This is not the first time, and it won’t be the last when you hear about how life is unpredictable and that we must make the right decisions at the right time to sail through tough times.
Investing in life insurance is one such decision that often gets neglected by young adults who falsely believe that it is something one does later in their life.
Investment decisions should never be taken one-dimensionally. They require a lot of planning, research, evaluation of your needs, investment capability, risk preference, and more such factors that help you choose the best financial instrument for your portfolio.
Imagine a scenario when your tax filing date is near, and you are figuring out How to file ITR to save maximum tax when someone suggests that you can invest in life insurance.While as a long-term financial instrument, the best term plan in India will be able to save you much tax but will it serve your purpose when the time comes? Probably not.
Term insurance is a necessary product that you need in your portfolio, not for you but your loved ones. This is the cheapest, most comprehensive, tax-saving instrument you can invest in. The best term plan in India will have the lowest premium because these are pure-insurance, risk-free products that offer you and your loved ones the assurance that in case of your passing, they would be cared for financially. This financial security could mean everything to a family that has only one breadwinner, YOU.
Investing in Term Insurance at Various Life Stages
If financial advisors are to be believed, then the best time to invest in term insurance is now. You know why? Because the sooner you start, the cheaper your policy will be. Your payable premium at the age of 27 will be much less than what you will pay at the age of 45, not to mention the added responsibilities of a spouse and child may even discourage you from taking on a financial burden of a premium.
However, if you start in your late 20s, you are not only lower risk for the insurer who will be happy to offer you a small premium, but also have the benefit of longer tenure that will make the policy cheaper in the long-run. But most importantly, the best term plan in Indiawill give you the flexibility to enhance your cover at various life stages, such as when you get married and when you become a parent.
You can further customize your coverage by adding rider options such as critical illness rider that will safeguard you from debilitating hospital bills and treatment costs if you are diagnosed with a life-threatening disease. Similarly, many other riders can be supplemented to your base policy to reduce the risk of life’s uncertainties and keep you financially protected at all times.
The best term plan in India comes loaded with features that make them useful for someone who is looking to secure their family’s future.
Let us now see how term insurance protects you at every stage of your life and provide your loved ones with comprehensive financial assistance that will keep them afloat even when you are no longer around.
You may be single right now with no responsibilities on your shoulder. However, it won’t be the case forever. Once you marry and start a family, you would have the additional responsibility to take care of your partner and child. The best term plan in India comes with a feature that allows you to expand the coverage of your policy by 50% when you get married. Doing so, you can easily extend your financial protection to your partner who will receive the death benefit in case something happens to you. This money will help them fulfil the dreams you saw together and continue to live their best life as you would have wanted them to live.
- Child’s education
Life insurance is not just about securing your family after your passing but also shoulders your financial responsibility when you become a parent. Apart from enhancing the coverage of your term insurance by 25% after your first child, you can also invest in a child plan that allows you to put aside funds that will pay for their higher studies when the time comes. Moreover, this plan will remain active even if you are no longer there. As a result, your child’s future needs are taken care of, without putting any financial burden on your existing savings.
- New business
If you are a self-employed professional, then you do not have a company-provided life insurance policy to keep you protected. A small business owner often put their finances up for business expenses. There may even be unpaid loans that you may have taken to fund your business venture. By investing in the best term plan in India, you will be able to provide a safety net to your family to protect their financial interests.
Term insurance plans these days come with an adequate coverage that can help your family in repaying the loans that you took to expand your business. Additionally, the policy also secures your family’s financial future when you are gone.
Therefore, term plans are ideal for small businessowners as they are a cost-effective way to mitigate the risks of life’s uncertainties.
Your life is a series of milestones that you achieve along the way. You can secure each of these milestones by making the right investment decision and investing in a robust term policy to stay protected.