If you divide your life into decades, your 20s and 30s are all about hustle, growth and working towards stability. This is the phase when you start and grow into your career, get married, build a family, buy a house, start saving for your children’s future - overall, you build a life.

By the time you reach 40, you are fairly settled in your life with a stable income flow, your children are studying, you are building a corpus for their higher education and marriage, you may have a home loan as well as a car loan, you have established a good standard of living and lifestyle for your family, you are taking care of your elderly parents and you might be saving up for your retirement.

But (when is life without buts) your family is still dependent on you, and that creates the fear of uncertainties. Will your family be able to sustain the lifestyle in your absence? What about your children’s higher education and marriage? Will the family be burdened by the debt repayment?

The perfect way to quell all these fears is to get yourself adequately insured with a life insurance plan. There are various types of life covers available; however, buying a term life insurance plan allows you to get extensive coverage at affordable premium prices.

While you can buy term insurance at any age - even in your 40s - it is advisable to get insured before you start the 5th decade of your life. In this article, we will list the reasons why buying term insurance before the 40s is a good idea.

Top Reasons to Buy a Term Plan Before You Turn 40

• Secure your family’s future: As we discussed above, your 20s and 30s are about building a life - career, spouse, children, house, etc. When you have dependents, you have to ensure that they are well provided for even in your absence. A term life insurance plan in India offers just that.
  
  

  With a term life insurance plan, you can get wide coverage and ensure your family’s financial future is secured even when you are not around. The extensive term plan coverage allows your family to maintain the standard of living you have ensured for them and take care of all major future financial obligations.
  
  

• Early start means Lower premiums and higher coverage: Your term life insurance premium is directly proportional to your age and health. The younger you are the lower will be your premium outflow. This is due to the risk of coverage.
  
  

  At a younger age, you are less likely to develop serious health conditions. You are healthy and thus are a lower risk for insurers. So, they offer lower premiums. Also, you can buy long term insurance plans with a tenure of up to 40 years.
  
  

  As you grow older, the premiums go up due to the higher probability of you developing serious health conditions.
  
  

  Therefore, it is advisable to buy term insurance in your 20s (preferably) and 30s (at the most) to enjoy lower premiums and higher coverage. You can even buy a term plan for age 40 but the premiums will be considerably higher.
  
  

• Ensure repayment of the financial liabilities: We discussed that your 20s and 30s are when you may take out a loan for a house and a car. You may also have some credit card outstanding payments or other financial liabilities. Owing to your stable income, you are able to ensure timely and regular repayments. However, in case of any eventualities, your family may be burdened by the repayment, along with the loss of a primary earner. This can put undue stress on the already limited financial resources.
  
  

  When you buy a term insurance plan for 40 years of age, make sure to account for the financial liabilities while deciding the sum assured. This will help your family pay off any outstanding dues and still have a secure financial future.
  
  

  You can either buy a single term insurance plan in India to account for all financial requirements as well as loans or you can buy a separate term plan just to cover the loans with the policy tenure matching the loan tenure.
  
  

• Avail better coverage than employer’s insurance plans: Term life insurance plans offered by employers may not offer extensive coverage. Secondly, these plans are not portable.
  
  

  Your 20s and 30s are a time when you may switch employers for better prospects or take a sabbatical for upskilling. In these cases, the employer plan coverage terminates and you are left uninsured.
  
  

  Therefore, buying your own term insurance plan in India ensures uninterrupted protection through all stages and circumstances of your life.
  
  

• Enjoy extensive tax* benefits: Term plans offer attractive tax* benefits on not only the premiums paid but also the sum assured paid out to the family.
  
  

  Under Section 80C of the Income Tax Act of 1961, the premiums you pay towards your term life insurance plan are tax-deductible* up to ₹1,50,000.
  
  

  Additionally, the sum assured paid out to your family is tax-exempt* under Section 10 (10D) of the Act. Make sure to check the prevailing tax*rules when buying the plan.
  
  

• Understand and purchase the plan easily: Term insurance plans in India are one of the purest, simplest and easiest to understand life insurance plans. You pay the premiums and the coverage starts. In case of any eventualities, the family gets the pre-decided sum assured.
  
  

  If you survive the policy term, a regular term plan does not offer any maturity benefits. If you opt for a term plan with a return of premium¹, you get the sum of all premiums paid as a survival benefit upon maturity.
  
  

  Thus, term insurance plans are straightforward and easy to understand. Also, with all leading insurance companies offering online term plans, it is quicker and seamless to buy a term insurance plan in India now.
  
  

  You can buy Tata AIA term plans from the convenience of your home, with just a few clicks.
  
  

  • Just visit our Term Insurance Page. Check out the various plans on offer and choose the coverage that you require.
  • Alternatively, you can visit the Buy Term Insurance Page.
  • Provide a few details and personal information.
  • Pay the premium.
  • You can use our online term insurance calculator to determine the coverage and the premium you need to pay for it.
    
    

  You can get in touch with our insurance experts and get their assistance if you are stuck at any stage of your term insurance purchase.
  
  

Conclusion

Term insurance offers good coverage and is more affordable than most other types of life insurance plans. Also, you can enjoy additional savings on premiums if you buy a term life insurance plan early.

The two decades of your life leading to your 40s are crucial when it comes to your career, family and building the life of your dreams. To ensure you focus on that and do not worry about your family’s financial well-being, get a term insurance plan in India today.

Check out Tata AIA term plans for whole life coverage, return of premium¹ benefits, affordable premiums, choice of attractive riders^#, life stage benefit and much more.

Get in touch with us today for more information.

L&C/Advt/2022/Jun/1259