Here are 5 reasons that explain why you should buy a term insurance plan early in life:
1. You will get lower premiums
The premiums for a term insurance plan are a lot lower when you are young compared to when you are older. Insurance companies offer great features and services at significantly lower prices for people in their 20s. This premium gradually starts to increase as you step into your 30s, 40s, and 50s, and so on. Investing in a term insurance plan early in life can ensure that you get the best term insurance plan without having to spend a lot of money. This contributes to your savings and lets you focus on other life goals too without any worries.
2. You will get a higher sum assured
Not only do insurance companies offer lower premiums at a young age, but they also offer high sum assured amounts. You can get a sum assured as high as ₹1 crore or more at a nominal cost if you buy term insurance early. This is primarily because you are in the best of health in your youth, and therefore, present a lower risk to the insurer.
A high sum assured can help your family members cover all their expenses in your absence. It can also be effective in beating inflation.
3. Your loved ones will be protected against loans repayments
When you are young and starting out in your career, the chances of taking loans are considerably high. For instance, you might have debt like credit card bills, home loans, car loans, etc., to cover your expenses. But in the event of an unfortunate event, the responsibility of paying back all of this debt will fall on your loved ones. If you are the only earning member of your family, your dependents will have no source of income to settle the debt. However, if you buy a term insurance plan at a young age, your family members will always be secure from creditors.
4. You can save more money with tax benefits
A term insurance policy offers several tax benefits. Firstly, the death benefits are tax-free under Section 10D of the Income Tax Act, 1961. This helps your loved ones use the full sum assured without losing out on tax payments. Secondly, a term insurance plan offers tax benefits under Section 80C that allows you to claim a tax deduction of up to ₹1.5 lakh against the premium of your policy every year. While the first tax benefit will be helpful to your family members, the second tax benefit can be a major advantage to you. By purchasing a term insurance plan early in life, you can claim tax deductions for years at a stretch. This can amount to significant savings.
5. You will live a stress-free life
The constant thought of what will happen to your family if you are no longer around to protect them can keep you awake at night. However, a simple decision of purchasing term insurance can take away all your worries and offer you peace of mind. When you invest in a term plan early in life, you live a more assured and stress-free life, knowing that your family members are financially safe and protected no matter what.
To sum it up
A term insurance policy is a must tool to have. Hence, there is no reason to delay its purchase. Remember that the sooner you buy it, the better it can be. So, go ahead and invest in the best term insurance plan by PNB Met Life and secure your family’s future.
To know more about term plan, long term savings & life insurance plans visit PNB MetLife website.
The aforesaid article presents the view of an independent writer who is an expert on financial and insurance matters. PNB MetLife India Insurance Co. Ltd. doesn’t influence or support views of the writer of the article in any way. The article is informative in nature and PNB MetLife and/ or the writer of the article shall not be responsible for any direct/ indirect loss or liability or medical complications incurred by the reader for taking any decisions based on the contents and information given in article. Please consult your financial advisor/ insurance advisor/ health advisor before making any decision.
PNB MetLife India Insurance Company Limited
Registered office address: Unit No. 701, 702 & 703, 7th Floor, West Wing, Raheja Towers, 26/27 M G Road, Bangalore -560001, Karnataka
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Tax benefits are as per the Income Tax Act, 1961, & are subject to amendments made thereto from time to time.
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