We all know what a term insurance plan is. It is a basic insurance plan that provides coverage to the policyholder at a fixed rate of payments for a specific term, that is time period. In case of the demise of the insured person within the term period, the term insurance provides coverage to the insured person’s dependants.
Term insurance plans are a vital part of every person’s insurance portfolio during the growing years, and it is said that the best time to buy a term insurance plan was yesterday. This means the earlier a person starts investing in a term insurance plan, the better benefits he/she will receive on it. It is one plan that can save the policyholder against various financial shortcomings at different stages of life. Be it a road accident or a severe illness, there are various unfortunate events that knock one’s door without notice and cause an emotional and financial burden. The emotional burden cannot be reduced, but the finance is something a person can manage. Thus, it is necessary to be prepared to face any such situation, and to do so, a person needs to invest in term plan as early as he/she starts earning.
This can be beneficial in many ways. Want to know how? Read further to know the benefits of investing in term insurance at an early age.
- Increasing premium with growing age – At a younger age, you have to pay a very low cost of the premium. The reason is obvious, at a young age, most of us are healthy, and health is one of the major factors based on which premiums of term plans are decided. With growing age, the risks of diseases like blood pressure, diabetes, cardiovascular diseases are higher. Therefore, it leads to higher premiums. Thus, buying a term insurance plan at a young age can be affordable.
- Lends protection to your dependants – In case anything happens to you, your family might suffer a financial burden. In such times, a term insurance plan is something that can cover your family against the financial liabilities after you.
- The flexibility of adding benefits – Other than the death benefit, there are other benefits that can be added to a term insurance However, the add-ons can be availed only by eligible candidates depending on their age and health. At a young age, people are less prone to severe illnesses. Thus, a person can opt for whichever add-on he/she wishes to add.
- Save tax – Other than financial benefits, a term insurance plan comes with tax exemption benefit under Section 80C of the Income Tax Act. The cost of premiums paid towards the term insurance plan is deducted from the taxable income, and the limit is up to Rs. 1.5 lakh.
- Reduces stress – No matter if you are in your 20s or 30s, there is always the risk of uncertainties, and this can cause stress if you are not prepared. With a term insurance plan, you can rest assured that your family won’t face any difficulties managing the finances after you. Check Cash Loan Singapore.
