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Term insurance is one such investment that can assure you better returns against affordable premium amounts. Investing in a term plan can act as financial security for your families and help them become empowered in your absence.
Scroll down to learn more about the advantages of buying term insurance for millennials.
Why do millennials need a term insurance policy?
Millennials can benefit from term insurance policies in many ways. Some of these have been listed below:
- Benefits of early investment
Starting your term insurance investment journey early in life has several advantages. As millennials, you are still in your 30s, which means you are less prone to health issues or critical diseases. Investing in a term insurance policy now is a wise financial move for a millennial.
- Income security
Millennials are currently established in their careers, which also means they can be earning members of their families. However, in case of unfortunate events like the policyholder’s untimely demise, term insurance ensures their family does not suffer from a loss of income. A large sum is paid to the beneficiaries as the death benefit to fulfil their financial commitments.
- Lower premiums
One of the biggest advantages of purchasing a term insurance plan for millennials is its lower premium. Since premium amounts are determined based on various factors like annual income, age, health status, etc, these factors impact millennials positively, resulting in lower premium amounts for their term plans.
- Longer life cover
As a millennial, you can purchase a term insurance plan at affordable rates, which also enables you to settle for a larger life coverage. Also, going for a longer life coverage ensures you will be financially covered for the maximum number of years of your life.
- Financial protection
Being financially protected is one of the primary benefits of having a term insurance plan. Not only does it ensure your dependents stay financially protected in case of your untimely demise, but it also helps your family maintain their regular lifestyle.
- Enhanced coverage
Term insurance plans also come with options to include multiple riders or add-ons to your policy to enhance the coverage further. These include accidental death coverage, coverage for critical illness, terminal illness, permanent disability and more. Including such additional benefits in your term plan ensures you get extra layers of financial protection for your future.
- Convenient payment options
Term insurance plans also come with different types of premium payment options to make it convenient for you to make payments as per your preference or financial stability. These include single or one-time payment and limited and regular pay options. This means you are allowed to pay annually, monthly, half-yearly, or quarterly.
- Easy operations
As compared to the previous generation, millennials are more adapted to digitalisation and are quite tech-savvy. Most reputed term insurance companies work fully digital, making it even easier for millennials to purchase and claim term plans. Thus, you can visit the insurer’s websites online, research the background of the companies, compare plans, and make online purchases easily.
- Tax benefits
Every policyholder of term insurance plans is eligible to receive the tax benefits. Under Section 80C of the Income Tax Act, you can claim a tax deduction of up to Rs 1.5 lakh annually. Besides, the policy’s death benefit will also be exempt from tax under Section 10(10D) of the Income Tax Act.
- Peace of mind
People are now more aware of their mental health along with their physical health. Considering how stressful life can become with multiple responsibilities and financial burdens, having a term insurance plan can be the reason for your peace of mind. Being able to secure your family financially provides you with a sense of contentment to lead a peaceful life.
