How planning your term plan at a young age gives you financial endurance?

How planning your term plan at a young age gives you financial endurance?

When you start earning, you don’t think about future uncertainties and problems. Your main focus is always on the present expenditures. That is not wrong but for a secure future saving and investment are important. And to explain it better, we never thought about a pandemic will come and change our way of living.

Many people suffer from various problems. But some problems can be avoided if they start taking care of their finance by buying a term plan at the very start of their earning days. And yes, I understand not everyone can afford a term plan but if you do research you can find the most suitable plan for you.

Now there are many plans that not only traditional life insurance plans, they not only give you financial independence but helps you with emotional strength.

There are many varieties of insurance plans and proper knowledge about those plans is essential because that’s how you are going to select the best plan for yourself according to your annual income.

Many young earning people don’t understand what about of premium they should determine based on the multiple factors. A 25 25-year-old son can pay just 25-year-approximately  per year for a Rs 1 cr term plan with 35 years of the policy tenure same can be done by Rs 16, 423 annually for 35 years old and Rs 35,925 for a 45-year-old person. A premium cost would be double for 10 years and quadruple it 20 years

There are more benefits from term planning at a young age:-

  • Saving in income tax by using Section 80C dedication of the Income-tax Act.
  • Helps you in learning self-finance management.
  • Helps you in achieving your future goals.
  • And most importantly, protects you from situations like this we are facing currently.