Planning to buy term insurance? You may have heard while it is never too late to get coverage, buying a term plan ought to be done as early in life as possible. One of the central reasons that shape this advice is the fact that premium rates for life plans are bound to increase with the age of the life assured.

You can check an online term insurance calculator to compare the premium rates at various ages to understand how this may play out. But apart from that, there are several reasons why you may want to consider life insurance at an early age.

Let’s take a look at some of the most obvious reasons why you should get term life insurance as early in life as possible.

·      Lower Premiums

Insurers calculate premiums based on the policyholder’s age and health. This is done with the assumption that the older you get, the higher the mortality risk. Younger individuals are generally healthier, and the risk to the insurer is lower, resulting in reduced premiums. Locking in low premiums early allows you to maintain affordable life insurance coverage as you age.

·      Longer Coverage Period

Purchasing a term plan early allows you to enjoy longer coverage periods. If you buy a term insurance policy in your 20s, you can opt for a policy term of 30 to 40 years, ensuring your family’s financial protection during your prime earning years. This long-term coverage provides peace of mind, knowing that your family is secure against unforeseen circumstances for decades.

·      Health Benefits

As you grow older, the chances of developing health issues increase, which could result in higher premiums or even the rejection of your application for life insurance. By buying a term plan early, you can secure coverage without worrying about future health problems that may complicate your insurance application.

·      Financial Security for Dependents

Buying a term plan early helps establish a financial foundation for your dependents. Whether you are married or have ageing parents, a term insurance plan ensures that your loved ones are financially protected in case of your untimely death. The payout from the policy can cover expenses such as loans, education, and daily living costs.

·      Use of Term Insurance Calculator

Before purchasing a policy, it’s wise to use a term insurance calculator to determine how much coverage you need and what your premium will be. This tool helps young buyers make informed decisions by estimating the ideal sum assured based on their financial obligations, income, and family needs.

·      Tax Benefits

Term insurance also provides tax-saving benefits under Indian tax laws for taxpayers under the old regime. Premiums paid toward a term plan are eligible for tax deductions under Section 80C, and the death benefit is exempt from taxes under Section 10(10D). By purchasing term insurance at an early age, you can take advantage of these tax benefits for a longer period.

Buying a term insurance policy early in life offers multiple advantages, but most importantly, it offers financial protection for your loved ones. By securing life insurance at a young age, you ensure financial stability and peace of mind for the future.