As we enter in adulthood, we realize that there are manyresponsibilities, which need to be carried out as we grow. We start with our career, start earning and thus, begin to build future for ourselves. Many of us plan to buy a house, car or go on foreign tours along with enjoying life to the fullest with the self-earned money. All this is important, however, equally essential is to start taking steps towards building your future and investing your earning properly.
According to the investment experts,one can reap great benefits from the investment products such as life insurances, mutual funds if done in the early ages.Now when you have to choose from one of the life insurance plans, you should buy term insurance plan to enjoy a better life in your future.
Let’s see what a term plan is and why do the experts recommend it.
Term insurance is a pure protection plan. Getting a term plan in your 20s offers the best benefits such as cash leverage, high flexibility, low premiums, high sum assured levels to name a few. Along with these, below are some more important benefits.
- Tax benefits- On the premium which you have paid, you can claim a tax deduction up to Rs 1.5 lakh under the Section 80 C and can also enjoy the tax benefits under Section 10 (10D) on the monetaryreturns,which are received in case of an unfortunate event.
- Fixed rate throughout your policy term, so you don’t have to pay additional from your pocket.
- It is very cost effective and helps you in saving your extra bucks.
- Premiums are affordable; term plans are known to have highly cost-effective premiums so even if you have just started earning, you can easily afford to buy term insurance.
The plan is very affordable at this age. When we compare the premiums of term plans to other insurance plans, it is seen that the premiums of term plans are likely to be much lower. This is because there is no investment element in the amount which is insured. The premiums may vary from one company to the other, so the best way to identify the right value of the premium is to choose the option of term insurance calculator. With the help of a calculator, you can easily get to know the premiums of different companies and select the suitable plan as per your budget.
As you can compare the premiums online easily, you can also buy the term plan online faster. It is also considered as the safest thing and also offers flexibility in choosing the plans and riders. Online term plan buying is anytime cheaper than by buying it through any agents or directly going to the insurance companies. Online term insurance plan buying facility also saves your time along with the cost.
So, consider buying a term plan in your 20s as it proves to be very beneficial in that period.