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What Is The Perfect Age To Buy Term Insurance? 

Term Insurance is a sub-type of life insurance that offers financial safety to the policyholder's family in the tragic event of their unfortunate demise during the policy tenure.

Insurance is a basic necessity for every investment portfolio, considering the uncertainty of life itself.

Term insurance plans are some of the most common and popular life insurance products that people purchase for their portfolios. Yet, despite the popularity, the perennial bone of contention remains- what is the right age to buy term insurance? The truth is that no matter what stage of life you are at, Term Insurance plans can serve a purpose in your financial portfolio and remain crucial to it. 

Read on for more information on how term insurance can benefit different age groups and other crucial aspects of these plans. 

Why insurance is essential for your portfolio

Insurance is a basic necessity for every investment portfolio, considering the uncertainty of life itself. The policyholder will naturally want to provide their family with the same lifestyle and financial security upon their absence because of an unfortunate/sudden demise. This is where term insurance or other forms of life insurance come into the picture. 

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What is term insurance? 

Term Insurance is a sub-type of life insurance that offers financial safety to the policyholder’s family in the tragic event of their unfortunate demise during the policy tenure. These plans pay out a death benefit to the nominees of the insured individual in this case. They offer financial safety for the family for a specific duration or term. Premiums are usually more affordable for these plans than many other types of life insurance plans. You can utilize a term insurance calculator to calculate the payable premium amount. 

Which is the right age to invest in a term insurance plan?                                           

As mentioned initially, there is no hard and fast rule in place that dictates the right age to invest in a term insurance plan. You can purchase them once you are 18 and upwards, usually until age 65. However, here are some core points that you should keep in mind for every age/life stage: 

People should not wait until they are in their 60s to purchase term insurance. Hence, it can be said that the 20s and 30s are the best time to buy term insurance. Premiums are lower, and it will safeguard the family financially. The best part is that you can also get tax benefits on your investment. 

Why should you invest in term insurance? 

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You should consider investments in term insurance for several reasons. Some of them include the following: 

Conclusion

You must purchase term insurance coverage to live a stress-free and financially secure life. However, you should examine a few things before finalizing a term plan. The insurance coverage should be based on the insured’s annual income and financial objectives. Many people choose inadequate coverage, which can later result in financial stress for the family. Additionally, some people opt for a brief coverage term to pay less in premiums. However, if the policy term is short, you must purchase new policies after the policy period concludes. You might not receive the same premiums from a new term insurance plan and spend more.

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Additionally, if you neglect to reveal information regarding current medical conditions or smoking habits while purchasing the plan, your family could lose out on the sum assured. As a result, the purpose of buying a term plan would be defeated. Simply put, do your homework, comprehend the terms and circumstances, and purchase term insurance when you are young.

First published on: 30-09-2022 at 04:09:49 pm
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