5 min read
Updated on Oct 11, 2022
In life we prioritize things depending on the aims and aspirations that we want to achieve. However, not always we can expect life to move as per our desire. There are many times when we have to change plans and act according to the need of the hour. Financial matters also work in the same way. We plan to save a certain amount for a particular task, but have to change it at the last moment if any other priority expense crops up or in case of any urgency.
Thus, having a financial security in the form of an insurance plan is a must. By getting a term insurance plan early on in life you can secure the life of your family in a better way. Though, there is no term insurance age limit, but buying a term plan early is better as it gives you an edge, and allows you to pay low premiums and enjoy greater coverage.
Also Read: Best 1 Crore Term Insurance Plans In India
In this write-up, we will discuss term insurance in detail to make you understand the need of buying a term insurance at a younger stage to avail the benefits.
Term insurance is a type of life insurance plan that provide coverage for your life. In term insurance, if the owner of the policy dies during the tenure of the plan, the beneficiary receives death benefit in the form of sum assured. However, it requires the term plan to remain active at the time of the death of the policy holder.
Though term plan can’t cover for the loss of the insured person, but it ensures that the family members of the policy owner doesn’t suffer because of financial burdens or stay deprive of the basic requirements of life.
Also, advantages of some term plans are not limited to death benefits but go beyond that. Such plans also cover the insured against any disability, including partial and permanent disability, caused by illness etc.
Though, there is no set rule on life insurance age limit, there are many benefits of buying a term plan early on in life. Let us now consider the various types of term plans that are available in the market.
Term plans are efficient plans crafted to ensure financial protection to people. These plans are divided into different categories to suit the need of consumer.
Level Term – This plan is the most basic one, where the sum assured doesn’t change. In the event of policy holder’s demise, the nominee receives the entire payment of death benefit.
Premium Return – This plan offers better maturity advantages. Thus, in this case if the policy owner survives the duration of the plan, he/she gets the premium refunded by the insurance provider.
Increasing Term – As the name suggests, this plan allow the policy holder to increase the sum assured of the policy annually, though the premium rate of the plan stays the same.
Decreasing Term – In this plan, the policy owner can reduce the sum assured amount of the insurance with the passing of years. As such, with age the needs of people decreases, so this plan allow individuals to decrease the amount of sum assured.
Convertible Term – The benefit of convertible plan is that it allow consumers to change to another policy during the tenure of the plan. So, with convertible plan, you can choose to switch from term policies to whole insurance policies. However, you have to wait till the term reaches its fifth year to do so.
Term with Rider – Some term plans offer rider benefits to cover you for any critical illness, death due to accidents, or cover against disability etc. These add-ons can be enjoyed in a single term plan by paying extra premium.
Below are the factors why you must buy a term plan early on in life:
So with all the above details, you now know the benefits of buying a plan at a younger age. Moreover, the above details will also help you to easily pick a term plan to suit you appropriately. There is no age limit for life insurance in India and there is nothing to worry about while planning to buy a term plan. All you need is to compare and read the policy conditions. Buying online might help you in this regard.
PayBima is an Indian insurance aggregator on a mission to make insurance simple for people. PayBima is the Digital arm of the already established and trusted Mahindra Insurance Brokers Ltd., a reputed name in the insurance broking industry with 17 years of experience. PayBima promises you the easy-to-access online platform to buy insurance policies, and also extend their unrelented assistance with all your policy related queries and services.
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