What is The Need To Buy Term Insurance Suiting Different Stages of Your Life?
If you want your family to be financially sound even with you not around, then you should opt for an insurance plan that ticks all the right boxes. Buy term insurance plans that fulfil this requirement. They are the best investment instruments that affirm your family members of that much-needed support.
You will find a range of term insurance plans that are being offered by insurers. However, like tailors cut to suit individual needs and confront every aspect of requirement, you need to find the best term plan accordingly.
If the question in your mind is about when the right time is to buy term insurance plan, then there be several answers. It is so because having a term plan at every stage of life has its own perks.
Many people believe that if you are above 35 years, then it is the best time to buy term insurance. And many think that the earlier you begin investing in it, the better it is. However, the best term plans are suitable for every stage of your life. It is just the adjustments that you make in your term plan every step of your life that counts and makes the difference.
Let us begin with knowing the different life stages and the requirement of a term plan for each. It will help you understand your insurance requirements better:
- In Early ’20s and Unmarried
Unlike a few people, everyone usually prefers to marry late in life. And if you too believe in the same thought, around this point in time, you might be starting with your career. Hence, your expenses would be much less. You might not even know what is term plan. But this time is precisely the moment when you should look forward to creating a financial cushion for later years. And having a term plan does just that.
And at this stage of your life, when you plan to buy term insurance, you will find that there are several best term plans, which are affordable and offer a great many benefits. Being one of the best insurance plans, it will cover risks of death, disease and disability at a low premium. Plus, they will help you save on tax and build a savings’ corpus for your future.
- In the Mid ’20s and Married
Marriage is a crucial step in your life. You will be beginning a new chapter which also means responsibility. As newlyweds, you both may have many aspirations from life and depend on each other. In case, due to an unseen situation, you are not around, your spouse may have to deal with financial problems.
Hence, it will be wise to buy term insurance at this stage in life if you do not have one already. It will enable you to create a sound financial backing for your family that is sure to grow in a few years’ time. In this stage of life, you will need to have more coverage as compared to your earlier investment planning. So, buy term insurance that offers a basic life cover and increasing monthly income.
- In Late ’20s and With Children
The responsibility of a parent is far beyond what words can express. In this stage of your life, you have to think about your children, education, and marriage. In India, for private colleges, the standard cost can reach up to 50 lakh, according to a survey.
Imagine if, in future, you are absent from your family’s lives. At that point in time, they may face monetary problems. They may not be able to fulfil their dreams, and even their living lifestyle can get affected.
Thus, you will definitely think of protecting them and ensuring that they are financially secure when you are gone. You would want your long term debts should be covered. At this stage of life, you will need to secure yourself and your family firmly with a higher protection term insurance plan. Thus, the best term plan would be the one with an adequate sum assured to cater to all the expenses. The coverage should be 15 to 2o times your current annual income.
- In Late ’40s and Plan for Retirement
Once your children are in college or pursuing their higher education, you need to start planning for your twilight years. On reaching this stage in life, you would have continued to work hard and saved enough funds to support your retirement years. You will have to think of a plan that will fund you and the lifestyle you plan to retire into.
Also, it is essential to consider premature demise and how your investments will support your family and their lifestyle after you are gone. The best term plan would be the primary term plan with the return of premium option. It will offer life cover and provide an option of return of premiums after the policy period.
Although it will be wise to buy term insurance as early as possible in life, it is never too late. You can research the numerous term plans online and make your financial decision accordingly. Remember that while you may not be able to prevent unfortunate events from taking place, you sure can keep your loved ones’ future secured with a term plan.
