There are many advantages of buying a term insurance plan early on in life. It costs less and is easier to find. We discuss many such reasons in this article.
Firoz was on the threshold of his 33rd birthday. He was also getting married in 6 months’ time. Being a carefree person thus far, Firoz had never considered the need for getting insured. But with age catching up with him and more responsibilities on the way, he knew the time was right for him to buy a term plan. He had to act fast, though. Term plans would cost a lot more in a few years. So without wasting any more time he got himself a comprehensive term plan.
It is very important for you to buy a term plan early on in life. Why do you ask? Well, there is more than one reason and we have listed them all for you. Take a look:
Lower cost
A term insurance plan, with a cover of Rs 25 lakhs, costs Rs 5000 when you are 25 years old. The same plan costs Rs 8000 when you are 35 years old. So as you can see, the older you get, the term plan gets more expensive. It, therefore, is a good idea for you to buy the plan well before you are 35 years old.
Health benefits
A young person, in most cases, is healthier than his older counterparts. As a 24-year-old, you may be free from illnesses such as hypertension and diabetes. However, by the time you reach 35 and are higher up your career ladder, the stress and work pressure may push your BP and sugar levels up. And since term plans insurance your life, a healthier person always has to pay a lower premium. This is another reason why you must buy a term plan before you turn 35.
Fewer responsibilities
If you have many dependent family members, especially young children, the insurance company will charge you a higher premium. So be a thinker and plan your life out. You may be a single 28-year-old today, but you will get married and have a child in a few years. You would eventually need a term plan to protect your family. So why not buy it now when it would cost less and keep them protected later on too?
Easier to manage finances
When you are young and single, you generally have fewer monetary issues to worry about. You may be repaying a student loan, but you may still not have taken a home loan or a personal loan. As you age, your responsibilities increase and you find yourself under a debt burden. Buying a term plan becomes difficult at such a stage. So buy the policy earlier when it is much easier to manage it financially.
Simpler qualification
Last but not the least, a young person is more easily accepted into a term policy than an ageing person. Most insurance providers look to sell their term plans to the young and healthy people as the risk is lower with them. Make the most of this and apply for your term plan before you turn 35.
To sum it up
It is very evident that a young person gets a term plan at a more economical rate. The convenience is also larger. So if you are below 35, get a term plan without any further ado. The reasons mentioned above should be testimony enough to you.