Looking at the current lifestyle of the youth, most of them settle in life before they turn 30. By 23, a majority of them finish their master’s and get high-paying jobs. Many of them even purchase their house and luxury cars and even plan several of their international trips. While all of these sound like a dream, it is what many young people are living these days. In this position, what many of them skip on, is term insurance.
Most of the people think that they have a normal risk-free life and an ill-fated incidence like death is something that will not happen to them, at least anytime soon. Unfortunately, ever since the beginning of 2020, we have seen many lives lost due to the pandemic. We are not sure, how many people are we going to lose in the future because of the same virus. In such a situation, even if you are under 30, it will be actually a prudent idea for you to invest your hard-earned money into a term plan.
As you buy term insurance, you are not only creating support for your family, for the eventuality when you are not around but also securing their future with a good amount of financial aid. Let us first discuss the reasons to buy term insurance.
- You secure your family financially: It is our responsibility to think about the future of our family even when we are not there anymore. This is why a term insurance plan is so important. You make the future of your family secure and not let them go through any financial challenges in your absence.
- The younger you are, the better it is: Unlike a health insurance policy, the term insurance plans do not increase every year. Therefore, as your age increases along with your salary, your term insurance premium lowers.
- It is tax-saving: We look for various ways to invest our money and save ourselves from paying heavy taxes. Well, the good news is you can put your money in the term insurance policy and show it as an investment under 80C deductions.
- Employer term plan may not be enough: Several employers would provide you with a term insurance plan; however, it will end the day you switch your job. Therefore, it is always wiser to buy a term insurance plan on your own, depending on your need and of course budget.
- The cover can be enhanced: In various stages of your life, your life cover can be enhanced. There are several policyholders, who enhance their life cover after they get married or they become parents.
If you are wondering about the term insurance plans for age 30, here are some of them:
The two commonly purchased types of life insurance are term and permanent.
Term life insurance:Term life insurance comes with a specific tenure such as 10, 15, 20, or 30 years. If the policyholder passes away in between the tenure, the nominee will be able to avail of the benefits. In some cases, the claim can be rejected. Check out how an insurance claim attorney can help you if the claim is denied by the insurance company.
- Permanent life insurance: Permanent life insurance provides lifetime coverage. Permanent policies also include a cash value which may increase or lessen with time. This option is slightly costlier than term life insurance.
Some Term Insurance Tips For The Under The 30s:
- Compare the term plans: Before you finalize a term plan, you must compare as many of them as available in the market. Several term plans come with different benefits. When you take a look at many of them, you get to decide which one will be best for you.
- Check for plans that cover critical illnesses: There are term insurance plans that even cover some illnesses. It is any day better to choose such plans than the ones that do not cover any illness.
- Take longer-term plans: Taking longer-term plans will help in getting a better amount in return. After all, you are investing this money to make a better future for your family, and it is of course possible if they have more money.
Now if you have already started checking details and other information about term insurance, you may consider IIFL Insurance. Here you can find some of the most comprehensive and advanced term life insurance to choose from. You can also browse through the IIFL Insurance Knowledge Centre for blogs on topics related to insurance.
