By the time you reach the age of 30 you become a responsible adult. So, basically you are healthy and placed with a fantastic career. Financial stability is around the corner by this phase of life. Most probably, you have recently started a family or are planning to get married. You’ve bought a car or bike, perhaps you’ve invested in buying a house too.
But, it’s only human to not bother about the ‘what if’ moment that could otherwise leave one’s family in a state of financial crisis. It’s smart to buy a term insurance if you want to ensure the financial well-being of your family the day you’re not around anymore. Buying a term insurance by the age of 30 comes with its own advantages!
5 Reasons to Buy Term Insurance Before You Turn 30
1) Most-recommended Financial Product
We will recommend you to buy a term insurance policy for the following reasons:
- Mutual funds and pensions plans can help you save money for your retirement days. You start investing early because you want to have a larger corpus at your disposal.
- But term insurance helps you solve a much bigger risk: risk of death. An unpaid loan, your plan to send the kids to college, financial security for your parents or your spouse. Even if you’re not around, your family will have financial support.
2) Starting Early Means Lower Premiums
Before you hit your thriving thirties, you are healthy. The lifestyle diseases like diabetes haven’t started taking a toll on you. Substances like alcohol, smoke, and pesticides in our food haven’t crossed the unhealthy levels.
While applying for term insurance, one has to undergo a medical check-up. An insurance company could decline to cover you with a term policy because of a lifestyle-related disease. The chance of this rejection is definitely higher as you approach your 40s.
3) Lock Your Premiums Now
When you buy a health insurance policy, your premium increases every year. But with term insurance, you lock the premium amount. So, buying a term insurance earlier in life implies that you will pay a lower premium for the rest of policy term.
We all are always on the look-out for number of options to invest and save on income tax. So, good news! Premium paid toward buying a term insurance plan can be part of investments under 80C deductions. Money saved in tax is more money in hand for other important things in life.
5) Term plan by your employer is not your best plan
It’s good to work with an employer who cares about your family’s future. But to rely only on the term plan offered by your employer, is not the best plan. At the age of 35, you hit the peak of your career. To switch jobs and explore better career opportunities is always part of our growth. But, let me tell you that the term plan offered by your employer may not be portable, and will end as soon as you move on. Rely no one but your best judgement. Buy a term insurance plan when they are the most affordable for you and offer the best risk cover to your family!
Turning 30 is a major phase in any one’s life. While we may wish that anything uncertain would not happen to us, life throws a lot of surprises. These surprises may be bitter. But to make them less bitter, it is important that you buy a term insurance plan and secure your peace of mind.
MoneyMindz, India’s First Free Online Financial Advisory is putting an effort in making your life more easy and smooth by planning your financial life in the most efficient way possible.
For more information visit www.moneymindz.com or give a missed call to 022 6211 6588.