Best age to start a term plan

Life and death are matters of uncertainty, but getting insurance is not! Losing someone can never be compensated, but the financial loss that occurs due to the demise of the earning member of a family can be taken care of with term insurance.

What is a Term Plan?
A Term plan is a form of life insurance that financially safeguards the policyholder’s near and dear ones after their untimely death. The term plan usually has economical premium costs that can be afforded even by individuals of mid-level or lower-income groups.  The Tem plan is different from life insurance because it protects the policyholder only for the stipulated period that is mentioned in the policy. Multiple term insurance policies have varied benefits apart from the common life cover. There is no such best age or best term policy; it all depends on the type of term insurance that suits you better.

Always Better to Start early
As already mentioned, there is no such defined age to getting term insurance, but it is better if you purchase a plan early in your life. Multiple reasons that support this idea.

1. Premium Increases with Age
   It is usually observed that at a young age, the fitness levels are at its best. There are fewer chances of developing any kind of medical conditions such as diabetes, heart diseases etc. This is also the primary reason why term plan premiums are at its lowest for the young, i.e. in the 20-year age bracket. Gradually with the increase in age, the premium also increases, even though you might not develop any serious health issue. The underlying assumption entails that most of us are in a sedentary lifestyle, which increases the risk of catching any lifestyle disease.
2. Your Dependants Need the Protection
   It is imperative to understand the financial value one has as an earning member of the family and what havoc can losing such a person create. A term plan financially protects your family from both short-term and long-term expenses. Whether it’s taking care of all day-to-day expenses, including school fees to one-time investment such as a prospective home loan. There are multiple options, depending on the sum of money, that can be availed through the insurance plan. So, before purchasing a term plan, all you need to evaluate all the future expenses that are to be incurred.
3. Stress-Free Life
   Term plans allow flexibility to make amendments to the sum of money insured. So, if you have taken the policy at a young age of 25, you can still increase or decrease its amount depending on the future course of your financial actions. In the case of marriage or child-birth, you can easily increase the amount as the number of dependants has grown, thereby providing greater financial safeguards. On the other hand, once your children have grown up to become independent themselves, you can reduce the premium amount accordingly.
4. Save Income Taxes
   The best part of any investment is to find out whether it can act as a tax-saving instrument or not. In this regard, term insurance serves a dual purpose – protects your life and save your taxes. Term plans are the best tax saving mechanisms for earning individuals. The premium paid up to Rs. 1, 50,000 per annum is eligible to tax benefits under section 80C of the Income Tax Act. Moreover, the proceeds that one receives after the term plan matures are also exempted from taxes under section 10 (10D) of the Income Tax Act.

It Is Never Too Late
As discussed in detail, that young age provides better incentives for a term plan; it is always better to buy an insurance policy irrespective of your age. If you are in your 30s, 40s or even 50s purchasing a term plan will only benefit more than not having it. Even though the premium cost almost doubles, it is still worth it that your dependents are financially protected in case of unfortunate mishappenings. Moreover, if you have unhealthy habits, including smoking, your premium is likely to increase by a good margin. However, having an insurance policy at any age keeps you and your loved ones financially protected.