Why should you buy Term insurance at a young age?

Term life insurance is the last thing on our minds when we are young. Young people think that since we are young, single, and healthy, we do not require term insurance. Also, we have fewer responsibilities, we do not need insurance, and so on. However, contrary to that, a term life insurance plan is necessary and has its own benefits when we buy it early.

Here we will see 7 main benefits, why should you buy Term insurance at a young age.

1. Low & affordable Premium

The great benefit of buying term life insurance early is to avoid paying a higher premium. The cost of term life insurance increases exponentially as you get older. Since you are healthier and have fewer responsibilities at a young age, insurance companies take these characteristics into account when determining your term life insurance premium with the same life cover and other plan features for a lower price than older age groups.

2. The total cost is low

Since the premium is low, the total cost of a premium for a covered period also gets low. 

3. Family & dependents get covered early

If you wait too long to buy term insurance, you risk leaving your family vulnerable to financial difficulties in any unfortunate demise. Even if you are not married, your parents may find it challenging to manage their bills if they are financially dependent on you. Furthermore, if you have liabilities like a car loan, an education loan, or a home loan, your family members will be responsible for repaying them. This could put them under even more financial burden. If you buy term life insurance early on, you won't have to worry about it.

4. Pocket-friendly option to cover home loan

Today, the young generation buys a home at an early age with a home loan. In any unfortunate demise, the liability of paying that big home loan is on family members. Sometimes buying home insurance may seem costly, since it covers only the home loan amount. Term insurance can be a pocket-friendly option in that case which can cover any liabilities you have with additional cover for your loved ones.

5. Additional Benefits 

Insurers provide additional add-ons/riders such as accidental death benefits, and critical illness cover with lesser additional cost to people at a young age. 

6. Tax benefits

The most significant advantage is that term plans provide a yearly tax benefit under Section 80C of the Income Tax Act, which exempts premium payments up to Rs. 1,50,000 per year.

7. No Rejection Due to Any Pre-Existing Illness

Your odds of having your term policy application get rejected on health grounds as a person in your 20s with few major health difficulties are mostly negligible.

Conclusion

In essence, why lose these many benefits? Term life insurance is a necessary financial decision that everyone must take at a young age. It lays a strong financial foundation that not just helps you in achieving your life goals in time but also in effectively protecting against uncertainties.