When Should Salaried People Buy Term Insurance

Term insurance is like a life raft, helping your loved ones stay afloat amidst uncertain, stormy seas. It acts like financial armour, protecting them from the onslaught of life’s never-ending expenses, when you aren’t around to provide for them anymore.

Let’s understand briefly how term insurance works. If you invest in a term insurance plan, your family will get a fixed sum of money if you happen to unfortunately pass away when the plan is active. This money replaces your income and becomes a financial cushion for your loved ones so that they can have a worry-free and secure future. Whether it’s your child’s higher education, your spouse’s comfortable lifestyle, or paying off any loan you’ve taken - term insurance helps with it all.

But when is the right time to buy term insurance? Should you get it as soon as you start working? Or keep the decision for later? Let’s discuss all this - in the article below.

Here are two important points to look at when deciding the right time to invest in term insurance -

1. Your Financial Dependents And Outstanding Loans

Before we get into the discussion about the right time to buy term insurance plan, it’s important to remember its core purpose. Term insurance aims to offer financial stability to your loved ones and to keep them safe from any liabilities.

So, you need to ask yourself, do you have people who are financially dependent on you? Do you have any outstanding debts or liabilities?

If yes, you need to get a term life insurance plan as soon as possible. This will ensure that your dependent family members are financially protected, no matter what life brings. On the other hand, if your answer is no, there’s no pressing need for you to invest in term insurance right now.

2. The Earlier You Buy, The Lower Your Premiums

Another important point to consider is the premiums you’ll pay for term insurance. Generally, the earlier you buy term insurance, the lower your premiums. The premiums depend on the age at which you buy the plan, and they remain constant throughout the policy period. The usual recommendation is that you should buy the policy as soon as possible to get a lower premium.

But, this really does not make any sense. Before investing in the plan, there are a lot of important decisions to be made, like the cover amount you need, the customisations, the policy duration, and more. Hastening into buying term insurance to secure lower premiums can hamper the financial futures of you and your loved ones if you haven’t understood their specific needs. They may end up with insufficient coverage or unnecessary complexities.

So, we can surmise that deciding the right timing for buying term insurance is a nuanced and oft complex question. It’s crucial to balance the two above mentioned factors. You should wait till the term insurance coverage is needed and then buy the plan immediately, so you get some sort of premium savings.

ABSLI Salaried Term Plan is tailored exclusively for you, a salaried individual seeking comprehensive protection. With the freedom to customise your plan according to your specific needs, this solution offers both lump sum and monthly income options. Whether it's ensuring your child’s education, maintaining a comfortable lifestyle, or meeting everyday expenses, this pure-risk term plan is designed to provide unwavering financial support. It empowers your family to embrace the future confidently in case the unexpected happens.

Some of the Key Features of the Plan:

• Choose from a diverse range of 4 plan options to match your unique protection needs perfectly.
• Enjoy life insurance coverage that spans up to age 70.
• Select from versatile options for death benefit payouts, whether you prefer a lump-sum or monthly income.
• Additional protection with the inclusion of an inbuilt terminal illness benefit.

It is important for salaried individuals to consider the benefits of term insurance carefully. By assessing your outstanding debts and the needs of your dependents, you can determine the right time to purchase term insurance. Remember, it is never too early to protect your family's financial security. So, take a moment to evaluate your circumstances and make an informed decision that will provide peace of mind for years to come.