With every life stage, it is understood that most of us also revaluate our finances and take another look at our life goals. And it is not only true in the case of life goals as people also start adding expenses and liabilities to their budget as a grand wedding, pregnancy expenses, taking care of a child, etc., are all very expensive affairs in themselves. And with changing goals and financial plans, it is imperative to have life insurance that adapts to it.
You can be a single parent, retired already, or recently married and about to start your family planning, what is common here is the need for financial stability in the present and the future. A term plan can offer your family this financial security, and all you have to do is use a term plan premium calculator to plan for your loved ones’ debt-free future.
Let us check out why age plays an important role in helping you choose the right term plan:
- For Individuals In Their Twenties
When you are in your 20s, buying a term insurance policy might be one of the last things on your mind. However, buying an insurance policy early in life is one of the best decisions you can make. At a younger age, you probably have just started earning, are not physically and mentally strained yet and might not have a lot of responsibilities or debt on you.
Moreover, your premiums will be lesser, and you can opt for a higher sum assured since there are fewer chances of having a major illness or medical history when people are still in their twenties. You can calculate your term plan premiums using a term plan premium calculator and plan your finances well in advance.
- For The Newlyweds
Once you get married, it is probably a good time to be thinking about planning your finances and securing your spouse’s future, if you have not already. A term insurance policy is quite straightforward with its purpose. You can secure your spouse’s future and provide income protection for the entire family in your absence.
You can simply use the term plan calculator to know how much premium amount you will have to pay and then decide the payment frequency for your premiums accordingly.
It might be one of the best gifts for your partner and your family as they can live a life free of stress and financial woes with the cover you leave behind from your term insurance.
- For Parents With Children
Every parent wants to do right by their children and will often try to provide them with all the necessities while saving for their children’s future goals as well. When you are in your late thirties, it is an ideal time to get your ducks in a row and start planning for your family’s future and security right away.
This pandemic has given a whole new vision to people all over the globe, and we can see a slow but steady shift of parents in their late thirties considering term insurance and wanting to provide for their family and children, even in their absence.
Right from rising inflation rates to increasing educational expenses, and from a higher standard of life to increasing medicare and hospital bills, there is a lot that a term insurance lump sum amount can provide for your family.
- For Individuals With Critical Illness (Any Age)
Another aspect that helps you choose the right term plan is taking your current health into account. For example, if you have been diagnosed with a critical illness, then declaring it for your term plan is crucial as that will play an important role in determining your sum assured and premium amount.
You also need to keep in mind that the older you are, the higher your term plan premium if you are diagnosed with a critical illness. Use a term plan calculator to understand how much premium you must pay based on your current age and desired sum assured.
Bottom-line: Buy a term plan as soon as possible
Eventually, remember that no matter what life stage you decide to buy a term plan in, it will remain a very important part of your financial planning and crucial towards securing your family’s future. However, the sooner you plan to buy a term plan, the more beneficial it would be as you are young and healthy and can get a higher sum assured for a lower premium.
Besides this, you also get to enjoy income tax benefit under the Income Tax Act of 1961, for as long as you are paying your premiums!
Remember to use a term plan premium calculator to calculate your income tax for the financial year and know how much of it can you save with your premiums. You can secure their tomorrow from today itself and plan for their stress-free and debt-free future even in your absence, by choosing the right term plan today.
