Term insurance protects your family in case of any unforeseen situation. However, it is important to understand that with every stage of life, your financial responsibilities will change. Therefore, your insurance requirements might also change. This can impact the premium of term insurance.
In this article, we will explain how term plan premium can vary based on different life stages.
One of the concerns that every person has is providing financial protection to their family. A term plan can be beneficial for a person’s family as it offers life cover. It provides financial assistance to the family if the policyholder passes away during the term.
Here are some of its benefits-
- It offers a sum assured to the insured person’s family in case he/she passes away untimely.
- Policyholders can also get tax benefits by purchasing term insurance. They can avail a tax deduction under Section 80C for the premiums paid for buying a term insurance plan.
- With term insurance, a policyholder can purchase add-ons. Add-ons are additional benefits that a policyholder can purchase to enhance the life cover. Some of the add-ons that can be beneficial are critical illness cover, accidental cover, etc.
While term insurance can provide protection to your family, you must pay premiums to purchase the policy. However, you should know that term insurance premium varies based on the life stages.
- When a Person is in the 20s
The premium for term insurance might be low when a person is in his/her 20s as he/she is still young. Therefore, it is recommended to buy term insurance at an early age.
- When a Person is in the 30s
As most people get married in this stage, term insurance becomes important. Due to the new responsibilities, getting life cover is crucial. It can protect the policyholder’s family in case of an unfortunate event such as death. Therefore, term insurance can help in reducing the financial burden. Regular term insurance can be a great option in this stage.
- When a Person is in the 40s
Most people in this stage have kids. Therefore, people in this stage try to help their kids achieve their goals. Hence, a person in his/her 40s should look for term insurance that can provide sufficient cover in case he/she passes away untimely. This can help his/her children to achieve goals, such as higher education.
- When a Person is in the 50s
Many people in their 50s are planning for their retirement. Therefore, a traditional term insurance plan might not be helpful as it doesn’t provide any maturity benefit. They can look for insurance policies with return of premium. Furthermore, a lot of people in their 50s become susceptible to critical illnesses. Therefore, opting for a critical illness rider is crucial. With the help of this rider, the policyholder can get a sum assured if he/she is diagnosed with a critical illness during the tenure of the policy. This cover can help in paying the high medical expenses.
By purchasing term insurance, you can protect your family at different stages of life. Understand what your requirements are based on your life stageand choose a policy that can be beneficial.