Life Insurance: The Positive Effects Of Buying Term Plan Early On

If your looking to invest in a life insurance without much clarity about this investment choice, a term life policy is the simplest and safest bet. When one decides to bolsters their financial growth, the first step is always purchasing a life insurance.  A term insurance policy is a contract in which the insurance company promises to pay the sum assured under the policy to the nominee of the policyholder should the latter pass away during the tenure of the policy.

Key Features Of Term Policy

Fixed premium: The premium of a term policy is decided upon basis certain factors  like the age of an applicant, present health status, lifestyle choices, existing ailments, term insurance coverage, premium payment term, and sum assured, The premium amount is fixed for the entire tenure of the policy.

Fixed tenure: The longetivity of the policy or the duration for which the life cover can be availed under the policy is fixed at the begining of the contract.

Death benefit: The sum assured under the policy would be paid to the nominee of the policyholder. This amount is called the death benefit.

Perks Of Buying A Term Plan In Your 20's 30's 

Buying a term plan early in life is considerable one of the wisest financially-savy decisions youngsters can make as it frees indiviuals about how your family would meet their loan obligations or manage without the earnings that you provide. Therefore, you should purchase a term plan as soon as you begin to earn and assume financial obligations towards your life goals, such as building a house or getting married. Buying a term plan early brings the following benefits.

Lesser premium: Term plans have the lowest premiums among the different kinds of life insurance plans. However, if you purchase a term plan in your twenties, the premium would be still lesser than if you started in your forties.

More sum assured: If you purchase a term policy when you are young, you can get more sum assured because the insurance company will agree to more amount based on your estimated earnings potential over a longer period of time in the absence of any illness, or disability. 

Prolonged coverage period: It is obvious that if you buy term life insurance early in your professional life, you can get coverage over a longer period with extensions of tenure as required. This will give you the confidence to assume proportionate financial commitments without burdening your family in your absence.