Youngsters today are very organised and exercise a lot of caution when it comes to their lives, health and money. This is a positive trend, as being systematic and alert can have several benefits in the long run. Getting term insurance is a direct result of this. The term insurance plans help you to plan and lead your life the way you want, as they bring forth many advantages. Take a look at this article to know why it is a great idea for every millennial to invest in a term insurance plan.

What is term insurance? 

Term insurance is a form of life insurance where you stay insured for a set period of time. This is a form of life insurance where you get a pure life cover. In other words, there is no return component – if you die within the policy tenure, your nominee gets a payout, as promised by the policy. However, if you outlive the policy period, there is no return component to be earned. It is a plain vanilla life cover and hence, it is quite simple and inexpensive.

Reasons why millennials should get term insurance 

• Life cover

The biggest and most obvious reason for getting the term insurance plans is the life cover. As a millennial, you may have a young family to support. You may also have parents who depend on you. It is possible for you to have loans and mortgages. To safeguard all these financial liabilities, you need term insurance. If anything unexpected were to happen to you, your family could always use the funds received from term insurance to cover their financial needs. A term insurance plan is therefore quite an essential requirement. You can provide for your family even after your death, and this can be done simply and conveniently with the help of term insurance. 

• Age on your side

Millennials are currently in the range of 28 and 43 years old. This is the perfect time to get term insurance. Your 20s and 30s are a great time to invest in term insurance as you have age on your side. You are young and healthy. This helps you to get term insurance on relaxed terms. Also, at this stage of your life, you have several financial duties like paying off a home loan, paying your children’s school fees, caring for your parents and so on. You can only spare a small amount towards your life insurance needs so term insurance proves to be the perfect match. Use a term insurance calculator to understand the sum assured and premium as per your needs and use it to plan your coverage.

• Easy financial planning

Apart from being pocket-friendly, the term insurance plans help you in other aspects of financial planning. You can buy a term plan and take care of several other overheads in one go. For example, you can buy a critical illness rider with your term plan and have an important aspect of your health covered, thereby reducing the need to buy a standalone critical illness insurance plan. You also get to save tax, which further helps you to save money. Additionally, your term insurance plan allows you to adjust your coverage as per your requirements, so you only get what you need, which makes it a very effective coverage. 

• Tax savings 

As mentioned above, a term life insurance plan is a very handy tax-saving tool. You can save up to INR 1.5 lakhs each year for the term insurance premium you pay. This provision is possible because of Section 80C of the Indian Income Tax Act. Hence, getting term insurance provides you with the additional service of tax saving, which proves to be highly beneficial

• Inexpensive 

Last but not least, term insurance is very inexpensive. This is one of the main reasons why every millennial should consider getting term insurance. You can get a life cover worth crores by just paying a few thousand rupees a year. This is very handy for young people who may not be able to afford the other forms of life insurance, which are more expensive. Use a term insurance calculator to understand the cost of the plan before you buy it. You can also customise it as per your needs, which makes it all the more favourable for you. 

The bottom line

It is a good practice for everyone to have term insurance, but a millennial getting it is a great idea. As you can see from the points mentioned above, there are several benefits to doing so. Thankfully. There are some excellent plans available from the leading insurance providers in India. Make a list of your requirements and then go and start your search for the best plan at the best rate. Once that is done, you can live a relaxed and peaceful life.