Why should you buy a Term Plan when you are below 30?

The 20s and 30s are the most golden years of your life. These are the decades when you typically get your first salary cheque, when you find a life partner, get married and start a family, and when you take other major decisions like buying a home, or a car, or setting up a business. For a large majority, this is also the time when careers see an upward trajectory.

But, as you make the right career moves to grow your wealth, you must also take steps to secure the wealth that you already have. In fact, the financial decisions that you take during these golden decades are very important as they have the ability to secure your future. One of the best ways of doing this, according to financial experts, is by investing some part of your savings into a term insurance plan, which is one of the most traditional and yet most popular forms of insurance.

Buying a term plan before you turn 30 offers financial security for your growing family. Having a child is a life changing decision, which brings with it a need to create a safety net for your loved ones from a financial perspective in the unfortunate event that something happens to you. A term life insurance offers that financial security.

One of the main advantages of buying it in your 30s is the amount of premium you need to pay. Insurance premiums are built on life expectancy, which is much higher when you are in your 20s. Therefore, premiums are lower at this age. As you age, the premium keeps going up every year for the same amount of cover. So, the earlier you buy the term insurance, the cheaper the premiums will be.

With advancing age, you may also need to undergo a health check-up after the age of 45 years to get the insurance issued and the premium will be even higher if you have developed any health conditions like hypertension, or diabetes, by then.

Term insurance offers another major benefit in the Indian context when taken early on. It is seen as a tax-saving instrument which helps to minimise your tax liability during the years when your earning will only be increasing. The premium you pay towards your term insurance plan can be claimed as a deduction under Section 80 (C) for an amount of up to Rs 1.5 lakh a year. There are other deductions too which can be claimed under different sections.

Your 20s and 30s are also a time when you need financial assistance in the form of loans to fulfil life goals like pursuing a degree, or buying a home. In the event of an untimely demise, these loans can become an additional burden on your loved ones. But, term insurance can help cover the repayments thereby offering more financial stability to your family.

The decision to get a term plan is critical to the future, to protect against life’s uncertainties and ensure that your loved ones are provided for in your absence. A great option here is the HDFC Life Click 2 Protect Super, a non-linked, non-participating, Pure Risk Premium insurance plan, which provides comprehensive financial protection for your family.

HDFC Life Click 2 Protect Super is available in 3 pan options – Life, Life Plus and Life Goals and each of these offer flexibilities at every stage. So, in effect, you can design your own plan with the desired cover and benefits. These can include:

You can get back all the premiums till maturity on survival with the Return of Premium option
You can choose to alter your Death Benefit according to your financial needs or life goals under the Life Goal option
You can opt to increase Death Benefit up to 200 per cent under Life option
You can get an additional amount to be paid out in the event of accidental death during the policy term
Provides the option of Acceleration of Death benefit on diagnosis of specified terminal illnesses, till age 80 years
Offers the option to get a waiver of premium on diagnosis on critical illness or in the event of total and permanent disability
You can also opt to get Death Benefit in instalments
You can get additional cover for your spouse