Life Insurance

Get the Early Bird Edge with Term Plans

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We have all heard the saying “the early bird catches the worm” and you get plenty of “early bird” schemes in shopping offers. It is effectively getting more thanks to an early start. Many people are unaware that the “early bird advantage” also holds true when it comes to protecting one’s family with life insurance. Nowhere is it more evident than when one buys a term life insurance plan or a term plan.

A term plan provides financial protection to the family in the absence of the insured person. This is the purest form of financial protection for one’s family. If you want to know more about the early bird advantage from term insurance and term plans, read on.

Low premium advantage

When you buy a term plan early in life, your premiums are low. This is because the health and other risks that typically threaten life are lower when you are young which helps the life insurance company to charge you lower premiums. At a time, when your pay is typically low, the higher life insurance coverage provided by term plans at low premiums is of great help.

Remember, the premium for a term plan is the lowest possible. You can find out about the premium that you need to pay by yourself from life insurance calculators as well as term plan premium calculators or term insurance calculators. It is worthwhile pointing out here that the premium for online term insurance is lower than offline ones since the life insurance company is passing on its savings in distribution costs.

Lifelong low premium edge

Since life insurance premiums remain the same during the term of the term insurance plan, you continue to pay the low premiums due to an early start in a term plan. This leaves you with enough disposable savings for investments and spare money for productive loans like home and education loans that typically enhance your future income.

Secures your financial progress

No matter how good your investments are, without the security of life insurance coverage from term plans, your family remains vulnerable. During emergencies, without adequate life insurance coverage, your family will need to dip into these investments. At some point, there will be the danger of running out of savings, much of which was meant for important financial goals such as your child’s higher education. The financial pressure can become even more if you have substantial outstanding loans such as home loans.

With a term plan, there is not only adequate financial security with your family early on, but you also have enough disposable savings to invest in high growth investments like equity-oriented unit linked insurance plans (ULIPs). This helps you to grow your money without making any compromises on the financial security of your family.

Clearly, there is a lot to be gained by buying term plans to benefit from the high life insurance coverage at affordable premiums. This advantage is driven home further when you buy them when young. It is safe to conclude that the “early bird” advantage works even in the world of personal finance.

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