5 Strong Reasons to Buy a Term Insurance at a Younger Age - Greyfont

5 Strong Reasons to Buy a Term Insurance at a Younger Age

We all know how unpredictable life is, one of those harsh realities of life. But, we got to admit it.  Every person on the earth thinks he will live long and that nothing untoward will happen to him. However, we cannot take chances when it comes to life. What if you are the only bread winner of the family? Will your family be able to cope up with the emotional as well as financial loss with you suddenly leaving this world? Have you made any arrangements wherein they do not have to worry at least about the financial hardships, if any? You may never know when a severe illness or a road accident can delay your financial planning. At such times, a term insurance will come as a saviour.

Mentioned below are the reasons why you must not delay to buy a term insurance and should therefore buy when young.

1. Age

Age is one of the important components that determine your term insurance premium. At a younger age, there are fewer possibilities for you to fall sick and contract any diseases. But, as you age, your body tends to get more prone to diseases affecting your lifestyle and thereby deteriorating your health. This is the main reason for you to make higher will higher term insurance premium in case you plan of buying one at a later part of your life.


2. Better to plan early

With the abundance of term insurance plans today with different insurers today, buying term insurance plan as per your requirement has become easier. Usually a younger family has more number of dependents. As you age, your children may start earning and therefore you may have paid off your loans, thereby gathering enough savings to prevent any financial risk in your absence. Besides, you may also need more coverage to beat inflation up. This is how you can opt for a term insurance plan which avoids giving you a feeling of over or under insured at all times complementing you perfectly through different life stages.


3. Your family’s financial security

When you are young, you dream of leading a certain type of lifestyle and the same applies to your family too. You start earning well and apply for a housing loan as well as a car loan. Being the sole earner of the family, you are responsible for all the out-goings. Can you imagine the financial strain that your dependents may suffer in case of your untimely death? The home as well car loan repayments would be then borne by them. But, how will they manage for such finances? They will even find it difficult to manage their household and other day to day expenses without your contribution. Therefore, it is better not to delay to buy a term insurance plan and thereby safeguard your beloved family from any financial risks.


4. You are young and therefore lifetime medical conditions would be rare

Term insurance plan would be pocket-friendly when you are young and fit. But, if you procrastinate, be ready to shell out a higher premium because, you may end up getting a lifetime disease. Chances are that your term insurance application may get rejected too by your life insurance company. It would also be risker investment from the insurer’s perspective due to higher age.


5. Tax Savings

It is a human tendency to start looking out for varied options to save tax the moment you start getting hikes in your salary and growth in your career. To reduce your tax liability, you can also save tax through investments that fall in the tax saving laws and bracket.


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