A term plan is indeed one of the most useful forms of life insurance. It is inexpensive and offers a comprehensive cover. It is therefore, very advisable for people to get a term insurance plan early on in life. You can buy a term plan in your 20s, 30s or 40s, but research suggests that the earlier you get it, the better it is for you.
Reasons why you should get a term insurance plan when you are young
There are many reasons why and when you must get a term plan in life, perhaps in your 20s. They are:
- When you are healthier: A term insurance plan is cheaper for those who are fit and healthy. As we all know, a younger person is generally healthier than an older person. So make the most of this and buy a term plan at a low cost when you are young and fit. You can take the cover for a long term and continue to stay protected at a low cost.
- When you have fewer responsibilities: When you are in your 20s, you will not have too many dependent family members to take care for. However, things will dramatically change in another 10 years or so. Therefore it makes sense to buy the term plan now and keep it going for a long tenure. So you will already have a life cover when your spouse and kids come along. Now that is a smart investment, isn't it?
- When you can afford i : A term insurance plan is not as expensive as a whole life plan, a ULIP or even an endowment life insurance plan. So even with your fresher's salary you can afford a term insurance plan. These plans therefore are very well suited for youngsters who are just starting out in their careers.
Advantages of a term plan
There are many advantages of a term plan. Like mentioned above, the plans are available at lower costs and you can stay covered for a very long time. You can also surrender your plan at any time if you feel it is not delivering well for you. Term plans are available in various forms too. You can choose from a level term plan, a term plan with return of premium (TROP), an increasing term plan or a decreasing term plan. Choose wisely and get a whole lot of benefits from your term life insurance plan.
Buying a term plan
It is very easy to buy a term insurance plan. Most of the insurance companies nowadays offer these plans online. So all you have to do is go to the insurer's website, submit very few documents, make an online payment and the plan will be yours. It actually is that simple! Do run a comparison before you buy a term plan as that will show you what your options are and will help you find the best plan at the best rate.
When is the best age to buy a term plan – the verdict
So as you can clearly see from the points mentioned above, the best time to buy a term plan is when you are young, healthy and free of responsibilities. There however is no limit on the age at which you can buy your term insurance plan. So if you are in your 30s, 40s or even your 50s and haven't bought term insurance yet, you may very well consider getting it now. Explore the different options you have and take a life cover that would cater to your insurance requirements. Once that is done, your term plan will kick in and keep you and your family covered from future financial problems.