Top 4 Reasons Why You Need Term Insurance In College

Do you remember the first day of your college life? How tense, anxious, yet excited you were!

You sure remember; it was a rollercoaster ride, right? One minute, you’re chilling with your buddies in the cafeteria, and the next, you’re buried in books for that semester exam! It’s a mix of fun and responsibilities.

We all thought we could not make it, but look! We’re here today! Striving and doing our best!

But here’s a thing- being in college means you’re stepping into adulthood. And part of being an adult is making sure you and your family are financially secure. Think of it like using an umbrella when you’re out on a cloudy day. You hope you never need it, but it’s there just in case.

Let us introduce you to Rakesh. Rakesh is an 18-year-old from a small town in the outskirts of Delhi. Just like any of us, Rakesh too dreams of getting the best education and making a difference in his life. He took out a student loan to pay for his dream course.

His parents have supported him through everything, providing him with the best resources to do well in life. They have seen how dedicated he is - staying up late to study for admission exams and also helping the family out whenever possible.

Rakesh, with the fresh responsibilities of adulthood sinking in, is also thinking of taking a part-time job to help out with family’s expenses.

His college has been treating him just fine; he has adjusted well and made new friends, and every day after classes, the debate over chai was a must for them!

Do not get nostalgic yet. We have more to discover here!

One fine day, when Rakesh was on his way to college with his friends, sipping tea and talking about India’s GDP growth, they stumbled upon a commotion on the opposite side of the street. A 20-year-old college student had died in a car accident. Apparently, the boy was the only source of income for his family. This hit Rakesh hard. He realises that if something unexpected happens to him, his family might struggle, just like the family of that student.

He quickly takes out his phone and comes across- term insurance! As a young college student, buying an insurance policy could be the last thing on your mind amidst your busy schedule! Rakesh finds out that if he were to face an accident or a serious illness, this term insurance would help him cover important expenses. This would include- his student loans, rent, and other bills that his family might find hard to manage on their own.

Is it getting too much for you to grasp? Worry not! We are here to help you out.

So, term insurance is more than a financial tool; and it is not just for the breadwinner of the family. It can be bought by anyone in the family with maximum to less income as well!

Just like Rakesh, you might be thinking about the future and what it holds for you. In this article, we will take that stress away from you and give you four reasons why you, as a college student just like Rakesh, would need term insurance.

So, keep reading and learning- this might just be the step you need to take to ensure that your family is protected and continues to move forward even if you are not around to help.

Top 4 Reasons Why You Need Term Insurance In College

1. Affordable Premiums For Young Audiences:

Our guy Rakesh, loves video games. He finds out that PS5 is on sale for a really low price now! It’s brand new and top-notch quality. He knows if he waits, the price will spike because it’s a good deal but only for a limited time. That’s a bit like term life insurance for college students.

So, when Rakesh buys term insurance now, being young and healthy- his policy premiums will be cheaper. Later on, as he ages and may not be as healthy, the cost goes up. Because of more health risks, he becomes a risky individual for the insurer to cover. Pro-tip: Always remember that health issues down the road could make insurance premiums really expensive!

So, by getting term insurance in college years, one can pay less money and get a life cover that could really help the family in future.

2. Shield Against Unforeseen Events:

We all know how life can be full of surprises, right?

Now, Rakesh is the main character of our story. He has people who rely on him, like his family, including his parents and siblings. But if something happens to Rakesh, who saves the family? That’s where term insurance comes in. It’s really important because if something unexpected happens to Rakesh while he has this insurance, his family can get the necessary help. They would receive money, as we call it, the death benefit. This money will help them pay for things like bills, debts, and his sibling’s education and help them maintain their lifestyle.

So, by getting term insurance now, one can ensure that their family won’t have to worry about dealing with tough times!

3. Protection From Debt:

Rakesh, like many students, also relies on loans to pay for college. Now, what if, tragically, he passes away? Who pays for his loans? Should his family be grieving or worrying about how to pay off these loans without him?

Term insurance plays a sweet trick here, too! If he purchases term insurance now, it could help him pay off those loans easily. This ensures peace of mind for not only Rakesh but also his family, who will not be stuck with financial debts.

4. Tax Advantages* is a Plus:

Yes, we know you have not started earning yet, but you surely will begin soon. And you would be wondering, how does an insurance policy help you with tax advantages*? Well, it’s actually pretty cool!

Here’s how it works: under Section 80C of the Income Tax Act,1961 Rakesh could actually get tax deductions on the money he pays each year for his term insurance premiums. It’s kind of like getting a discount on something you buy because you’re planning ahead.

And that’s not all! If something were to happen to Rakesh, then his family might need to use the term insurance money; they wouldn’t have to pay taxes on it. Yep, you read that right! It’s exempted under Section 10 (10D)**.

So, whether you are just starting high school or figuring out your college options, knowing about term life insurance and its tax benefits* can be really helpful. Just like Rakesh, you, too, can start early and take advantage of all the above-mentioned benefits.

Wrapping Up!

So, there you have it- four great reasons why term insurance is a wise choice for college students, the youth who’s stepping into adulthood. Investing in a term insurance policy should be a part of every individual’s financial goal. It helps you save money with lower premiums, protects your family against unexpected events, pays off your debts, and even gives you tax benefits*. By starting early, you are not only planning ahead for your secured future but also making sure your loved ones are safe and sound.

Hence, while you are enjoying every moment of college life, don’t forget to secure your future. It’s a grown-up decision, but it’s as easy as grabbing a coffee with your buddies and way more impactful.