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The Perfect Life Insurance Plan Under 30
25-August-2021 |
Life under 30 years of age is a fantasy. We have the freedom to study, start earning and explore a lot of things. We spend money in different ways to experience the most out of our younger age. However, most of us don’t think about life insurance at that age. We have to bear in mind that life insurance is a long-term plan for addressing financial crises under unexpected conditions. It is a must to manage your family with financial security at different stages in life.
Why is Life Insurance required under 30?
There are certain inherent aspects associated with life under 30 that deem necessary for life insurance. Here are a few important ones:
When you are under the age of 30, you might be the only earning member in the family. Your parents who were earning for your education might have retired by then and become your financial dependents.
At 30, you might have got married and are expecting children. Your financial commitments and responsibilities keep increasing. In the event of your unexpected death, the entire family will start suffering.
Under the age of 30, you can also have debts like an education loan that requires repayment. You might start a car loan or a home loan once you get married. In the event of an unexpected death, your parents or your life partner will be burdened with the repayment.
As soon as you start earning, it becomes imperative that you seek long term plans for your future. It can range from higher studies to buying a new house or a new car. You have to start planning for it, along with securing family commitments.
What should your life insurance payout cover?
Having seen some of the important requirements, we will have to choose a plan that will suffice the needs in the best possible manner. Here are a few features that you need to expect from a perfect life insurance plan:
Life cover securing your family’s financial commitments such as utility bills, children education, marriage, etc.
Lump-sum amount to clear off debts
Saving and investment benefits for long term planning
Which is the Perfect Life Insurance Plan?
Considering the requirements and the features, it is best advised that people under the age of 30 can go for a Guaranteed Return Insurance Plan (UIN- 110N152V08). It will combine the benefits of term insurance and provide additional guaranteed1 returns. Let us understand why this plan is the best.
Guaranteed1 return insurance plans offer the following benefits:
Provide dual benefits of life cover and assured maturity benefits.
On termination of the policy, sum assured or lump sum amount is provided to the policyholder if he survives the policy term or to the dependents in case of the policyholder’s sudden death. Along with the sum assured, additional benefits are provided. If you opt for a long-term guaranteed1 insurance plan, the sum assured increases to a great extent.
Extend the sum assured along with riders#
The best insurance plan will provide a comprehensive package along with riders. The terminal illness rider and the critical illness rider ensure the sum assured payable is provided on the diagnosis of such an illness. The list of illness covered is provided while purchasing the rider. The accidental death rider pays the sum assured to the nominee in case of the insured person dies due to an accident. In the case of a permanent disability rider, the sum assured in the form of lumpsum income or combination of both is payable if the insured meets with an accident, which has caused a permanent disability. Return of premium option can also be chosen with the riders wherein the total premium paid is returned when the policy matures, and the policyholder has survived the term. Waiver of Premium rides waives off all the future premiums in case of illness or disability of the policyholder
Guaranteed1 benefits and additions such as bonuses on maturity
There will be a guaranteed1 addition based on a rate for each year completed during the policy term. It will be paid on maturity of the policy or as a death benefit, whichever comes earlier. These benefits are accrued, provided the premiums are paid regularly.
The guaranteed1 returns can have different pay out options.
As a lump sum amount on maturity
As a guaranteed1 annual income for a fixed number of years post maturity
Guaranteed1 annual income can be received as regular monthly income
The Tata AIA policy for guaranteed1 returns – Tata AIA Life Insurance Guaranteed Returns Insurance Plan (UIN: 110N152V07) provides assured returns on maturity, along with a host of bonuses and accrual additions. The plan can be customized based on your requirements, considering the terms and conditions of the policy.
Option to choose the premium amount and the policy term
Based on your current budget and a long-term financial strategic plan, you can always decide on the life insurance premium amount and tenure. When you plan for such a policy at a younger age, the premium rate is comparatively less. The reason is, there are no major illnesses or pre-existing ailments at that age. The risk factor is comparatively low, which majorly accounts for the premium rate.
Conclusion
When you feel there are no major commitments at a younger age, you tend to spend your money on avoidable expenses. It is important to live a happy and content life. Life insurance and a guaranteed1 return plan will have all the required commitments fulfilled in a balanced manner. When availed at an early age, you get a higher sum assured at lower premium due to a long–term compounding effect and accrual additions. It will help you bear all the major financial obligations such as children education, marriage etc.
If you feel you are responsible for your family’s financial security, then an insurance plan is a must! And an insurance plan with guaranteed1 returns will be ideal for a person under 30 years of age undoubtedly!
L&C/Advt/2021/Oct/1757
