expenses, maintain their standard of living, and pay off existing liabilities.
What Are the Benefits of Buying a Term Insurance Plan Early ?
Lesser Premium : Insurance premiums are directly linked to age and health. The younger and healthier you are, the lower the premiums you pay for a term insurance plan.
More sum assured : Buying a term plan early allows you to get a higher sum assured, as insurance companies consider factors like your young age, good health, and future earning potential. This means you can secure a larger financial cover at a comparatively lower premium.
Longer Coverage Period – Buying term insurance early in life allows you to enjoy a longer coverage tenure. You can also extend the policy duration as required, ensuring financial protection for your family throughout the most crucial stages of life.
How Much Cover Do I Need ?
The ideal coverage you should have is at least 10 times your annual salary or income, ensuring that your family can maintain their lifestyle in your absence.
However, apart from income, you should also consider other important factors:
- Debts and Liabilities – Any outstanding loans such as home loan, car loan, or personal loan.
- Family Expenses – Regular household costs, education, and medical needs.
- Future Goals – Children’s higher education, marriage, or other long-term financial goals.
If your monthly expense is under ₹1 lakh, then a ₹1 crore coverage will be enough for your family to survive for at least 10 years without additional income.
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Add-ons to Consider When Buying a Term Insurance Plan :
While add-ons provide numerous benefits, it’s important to choose them wisely. Select the ones that suit your lifestyle and financial requirements. Some common add-ons to consider.
Critical Illness Rider – Provides a lump sum payout if you are diagnosed with a serious illness like cancer or heart disease. The amount received can be used to cover medical treatment and related expenses.
Accidental Death Benefit Rider – Offers an additional payout to your nominee in case of death due to an accident, over and above the base sum assured.
Waiver of Premium Rider – Waives off all future premiums if the policyholder becomes disabled or loses the ability to earn, ensuring the policy continues without financial burden.
Tips for Buying the Best Term Insurance Plan :
- Buy Online for Lower Premium – Online term plans are usually cheaper since there are no middlemen involved. You can easily compare different plans on platforms like Policybazar.
- Be Honest About Health & Lifestyle Habits – Always disclose smoking, drinking habits, and complete medical history truthfully. Hiding details can lead to claim rejection later.
- Choose Policy Tenure Wisely – A term plan is protection, not an investment. Select a tenure that covers you until your family is financially dependent on you. Ideally, this should be till the age of 60–65.
- Select the Right Insurance Company – Research and choose a company with a good claim settlement ratio, strong reputation, and reliable customer service.
- Nominate Wisely – Always keep your nominee details updated to ensure the claim payout goes smoothly to the intended family member.
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Conclusion :
A term insurance plan is the cornerstone of financial security and a must-have before you even think of investments. The earlier you buy, the lower the premiums and the stronger the protection for your loved ones. Don’t wait secure your family’s future today with the right term insurance plan.
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