Top Reasons to Invest in Term Insurance Early

Your 30s are a pivotal time in your life, during which you must make key decisions about your future, including financial goals and career growth. Making informed financial choices now can secure your future and provide peace of mind. Investing in a term insurance plan is one of the smartest moves you can make. This traditional and purest form of life insurance provides financial protection for whatever the future may bring.

7 Reasons to Invest in Term Insurance Plan at an Early Age

Here are a few reasons why you must get a term insurance plan at a young age:

1. Lower Premium

When you plan to buy a term insurance plan at an early age, you are going to pay a lower premium. It is one of the key advantages as the insurance company considers you to be a less risky customer than individuals in their 40s or 50s. Even a ₹ 1 Crore term insurance plan can be surprisingly cost-effective when you start early.

2. Longer Coverage

Getting a term insurance plan at a younger age enables you to receive coverage for a longer period. This means you benefit from paying lower premiums over an extended period while maintaining protection. 

3. Growing Your Family

When you are in your 30s, you may settle down in life by marrying and growing your family. As your family begins to grow, you must ensure your family’s financial security. In addition, your parents may depend on you financially, so you prepare a contingency plan. 

Getting a term insurance plan at this age helps you to protect your family financially from high-risk scenarios in case of your absence. It gives your family a safety net and allows you to focus on your well-being. 

4. Protection Against Liabilities

During your early age, you may require financial assistance to fulfil your life goals. You may require education loans, car loans, mortgages, etc., to achieve such goals. In addition, you can clear off the liabilities easily if you have a steady income flow. 

However, in case of your sudden demise, your family may find it financially daunting to clear the dues. In such scenarios, term insurance will come to their rescue, as they can repay the dues using the coverage amount. 

5. Term Insurance with Return of Premium Option

As several types of term insurance plans are available, you can select the return of the premium term insurance plan. When you get a basic term insurance plan, your family will receive financial coverage in case of your sudden demise during the policy tenure. However, you will not receive any maturity benefits if you outlive the tenure. 

On the other hand, the return of a premium term insurance plan enables you to receive the total premium once you outlive the plan’s tenure. 

6. Peace of Mind

When you plan to purchase a term insurance plan at an early age, you get peace of mind. Knowing that your family is financially secure in case of sudden demise, you can reduce stress and anxiety. With the right term insurance coverage, you can focus on developing your future without any worries.

7. Tax Benefits

During your 30s, your career will be at its peak, and you can earn a higher income. However, it indicates that you have to pay higher income tax. Hence, it is when investing options like term insurance plan comes to your rescue as you claim tax benefits under various sections of the Income Tax Act 1961.

For instance, you can avail yourself of tax benefits up to ₹ 1.5 lakhs under Section 80C for the premium you have paid to receive the term insurance benefits. 

Final Words

Overall, a term insurance plan is a great investment tool at an early age, as it allows you to receive financial coverage by paying lower premium amounts. Moreover, you can take advantage of several benefits of this plan at a younger age, such as tax savings and comprehensive protection.