While buying a term policy, age is considered as a starting point, from where the insurance company can go on to predict your health in general. For example, an individual in his 20s is usually expected to be more limber and physically capable than say, someone in their 40s or 50s. Overall, an individual’s fitness depends upon a variety of factors, such as lifestyle habits, and sleep patterns, and age.
A term policy serves as the perfect financial cushion for your loved ones, which helps them stay afloat financially if something happens to you. While there is a baseline term insurance age limit, the benefits of a term policy tend to vary with age, and it is advisable that you purchase the best term policy for your family and yourself at the earliest. Here are a few benefits of having the protection of a term policy –
Term insurance policies are designed to offer maximal policy benefits yet affordable rates of premium. Most term insurance policies (except for term plans with return of premium benefit) provide the insurance benefit to your family only in case of your untimely demise within the coverage tenure. As a result, the premium rates are usually lower than other life insurance products.
You can purchase a term policy online – within a few easy steps. You can review, compare, and buy term insurance plans from the comfort of your home and without needing someone to do it for you.
Multiple Payout Options
At the time of buying a term policy, you can choose how your family will receive the insurance benefit. You can either provide for a lump sum payout or opt for staggered payouts throughout a specific period in the form of monthly premiums.
Flexibility to Pay Premiums
Another aspect of buying a term policy is that you have the flexibility to pay the insurance premiums as per your financial capabilities. You can either go for one-time premium payment, choose to pay the premiums either in one go or monthly, quarterly, semi-annually or annually.
Watch: Term Insurance Plans | Aegon Life
Tax Saving Benefits
The premium payable under a term policy, up to Rs 1.5 lakh is eligible for tax deductions under Section 80C of the Income Tax Act, 1961. At the same time, the insurance benefit payout is tax-exempt under Section 10(10D) of the Act as well.
As evident, a term policy offers maximal benefits at an affordable premium so that you can provide all-around financial protection to your family. The earlier you purchase a term policy, the longer you can avail of these policy benefits. Even if you think that you have surpassed the ‘right age’ to buy a term policy, think again! Here is how buying a term policy is desirable across different age groups.
In Your 20s
Most of us start our professional careers in our 20s. Not only you have fewer responsibilities in life but also the financial debts are more or less insignificant, except maybe for an education loan. If say, anything were to happen to you, however, the burden to pay off your debt falls entirely on your parents.
In such a situation, having a term policy will help your family pay off your debts while making sure that they are financially stable throughout their lives. Also, the insurance company will offer the lowest possible premium rates to individuals in their 20 since they have a comparatively lower risk (mortality rate) than others.
In your 30s
it is usually in our 30s that we decide to get married and start a family. As you prepare to welcome the newest member of your family, the sense of additional responsibilities and worry seemingly creeps in. You have to provide to secure your child’s future while taking care of other financial obligations such as car loans, home loans, and other long-term commitments.
Thus, the timing is perfect to opt for a term policy, so that you protect the interests of your loved ones financially. Without you, your loved ones will have the necessary funds to pay off any existing debts while taking care of their daily expenses.
In Your 40s
As you turn 40, you may have paid off most of your long-term debts, including loans. However, there are responsibilities such as your child’s higher education, the health of ageing parents, and planning for your retirement, which need you to provision for a substantial financial corpus. Thus, you will require more significant financial safety for your loved ones. Here you can choose a term policy with a large cover.
In Your 50s and Above
In your 50s and above, you may have to pay a much higher premium than say, someone in their 30s or 40s. However, it is advisable that you still go ahead and purchase a term policy, if you are the only provider for your family and need to pay off substantial financial debts.
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