For those who have recently joined the workforce and are savouring the newfound taste of financial independence, thinking about term life insurance may seem like the quintessential killjoy and understandably so. This is the age when you would be in the pink of your health and in all likelihood may not have too many liabilities to stress over. The responsibilities on your shoulders seem cumbersome and there is a great sense of comfort in knowing that your career has just started and you will have ample opportunities to cross various milestones.

Unsurprisingly, the thought of being financially prepared does not appear immediately on the horizon of most 25+ plus year olds who may have just started their financial journey. However, emergencies seldom befall on our lives with prior notification and as unlikely as they may seem, a certain  degree of preparedness can provide a buffer, ease things in your life in the post-crisis period and also safeguard your future from getting wildly derailed.

Buying a term insurance policy is one of the first steps you can take towards securing yourself and your loved ones in the advent of any such circumstances and the earlier you add one to your kitty, the better. 

For those belonging to the late 20s and early 30s age cohort, the HDFC Life Click 2 Protect Life can ensure that they and their loved ones will be protected in the unfortunate circumstance of the death knell ringing. Appropriate insurance coverage can safeguard family members from having to grapple with financial uncertainties in your absence. If you are contemplating getting term insurance but you are confused as to whether you need it right now and if it can be relegated for a later date, then here are a few advantages of getting term insurance early on. 

Lower premiums

Many people feel procrastinating getting a term insurance plan because they find it hard to justify the premium payments. But here is the thing – while there is no formulaic answer to the question as to what is the right age to buy a term insurance scheme but the earlier you buy it the lesser premium you will have to pay. 

When you are in your late 20s or early 30s you will be able to find a plethora of suitable insurance policies that provide adequate coverage at a lesser premium. This is because with increase in age, health complications tend to aggravate and so do the chances of death and hence insurers increase premium rates accordingly. Simply put, you should buy a term insurance plan as soon as you start earning. If you buy it at an early age, you will also be spared of having to burn a hole in your pocket and you can be assured of your family members being covered in case something happens to you. 

Lower chances of rejection

Postponing buying a term insurance policy can cause troubles for you in the long run. This is because insurers take pre-existing illnesses into account when providing insurance coverage. Consequently, buying insurance in your late 20s and early 30s reduces your chances of rejection because compared to older beneficiaries your chances of having pre-existing medical conditions would be significantly lower and you would not have to pay a higher premium either. However, if you postpone getting term insurance for a couple of years, the chances of being denied insurance cover or premium increasing exponentially goes up owing to greater risks of medical complication with age. 

Tax benefits

“I love paying taxes,” said no one ever but thankfully there are a myriad ways in which you can bring down your tax liabilities and buying a term insurance plan is one of those. Section 80C of the Income Tax Act allows taxpayers to claim deduction of upto Rs 1.5 lakh for various investments and purchases and the premium paid for a term insurance policy falls under that purview. You can also claim deductions of upto Rs 25,000 on premiums under Section 80D if your term insurance plan provides health coverage benefits or has critical illness riders. Section 10(10D) allows the nominee to claim tax benefit while claiming the sum assured in the event of the death of the policyholder and no taxes will be levied on the amount either.

Ensuring coverage beyond employee insurance

If you are an early career professional in the 25+ age bracket, you may have felt that you need not buy a term insurance policy because your employer may already be providing one. However, there is no certainty that your future employers will provide employee term insurance policy should you switch jobs and even if they do, it may not provide enough coverage. While an employee term insurance policy can have numerous advantages, it is better to also purchase a separate standalone policy so that your insurance coverage is not compromised at any juncture irrespective of your employment status. 

When choosing a life insurance policy, it is better to look for those with riders as they can enhance the scope of your insurance plan, thereby ensuring a higher level of protection.  With HDFC Life Click 2 Protect Life, you can customize your term plan by choosing one of the three options and you can also select riders for accidental disability, critical illness. What’s more , there are additional sums assured on accidental death and a waiver of premium on diagnosis of critical illness can also be availed. Also, under the Income Plus Option, you will receive a return of 100% of the Total Premiums paid as Lump Sum, upon survival till maturity. With a 98.01% Claim Settlement Ratio, you can be assured that your future is in the right hands.