When it comes to life insurance, the earlier you start, the better are your benefits. Check out the best term insurance plans for different age groups in India, updated for 2019.
What is Term Insurance?
Term insurance is the purest form of life insurance. It’s a contract between you (the policyholder) and the insurer (the insurance company). You pay premiums for your life insurance plan. In return, the insurer provides your family with a pre-determined sum assured, if something unexpected were to pass away before the end of the policy term.
The sum assured is a boon to your family, as they can take care of their immediate finances when you are not around. On the other hand, if you survive the policy period, then you don’t get any benefits.
Let’s take a look at cheap term insurance plans for different age groups.
In your 20s
This is the age when you are just starting your career. You don’t have too many responsibilities like debts to repay or dependent parents. One of the biggest advantages of taking a term plan in your 20s is that the premium is affordable. You can purchase a term plan with a life cover of Rs. 50 lakhs for premiums as low as Rs. 3500 per year.
In your 30s
As you approach 30s, you are likely to have more significant financial responsibilities – car loans, home loans, children’s education, and other commitments. You must decide whether you would like to get a term plan that offers maturity benefits as monthly payouts or as a lump sum. Monthly payouts help to meet your family’s regular day-to-day expenses, while lump-sum amounts help to pay off existing debts. It all depends on what suits your family the best.
In your 40s
At this stage, you may be thinking of your retirement. You need a bigger financial cover to help your family if something were to happen to you.
A healthy, non-smoking 40-year-old male can purchase a term plan that offers a cover of Rs.50 lakhs for annual premiums around Rs. 7500+. The same plan is likely to cost you double in your 50s.
In your 50s and beyond
Even though term plans are likely to cost you more now, it’s highly recommended that you go ahead and purchase one. Some insurers even offer exclusive term plans for seniors.
How to choose the cheapest and best term insurance plans?
Use an online term insurance calculator. Specify your details – age, life cover required, medical history, policy term, and premium to get a list of policies that meet your specific requirements. Compare different plans and then choose the right term plan that offers you the most coverage for the best premiums.