The moment one is 30 one feels that he or she must now be more responsible. Money matters are given much importance.
One has a superb career to look forward to and naturally the urge to earn well and lead a decent life with good standard of living is what the person at 30 aspires for. In case one earns well then one experiences financial stability.
One also is married now and has family responsibilities to take care of. Children depend upon the man of the house and sometimes both partners have to earn in order to meet up to the expenses. At times, a person plans to get married at the 30s as these days many are going for late marriage. Whatever said done there are purchases to be made and one also wants to travel as well.
The desire to ensure there is no financial crisis is there, and naturally, financial planning is a must in this context.
The need to buy insurance:
It is indeed being smart to be able to purchase term insurance to ensure the financial well-being of one’s family the day one is not around anymore.
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Why so?
1. Most-recommended Financial Product
One decides upon approaching financial advisors in order for them to help out in investing in mutual funds, SIPs, life insurance policies and also pension plans. The idea is to keep one’s retirement years worry-free and also risk-free.
Most financial planners will indeed recommend one to buy a term insurance policy.
• Mutual funds, as well as pensions plans, can help one save money for one’s retirement days. One can start investing early because one’s wants to have a larger corpus at one’s disposal.
• But term insurance does help one solve the risk of death. One can focus upon an unpaid loan; one has to send the kids to college, financial security for one’s parents or one’s spouse. Even if one was not there anymore at least his or her family is secure. Even if was not around, one’s family will have financial support.
2. Starting Early Means Lower Premiums
Before one enters the thirties, one is rather healthy. The lifestyle diseases such as diabetes have not started taking a toll on oneself. Substances such as alcohol, smoke, and pesticides in one’s food have not crossed the unhealthy levels.
This implies:
• The younger one is it is better to buy term insurance; the lower will be one’s term insurance premium. While applying for the term insurance, one has to undergo a medical check-up. An insurance company generally hesitates for health cover –up if one is around 40 as one can suffer from diseases.
If one is young and healthy the premium is less.
3. Lock Your Premiums Now
An insurance policy does mean that one has to pay up hiked premiums. Every year the premium goes up.
On the other hand if one buys a term insurance much earlier in life implies that one will pay a lower premium for the rest of policy term.
It is not being sensible to wait till 40 to buy term insurance plan.
4. Tax-Saving
One is always on the lookout for investments and a number of options to invest and thus save on income tax.
The premium that is paid toward buying a term insurance can indeed be part of investments under 80C deductions.
Money saved in tax can be useful for other purposes.
5. Term plan by your employer is not one’s best plan
It is also good to work with an employer who thinks of his or her family. Yet, it is not advisable to rely upon the term plan investment suggested by the employer. It may not be the best plan.
At 35 one is at the peak of one’s career and is in search for better job prospects and career growth.
It is better to watch out for the term plan offered by one’s employer as it may not be portable and can end soon.
Depend upon one’s own best judgment when it comes to financial matters. It is better to think for oneself. One must buy a term insurance when they happen to be more affordable and thus risk cover can be had for one’s family.
Conclusion
Turning 30 is a major indeed a major event in one’s life as there is an attitudinal change on the whole towards life in general. It is a new phase in one’s life. One has to cope up with more responsibilities, particularly family and financial. Life does throw a lot of surprises and one must be prepared for it. One has to make sure that his or family is well protected financial in case the person is no more. Naturally, one seeks out for an insurance plan.
Buying a term insurance cover is no doubt the right thing to do and also the right thing as well as the most responsible thing.