Who is the best candidate to buy term insurance? Everybody under the age of 65 years is, but if you’re young and disease-free, you’re certainly the ideal choice.
It is often crudely referred to as ‘the arrogance of youth’ but in fact, it is the heady feeling of invincibility that one experiences in their 20s, that makes them feel that the world is their oyster. A person in their 20s is full of good health and cheer, has their own source of income, is full of a spirit of adventure – and just the person that insurance companies are looking for.
If you are in your 20s, you might feel that buying an insurance policy is something that you can defer for a later time. You might feel that no eventuality, however dire, can be met adequately with an insurance plan. You might also believe that older people need insurance, and not you. But this is where you would be wrong – it is because of your relative youth that you should be buying online term insurance.
Are you puzzled by this proposal? Allow us to explain why you are the best choice for buying term insurance in your 20s:
#1 You have dependents, and they rely on you.There is scarcely a person in the world who exists wholly without any relatives or connections. Your income runs your household, or at the very least, pays your personal expenses. So, if you and your income were suddenly lost in the future, it would definitely affect your family in some manner. The effect is magnified if you are the family’s sole breadwinner – in this case, you must buy term insurance so that your loved ones are not left in financial turmoil in your absence.
#2 You are just starting out in your career. Every person has a relatively low income at the start of their career, and hardly any savings. The thought of creating a savings fund may not even have crossed your mind at this stage! Or even if it has, you may find it difficult to allocate savings apart adjusting your income against necessary expenses. Suppose the unthinkable happens, and you are suddenly absent in the future. Your loved ones will not have the cushion of your income or even a savings fund to fall back on – but an online term insurance plan can save them from financial instability at this juncture.
#3 You don’t want to buy an expensive life policy.You may have realised that buying a life insurance plan is actually quite beneficial to you. But after browsing through a few plans recommended by friends and family, you realise that the premiums are too high. At this stage of life, you are not interested in allocating too much money towards expensive life policies. This is where online term insurance comes in – the premiums are extremely affordable (not more than Rs 17 per day for the best term plans in India) and as a 20-something with a good health profile, insurance providers are happy to extend lower premiums for you. So you end up buying an affordable plan with a high sum assured – just what you wanted!
#4 Your employee insurance is insufficient. Most Indian companies today offer employee insurance, though the plan you get may be part of a group insurance scheme. Examine it closely – is the sum assured sufficient to cover future expenses in case of a loss of income due to partial/complete disability or demise? The plan will most likely be a bare-bones one with a low premium and low sum assured. You can certainly use the plan when needed, but it is always better to pad it up with a good online term insurance plan of your own.
#5 You don’t want to leave any debts behind.Apart from grappling with the emotional trauma of losing a family member, a bigger worry is dealing with unpaid debts that the deceased has left behind. It can become traumatic to deal with creditors who come calling for their money – your loved ones will have no option but to sell some assets to repay the debt. But if you buy online term insurance, then the sum assured corpus can be used to repay any liabilities. This saves your family from harassment later on.
#6 You can easily buy the term plan online. The best part is, insurance providers are happy to allow 20-somethings to buy online term insurance. You are savvier with Internet technology than people older than you, and you are adept at transferring payments, and you would prefer to buy online term insurance. Since you buy the policy directly from the insurance provider, the latter does not need to pay a broker any commission – this saving is passed on to you. The operational costs of processing an online policy are also much lower, which makes the premiums lower still.