Reasons to buy a term plan early in life

1. Lower Premiums:

• For example, a salaried male who doesn't smoke would pay the below premium for a 1 Cr Max Life Term plan as per his age

• From the above graph, a 25 year old would be paying Rs. 9,587 per year vs a 40 year old who would have to pay Rs. 18,349 (almost 2 times higher premium)
• So, it is better to take a Term Plan before 30years age at-least to get it at a low premium.
• Even if you are above 30, it is never too late, Better to buy now than delay or regret later. Contact us to know best Term plans in India

Data : as on Dec 2024.

2. Health Considerations:

• According to a report by the Insurance Regulatory and Development Authority of India (IRDAI), as the age of policyholders is increasing the incidence of health issues are also increasing. For instance, the probability of developing lifestyle diseases like diabetes and hypertension increases significantly after the age of 30. Securing a policy at a younger age can help avoid higher premiums associated with these health risks.

3. Financial Security for Dependents:

• A term plan of ₹1 crore can provide substantial financial support. For example, if a person earning ₹10 lakh per annum passes away, the term plan can replace their income for their family, ensuring they can maintain their standard of living, pay for children's education, and cover household expenses.

4. Longer Coverage Duration:

• If you buy a term plan at 25 for 35 years, you will be covered until you are 60. This is crucial as many financial obligations, such as children's education and home loans, extend into this period. The average age of marriage in India is around 28-30 years, and many people start families soon after, making early coverage essential.

5. Peace of Mind:

• The emotional aspect of having a term plan cannot be quantified easily, but studies show that individuals with life insurance report higher levels of financial security and peace of mind. Knowing that your family will be taken care of can significantly reduce stress. 

In summary, the numbers and statistics relevant to India highlight the financial advantages of purchasing a term plan early in life. Lower premiums, health considerations, and the need for financial security for dependents are compelling reasons to consider this important financial product. 

Best Term Insurance Policies for 2025 in India

• Max Life Smart Secure Plus
• Tata AIA Maha Raksha Supreme
• Bajaj Allianz Smart Protect Goal
• ICICI Prudential iProtect Smart

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Thanks,

Honvest Team.