An average Indian in his 30s achieves financial stability, owns a decent car and most of the times has already invested in a home. Marriage looks around the corner and so do kids. Everything looks in perfect state, but unexpected events can come calling anytime. Therefore, if you are investing already in PPF, Mutual Funds, SIPs and other investment instruments, do not forget to get a term insurance too.
The biggest differentiator is that a Term Insurance covers you for an unfortunate loss of life, giving you 20x cover for your current income at just about 2% premium. What else, this money doesn't fade away like your car insurance or health insurance, if you don't make a claim. A good financial corpus piles up with time thereby keeping up with returns on other investment instruments.
Why You Must Buy a Term Insurance Plan in your 30s
The simple reason is compound interest plus low premium when you are healthy and the risk is quantifiably low. The term insurance premium for a man/woman in his 30s is 3x lower than the premium for an individual of 40+, given the same Insurance cover.
Corporate Life Cover Vs Personal Term Insurance Plan
It looks good when you employer or company gives you a life cover, however that shouldn't refrain you from getting a personal term insurance plan. The problem comes with portability. The insurance covers whether life or health, provided by employers mostly end as soon as your job ends with the company. Therefore, you must not see Term Insurance as just a Risk Cover, rather treat it like a Risk Cover + an Investment Strategy
And the Good Old Tax Savings with Section 80C
You can get deductions under Section 80C for your Term Insurance premium. Money saved is money earned!
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