Youngsters in their twenties are either in college or just starting their careers. You are young hale and hearty. Saving for the future, retirement planning and financial goals still is not a priority for many. But you either postpone the thought of getting insurance or do not think of it altogether. But it is always advisable to start early. There can be no better period than the 20s to opt for an online term policy or approach an insurance agent. Read to know why-
No worries about high premiums
Term insurance plans offer higher coverage for a lower premium. As most of the youngsters do not have any significant financial goals or responsibilities, it is not difficult to afford the premiums of Term plans. Also, the premiums for an online term policy are comparatively lesser than an offline insurance plan
The term insurance tax benefit is another reason why youngsters should consider investing in a term plan. Premiums paid under the policy shall be eligible for deduction under Section 80C of the Income Tax Act 1961. The payouts of the term insurance plans are exempt from taxation under section 10 (10D) of Indian Income Tax Act 1961.
Please note that Income Tax laws are subject to change from time to time. Please seek advice from your personal tax consultant on the tax benefits available in a Life Insurance policy.
A Term plan is a productive investment at any age. The versatility and affordability of the Term insurance plan further make it a perfect fit for the millennials. Hence, experts advise buying a Term insurance plan in your early years .
Tax benefits are as per Income Tax Laws & are subject to change from time to time. Please consult your Tax advisor for details. You may visit our website for further details here.