Young Indians are becoming more aware of the need to protect their future. One popular choice is a term plan, which offers financial safety for your family if something happens to you. Buying a term plan early comes with many advantages, like lower premiums, longer coverage, and better chances of getting additional benefits.
Why Buying Term Insurance Early Is Becoming a Smart Financial Move for Young Indians
A term plan is a simple type of life cover. If something happens to the policyholder during the policy term, the family gets a lump sum amount. There are no returns if the policyholder survives the term, which makes it affordable. It is called “pure protection” because it focuses only on giving support to your loved ones in your absence.
Why Are Young People Choosing It Early?
More and more young Indians are choosing a term plan at the start of their careers. Here’s why:
Lower Premiums When You Start Early
Premiums are the money you pay to keep your policy active. If you are young and healthy, your premium for a term plan can be much lower. For example, someone in their 20s might pay ₹500 a month for ₹1 crore cover, while someone in their 40s may need to pay ₹2,000 for the same cover. This means starting early helps you save money over time. Premiums also stay fixed for the full term.
Longer Policy Coverage
Buying a term plan early gives you a longer protection period. If you start at 25, you can get coverage for 35 to 40 years, keeping your family safe during your major life responsibilities like paying off loans or raising children. Starting late often means shorter policy terms and fewer choices.
Chance to Add More Benefits
You can add extra features called “riders” to your term plan when you buy it. Riders give additional support. These include:
- Critical illness cover
- Accidental death cover
- Disability cover
When you’re young, adding these riders is easier and more affordable. This makes the plan stronger and more useful.
Better Financial Planning with Digital Tools
Many young people now use simple online tools to plan their future. A ulip calculator is one such tool that helps people understand how different options in protection and savings plans work. While a term plan gives safety, other plans like ULIPs can help with future savings. Using tools like the ulip calculator gives a clearer idea of how to plan your budget and reach long-term goals.
Supports Future Family Goals
A term plan helps protect family needs like:
- School or college fees
- Home loan repayments
- Medical bills
- Monthly living costs
This makes sure your family doesn’t have to worry if you are not around. Young people today want to be responsible for their loved ones and this plan supports that.
Protects Against Health Issues Later
As you grow older, your health might change. Buying a term plan early means you can get approved without much hassle. If you wait and health problems arise, the premium may increase or the company may deny your request. Starting early protects your future no matter how your health changes.
Tax Savings
Buying a term plan also comes with tax benefits. As per the Income Tax Act of India,1961:
- Section 80C: You can claim deductions up to ₹1.5 lakh for the premium paid. This is applicable if you opt for the old tax regime.
- Section 10(10D): The amount your family gets in case of a claim is tax-free.
This is helpful while planning your tax savings each year.
Common Myths About Term Plans
Let’s clear up some common misunderstandings:
Myth 1: I’m too young for this.
Reality: Young people get lower premiums and longer coverage.
Myth 2: I don’t have dependents.
Reality: Term plans also cover loans and other responsibilities.
Myth 3: My employer already gives insurance.
Reality: Employer plans are limited and end when you leave the job.
Use a ULIP Calculator to Plan Ahead
Although term plans focus on protection, many young people also want to grow their savings. A ulip calculator helps you explore those options. This tool shows how your savings may grow over time and how much you may need to reach your goals, like buying a home or planning for retirement.
Using both—a term plan for safety and ULIP for savings—gives you a well-rounded plan. Always make sure to understand the product features and charges of any plan that you buy.
Conclusion
The current generation of Indians is developing better financial judgment. Young Indians are now progressing toward safety by selecting term insurance plans as soon as possible. A term plan stands as an easily accessible, affordable, and reliable solution that protects their family security. By using the ulip calculator, along with other simple tools, you will be able to see your financial choices and develop plans for a better financial future. The early purchase of term plans serves as much more than protection since it creates both added assurance and increased security.
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