We all know the feeling of being young and starting to earn our own money. A world of opportunities opens up for us to fulfill our passions and indulgences at this juncture, particularly since we have lower financial responsibilities and commitments during these initial years. Yet, no matter what you do, investing in a good term insurance plan is always the need of the hour. Young professionals will benefit immensely from purchasing term plans as early as possible. Here is a closer look at the biggest advantages of the same.
Major Advantages of Buying a Term Insurance Plan
Young professionals will get these advantages from buying term plans early in life:
Financial Security – Even if you have lower financial responsibilities, you still commit to your parents and loved ones. Term insurance will help you secure them financially should anything untoward happen to you within the policy period. The sum assured or death benefit will help your loved ones live with dignity even in your absence.
Higher Coverage for Lower Premiums – One of the biggest advantages of buying a term insurance plan early in life is the lower premiums you can get for relatively higher coverage. It will stay fixed throughout the policy period, and you will no longer have to worry about rising premiums. The same coverage will be hugely expensive later in life. Insurers offer lower premiums to younger customers since they are perceived to have lower risks of chronic ailments.
Lower Rejection Chances – Buying term insurance is always recommended when you’re young and completely healthy. Younger adults usually have lesser medical ailments, meaning that the likelihood of their insurance applications being rejected is negligible.
Higher Flexibility – Once you purchase your term insurance policy, you can benefit from several flexible options down the line. You can keep scaling up coverage at various stages in life, including marriage, childbirth, and so on. At the same time, you can also keep adding riders to widen your coverage (for nominal extra premiums). These may include critical illness, terminal illness, premium waiver, accidental death and disability, and more.
Tax Deductions – One of the major advantages of investing in term insurance is that you’ll start getting tax deductions from a young age. Your premiums will be tax-deductible under Section 80C, while any health-related rider will be eligible for deductions under Section 80D as well.
Concluding Notes
Hence, as you can see, investing in term insurance is a good move if you’re a young professional. The earlier you start, the better you get more coverage for a lower premium. At the same time, you’ll also be getting coverage for a longer duration in life, which is also helpful in financially securing your family and your own mental peace. Add term insurance to your portfolio as soon as possible without further delay. It will undoubtedly be one of your life’s smartest financial decisions.
