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Buy a term plan before its too late

Term Plan

The young generation of boys and girls in their early 20s who just begin their career and start working, hardly think about opting an insurance term plan.  Most of them think that they are too young and do not have any liability or responsibility, so why waste money buying a term plan? However, such decisions are generally regretted in the later stages of life. On the other hand, they are also not advised by the people around them on financial planning and the future benefits of purchasing a term plan of high sum assured while they are young. This blog is exactly going to do the same.

With the day to increased pressure and competition in education, jobs and work. Out lifestyle has changed a lot and shows the negative results on our health if not taken care of at the right time. I recently came with an incident where the head of the family died due to few uncertain reasons at the age of 48. If we see it normally 48 is not the age that we think of anyone’s death. As at this age our kids are at their growing age and need a lot of mental, physical and financial support. But his work pressure was not allowing him to take rest or to look after this own health. This resulted in the sudden demise of a family member who was responsible to look after his family.

After the incident, as I was quite close to the family, got to know that the person was well aware of the unexpected life situations and he prepared a strong financial back support for his family. Though, we cannot say that the money can fulfill his vacuum but this strong step made his family to stand early and fight against the odd situations.

There are thousands of reasons to purchase an insurance term plan of high sum assured at an early age. However, the reasons vary from person to person and their specific needs. If we look at the benefits of purchasing an insurance term plan at a younger age, first comes the premium. The premium to be paid towards your term plan bought in the early age is cheaper. The recent research study found on the latest mortality table being published by the Institute of Actuaries of India 2012-14 proves that 931 people die between age 25 and 28 out of a million people die to any uncertain reasons. This graph shows an increase to 2579 deaths between the age of 45 and 50. This study clearly indicates that the premium paid is likely to be more than double when you purchase a policy at the age of 40 compared to age 23 or 25. Hence, the cost of the product is a big driver in case of term insurance plans.

Generally, most of the dreaded diseases are diagnosed or faced post the mid-30s when an inactive life kicks in post marriage and kids along with the physical and mental pressure of work. This means that a term insurance plan in the late 30s or early 40s is definitely going to cost you more and also require many medical tests because a customer might have got some stress related diseases like diabetes, hypertension, etc. So, an early age entry into a term plan is a very sensible decision.

Also, if a customer decides to purchase a term plan at a later stage in life, then this may result in high chances of not getting the complete be benefits. This means that you loose the opportunity to cover your family. In the above detailed research given by Institute of Actuaries, 931 out of million people die between age 25 and 28. So, if the protection is not being taken by these 931 people, they loose the opportunity to cover their families.

Therefore, it is highly recommended to buy a term plan as soon as you start your career and receive your very first salary to ensure the safety and better future of your entire family. Every year with an increase in age, it is going to cost more and more and require additional medical check-up’s. This might not give you an opportunity to protect your family. Hence, no more wait and take the one now!


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