Young adults rarely think about long-term planning and quite understandably so, since people are generally in the pink of their health in their youth. However, given the changing times and a continuous rise in medical issues, it is becoming increasingly important for people of all ages to secure themselves and their families with life insurance. A term plan is thus essential today.
Here are some things about term insurance for young adults that you must know.
Importance of term insurance for young adults
Term insurance for youngsters is paramount in today’s times for a number of reasons:
- Rising health issues: Gone are the days when poor health used to be associated with old age. These days, even children are falling victim to severe medical problems. This brings about a need to financially secure yourself and your loved ones, well in advance. With term insurance, you leave behind a significant pool of money in case something were to happen to you and you were no longer there to take care of your family. The optional critical illness cover that can be added to a term plan also provides you with the necessary funds to combat a serious illness
- Outstanding loans: If you have taken loans to fulfil your goals such as buying a house or purchasing a car, you will require a financial cushion in case you were no longer able to repay them. Permanent disability, long-term ailments, etc. can also be some scenarios where you might lose your ability to earn. Term insurance can provide for you and your family in all of these circumstances
- Security for life: In case of an unfortunate incident, the future interests of your dependents can be safeguarded with a term plan. The sum assured from a term insurance policy can be used for expenses such as your children’s education or your spouse’s day-to-day needs. This can offer them a chance to continue living their lives with dignity
Reasons why you should buy term insurance at an early age
In addition to providing financial protection for your dependents, term insurance for young people also comes with a host of other advantages. Here are some of them:
- Lower premiums: The premium for term insurance is considerably lower for youngsters. As you age, you are likely to have more health complications which can increase the cost of premiums. So, the sooner you purchase a term plan, the more money you can save over time. The chances of getting rejected by the insurer are also significantly low when you are young
- Flexibility: Term plans come with the option of increasing your life cover at important milestones like marriage and 1st & 2nd childbirth, as per your changing needs
- Tax benefits: Term plans offer advantages in the present too. You can get tax* benefits under Section 80C, Section 80D, and Section 10(10D) of the Income Tax Act, 1961
Buying term insurance is a crucial financial decision that should be taken as early as possible in life. However, before you purchase a plan, you must look at a policy that offers wholesome benefits. ICICI Pru iProtect Smart Plan comes with many useful features that take care of your every need. The plan is highly affordable, with a life cover of ₹ 1 crore starting at just ₹ 490^/- per month. The policy comes with built-in terminal illness# and permanent disability~ benefits. You get full claim payout in case of terminal illness and waiver of premiums in case of permanent disability. The optional critical illness^^ cover includes 34 types of illnesses such as stroke, cancer, kidney issues, etc. This can offer your support in challenging times. You can also choose to get a larger cover in case of death due to an accident.
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All figures are as of 31st July 2020.