Individuals often take some of their important life decisions in their 30s. From getting married to investing in properties, they meet several financial decisions at this stage of their lives.
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While you are at it, you should also think about securing your future with a life insurance plan to safeguard your close ones and prevent them from struggling in your absence. This article comprises all the reasons why it is ideal to invest in term insurance plans in your 30s.
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Top reasons to avail of a term insurance plan when you are 30
Here is a list of advantages you will get when you obtain a term insurance policy before you turn 30:
● Comparatively lower premiums
Developing several medical conditions is inevitable when you grow older. It is generally assumed that in your 30s, you will lead a healthier lifestyle. This is why the chance of developing critical diseases at that age is moderately lower. When you are investing in a term insurance policy at the age of 30, you will automatically get cost-effective options.
This also reduces the insurance premiums you are liable to pay. However, remember that individuals also need to go through medical check-ups and pathology tests to prove that they do not have any critical diseases to get the benefits of such policies. Hence, the premium amount might vary depending on individuals’ health conditions.
● Access to tax benefits
Even though tax exemptions will be available on term insurance plans whenever you avail them, getting such benefits at an early age helps more. As per the norms of Section 80C of the Income Tax Act, you get to claim a deduction of up to Rs.1.5 lakh annually. In case you go ahead with an add-on service like a critical insurance cover on top of his/her term insurance, Section 80D of ITA offers further savings.
Such provisions of Income Tax Act allow you to minimise your taxable income at an early age. This facility automatically helps in managing your finances better as you can make substantial savings each year.
● Ensures family’s financial stability
During the 30s, there can be several life goals that one needs to meet. To fulfil all of that, individuals often resort to credit facilities, be it an education loan for their children or a car loan for personal use. Such liabilities will automatically become challenging to meet for one’s family after his/her demise.
To help your family in keeping up with these monetary liabilities, it is ideal to avail of a term insurance plan in your 30s. This way, your close ones will still be able to sustain themselves, hence avoiding the loss of your income.
● Availability of innovative riders
Opting for riders or add-on facilities on top of your term insurance policy means you are availing more benefits along with the basic sum assured. Such plans allow you to avail facilities like a critical illness cover that are immediately available after your diagnosis.
Since there is a host of rider options available, it might seem difficult for one to choose the suitable one. Pick the suitable one for yourself after comparing different insurance providers.
It is always advisable to take up such decisions in the 30s or the early stage of your career. This is mainly because handling the financial liabilities associated with this is easier at this stage.
However, before availing of term insurance plans, it is imperative to consider the policy terms and claim settlement ratio. It will help you to understand the efficiency of an insurance provider and make an informed decision.
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