The significance of financial planning for working professionals cannot be overstated. If you want to give your family financial security and stability even if you are not around, you need to include term insurance in your investment strategy. Is it good to buy term insurance plan in 2025 / 2026? Continue reading to learn why a 2025 term insurance plan is a suitable alternative.
In 2025, when living expenses have skyrocketed, having a term insurance policy is crucial, especially if you are the family’s sole provider. Let’s first define what term insurance is.
What is Term insurance?
The term insurance is an investment plan that offers a death benefit to the policyholder’s family after his demise. Term insurance is easily accessible at preferred premium rates with a high assured sum. Investing in Term insurance becomes necessary, especially if you have a family that depends on you. Eventualities can happen anytime, and assuring a financially stable life for your family allows them to fulfil their financial dreams even in your absence.
When Should You Buy a Term insurance?
Ideally, you should purchase term insurance as soon as possible, even with your first paycheck. If you buy term insurance early, you may be able to get a higher sum insured for less money. Furthermore, there is no upper limit on the age at which you can purchase a term insurance policy; you can do so at any time.
Why Should You Buy a Term Insurance Plan?
There are several benefits of having a term insurance plan apart from the financial safety that your family gets in your absence.
High Sum Assured at Affordable Premiums
Although the policyholder’s age determines the premium, the main advantage of having a term plan is that you may have a large sum insured for a much lower cost. As a result, the earlier you bought the plan, the lower your premium would be. You can also purchase a term insurance plan online by going to your insurer’s website.
Most Preferred Investment Plan
The key reason term insurance plans are preferred among people is the simplicity. This pure life cover assures the sum assured to the immediate dependants in the absence of the policy holder. Moreover, it just requires you to pay the premium and get the plan.
Tax Benefits
Term insurance plans also provide tax benefits to the policyholder. You can claim tax benefits up to 1.5 lakhs under Section 80C of Income tax act. In fact, the entire payout is tax exempted under Section 10(10D).
What Distinguishes Term Insurance from Life Insurance?
Observations that are crucial. While whole life insurance has a cash value component that can be accessed at any moment throughout your lifetime, term life insurance is “pure” insurance. If you pay your premiums on time, whole life insurance will protect you for the rest of your life, unlike term insurance, which only provides coverage for a set period of time.
What are the Benefits of Term Life Insurance?
These are the main benefits of purchasing term life insurance like: high sum assured for cheap premium choices for simple to understand death benefit payment rider’s additional income tax advantages, protection from accidental death benefits, critical illness, and premium option refund.
What is the Ideal Age for Term Insurance Plan?
Between the ages of 18 and 65, term insurance can be purchased. However, your twenties and thirties are excellent years to begin looking for insurance and making future plans for your family.
What is the purpose of Term Insurance?
Term insurance is an essential, straightforward life insurance product for your family’s financial security. A term plan provides comprehensive coverage at an affordable price, ensuring that your family can carry on living their current lifestyle in the future.
Therefore, making a term plan investment and ensuring your family’s financial stability are essential. Term insurance has a purpose and meaning when purchased at different ages.
Final Word
A term insurance plan is an agreement between the policyholder and the insurer, so it is necessary to look for a trusted insurance provider when buying a term insurance plan. Investing your time in researching the term insurance plans and choosing a sum that would fulfil your family requirements in your absence is prudent. Another way is to look for the claim settlement ratio before finalizing your term plan with your preferred insurer. After you have finalized a few plans, go for the one that offers maximum benefit at a competitive cost.
