Think it’s too early for insurance? 5 term life insurance benefits can prove you wrong

It is very easy to think that insurance is not for you when you are still young or have just started making money recently. However, experts say that if you start planning your finances and developing investment strategies, you may find that a term insurance having a policy written early in life has more benefits than you might even imagine.

In addition, the ongoing global pandemic has surely been a game-changer for various industries, and one of the most affected would be the insurance industry. The COVID-19 pandemic has been a revelation to people, especially when their backs are against the wall and there isn’t much they can do to help their families with the inflated medical bills and the emergency requirement. a lump sum.

You can purchase insurance coverage to take care of and secure your family financially while making other investments to meet your wealth building goals. One of the best investments you can make from the start is to buy the best term insurance policy in India and enjoy the benefits that come with it.

Check out some of the benefits of term insurance policies, especially if you buy it while you are still young:

  1. High coverage at low cost

At a younger age, you have fewer medical problems and no serious illnesses, which is true for most of the population. And a smaller medical history usually equates to lower premiums for term insurance and a higher coverage option. That is why it is in your best interest to buy term insurance policy in India from an early age.

In addition, if you have already paid for your insurance during your youth with additional riders, you will also have sufficient health insurance to support you in the future.

  1. Financial security

If you are contributing financially to your family’s expenses then you should already be well aware that it will be difficult for your loved ones to survive and make ends meet in your absence.

Moreover, if you are the sole breadwinner, your absence can suddenly lead them into a mass of debts and expenses that they cannot afford. You can make sure that nothing like this happens and that your family has their own financial nest egg by purchasing the best term policy in India.

  1. Critical illness coverage

If you thought that a term insurance policy would only provide life coverage for your family in the event of an unfortunate event, then you should do a little more research on what is the long term plan because the answer might surprise you. There are many endorsements that can be added to existing term insurance, which tailors your plan to suit you and your family’s needs.

Critical illness coverage can cover you, the policyholder, against any critical illness you may face in the future, as long as your policy is still active. You will no longer have to worry about heavy medical bills and hospital costs if you have made the smart decision to add this rider to your temporary policy in India.

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  1. Benefits of additional runners

You can tailor your term insurance policy to suit your family’s needs and secure their future with sufficient life coverage. There are many endorsements such as partial or total disability, waiver of premiums, accidental death and critical illness, to name a few.

Make sure you pick the ones that might be of use to you and add them to your term insurance for minimal cost. If there are too many endorsements and it’s confusing you, you may want to consider involving an insurance advisor in your decision and take their advice on all of the endorsements and which would be most beneficial to you.

  1. Fiscal advantages

If you think a term insurance policy is just a way to secure your family’s future, then you need to review the tax benefits it offers. For those with incomes in the tax bracket, the premiums you pay each year for your term insurance may be deducted from your taxable amount under section 80C of the Income Tax Act. As long as your annual premium is less than 10% of the amount of coverage offered by your policy, you should be able to claim a deduction on it when filing your income tax return.

Planning for your family’s safety during your first few years of income will not only ensure their financial freedom, but will also help you manage your finances better. Make sure that your financial portfolio is not just savings or insurance, but a mix of wealth building tools like mutual funds, stocks, gold, etc. Take the first step towards purchasing term insurance and reduce risk for you and your family from the start.

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