Term insurance plans are one of the best investment instruments that can be beneficial if you want to guarantee financial soundness for your family after your death. Every insurance company offers a range of term insurance options to choose from, each of them specially designed to suit the individual needs of every investor. A very valid question that often plagues investors is- when is the right time to buy term insurance plans? What makes this question all the more crucial is that most potential investors are oblivious to the prospects of early investments in term plans. The widespread notion is that term insurance plans are an excellent investment if your age is above 35 years, since they are well-settled by then. However, it is quite a misconception. On the contrary, the earlier you start investing in term insurance plans, the better it is. By investing in a good term insurance plan at a young age, you will have to incur lesser premium payout. Good investors usually Invest early in term insurance as their main goal to reap as much benefits as possible. Yet another reason in favor of starting early is that there are lesser diseases to riddle you. On the other hand, the older you get, the higher are your chances of being afflicted by various diseases, which in turn, lead to a rise in your premium. Let us take a look at the implications of availing term insurance plans at different stages of your life:
1. Early twenties and unmarried: since in today’s times, most people choose to marry late, they are an added income to their existing families. Their expenses are much less, which makes it a conducive time to create a financial cushion for their later years. Another advantage is that, term insurance at this phase is quite affordable, and aids in tax-saving.
2. Mid/late twenties and married: this is a crucial stage, as you have just embarked on, or are soon going to start a new journey of life. If you are a newlywed, this is the perfect time to invest, which will pave the way for reliable financial backing for your family which is bound to grow over the course of a few years. However, note that at this phase the term insurance plan should have more coverage as compared to your previous investments. With the growing responsibilities of a parent, you need to spare ample thought to your children’s education, extra-curricular activities, medical expenses, and so on. Make sure that your long-term debts are covered and you get enough security for yourself and your family with a higher protection term policy.
3. Retirement plans: although this is quite an unfit time to buy term insurance plans, once your kids get into college or begin to pursue higher education, it is always advisable to start planning for your twilight years. You can settle for a few good pension plans that will secure funds for you and your lifestyle once your retired life begins. You should also take into consideration that in the event of your premature demise, how your family will support their lifestyles.