• 27th February 2024

The Importance of Young Adults Having Term Life Insurance

The rising trend of starting your investment journey at an early age is becoming very popular in the country today. Young adults around the age of 20 to 30 are becoming extremely conscious about their financial decisions when it comes to their future.

Investing in a term life insurance plan was considered an important decision for the older generation, as young adults believe there is no point in starting early. However, the benefits of term insurance for young adults are too many to ignore. 

Especially now, when you can go online and compare term insurance using a term insurance calculator, there is no valid reason for this digital generation not to invest.

Let us discuss the importance of having a term life insurance policy for young adults below.

Why Choose Term Life Insurance for Young Adults?

When you invest in a term life insurance policy, you get coverage for a set period of time. However, the financial benefits received by your family members after your untimely demise make it a promising investment option.

Regardless of age, investing in term life insurance fulfils the goal of supporting yourself and your family in times of need. Here are the top benefits of investing in term life insurance for young adults.

Lower Premiums

The premium required for term life insurance is based on multiple factors, age and health being the top two. As a young adult, you have a lower risk of critical illnesses and other common concerns like blood pressure and cholesterol. Therefore, you can benefit from affordable premiums throughout your tenure if you start early.

Rider Options

When you start investing in term life insurance at an early age, you also get the benefit of flexibility in choosing the different rider options available with any plan at a reasonable additional cost. 

Moreover, most of the term plans also allow you to increase coverage for different milestones in your life, like marriage and childbirth. This makes it an extremely beneficial investment for the long run for your family’s financial safety.

Financial Safety For Family For Repayments

With the increasing health issues worldwide for all age groups, investing in term life insurance at an early age is highly recommended. Even though young adults might not have the same kind of financial liabilities as the older generation, small liabilities like student loans and expenses can be repaid by your family with the term insurance settlement.

Tax Perks

Multiple tax exemptions are available for term life insurance premiums and claim amounts as per different sections of the Income Tax Act 1961. For instance, under Section 80C, you can get tax deductions on your invested money; under Section 10 (10D), you can avail of tax exemption on a lump sum amount earned under the claim.

Better Cover

Investing in term life insurance early will allow you to enjoy an affordable premium throughout the tenure and get the same financial protection benefits for your family members. However, if you buy the term insurance at age of 45, the premium amount will be higher for the same benefits.

Summing Up

To choose the right term life insurance plan as a young adult, understand the coverage offered, the premium charged and the terms and conditions of any policy before making the final decision. 

The important thing to remember is the financial security and peace of mind you will achieve when you invest in term life insurance at an early age. You also give your family members enough backup to cover your liabilities in your absence. Invest early and buy a term life insurance policy today!

 

 

 

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