Why Should you Buy a Term Insurance Plan Early?

Written by : Knowledge Centre Team

2025-12-20

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5 Reasons to buy a term plan early in life

When you are in your 20s, getting a term plan is the last thing you have on your mind. The popular belief in the 20s is that you don't need a term plan because you are young and healthy. Also, there is a misconception due to less of responsibilities and dependents that a term plan is not needed. Well, contrary to popular belief, you should buy a term plan as early as possible.

You may not have responsibilities today, but we all have them in the future. An important aspect of future planning is to ensure your loved ones are always protected. While you can do this by buying a term plan, it promises to pay the nominee a sum assured if the policyholder unfortunately passes away during the term of the policy. Let’s understand and grasp why a term plan is a necessary financial resource to invest in.

Key Takeaways

Future responsibilities are easier to handle when insurance is in place early.
Buying early locks your premium at a lower rate for the entire policy duration.
Saral Jeevan Bima is ideal for young adults starting their careers.
Long policy tenure means extended protection till retirement or beyond.
Add-ons can enhance your cover against accidents or critical illness.

What are the 3 Top Reasons to Buy a Term Plan Early?

You should buy a term insurance plan as early as possible in your life for the following three reasons:

Premium Amount is Lower

When you buy a term plan at an early age, the premium you need to pay is low. The premium amount increases as you grow older. Insurance companies consider your age and health condition when deciding the premium amount. Naturally, you are healthy in your mid-20s, and hence the premium amount is lower.

You Pay Less in Total as the Premium Amount is Locked

The premium amount is locked in for a lifetime, so if you buy a term plan early, you save a big amount of money over time. For example, consider the two cases below:

Case 1: You buy a term plan at 25 with a coverage of ₹1 crore, valid till 75 years. The premium amount will be ₹5000. Over 50 years, you pay ₹2.5 lacs as a premium.

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Case 2: You buy a term plan at 35 with a coverage of ₹1 crore, valid till 75 years. The premium amount will be ₹12,000. Over 50 years, you pay ₹6 lacs as a premium.

You Can Increase Your Life Cover at a Lower Cost

Your family, income, lifestyle, and financial responsibilities will grow as you age, and so should your term insurance cover as well. If you buy term plans like iSelect Smart360 Term Plan by Canara HSBC Life Insurance, it lets you increase your life cover within the existing policy. Moreover, you can secure the additional cover at a lower premium cost.

The application process is also faster, as you may not have to go through the complete application and documents again.

Is Saral Jeevan Bima an Affordable Term Plan That You Can Buy?

Getting a perfect insurance plan for yourself and your family will require a considerable amount of time and energy. While you look for a life insurance plan that covers all your needs, it is important to get a simple term plan. It will ensure your family is protected. Saral Jeevan Bima is the simplest and most affordable type of Term Insurance plan you can buy when you are just starting off your career.

Features of Saral Jeevan Bima

Listed below are 9 attractive features of Saral Jeevan Bima that make it a “must-buy” if you are in your early 20s and you are looking for an affordable term plan:

You get insurance cover at an affordable price.
The age of entry is between 18 and 65 years.
The age of maturity is between 23 and 70 years.
The policy is very simple to under, and the process to purchase is even simpler.
You get multiple premium payment term options. You have an option to make a single premium or pay a premium for 5/10 years, or pay throughout the policy term.
If one opts for a single payment option, in the event of an unexpected demise, the nominee will receive 125% of the single premium or the absolute amount assured to be paid on death (whichever is higher).
If one opts for a regular or limited premium payment option, in times of misfortune, the nominee will receive 10 times one's annualised premium or 105% of the total premium paid or the absolute amount assured (the higher of the three).
Sum assured is between ₹5 lakh and ₹25 lakh, offered in multiples of ₹50,000.
You also get tax benefits on the premium amount you pay.

How to Buy Saral Jeevan Beema?

You can buy Saral Jeevan Bima Term plan by Canara HSBC Life Insurance by following the below given five quick steps:

Decide on the sum assured you want.
Choose your policy term, premium payment frequency, and premium payment term.
Provide basic information like your age, education, health status, alcohol/tobacco consumption, etc.
Based on the information you have shared, the premium is calculated.
Read the final terms and conditions of the policy. If you agree, you can start paying your premium.

What are the Other Insurance Plans That You May Consider?

A term plan prepares you and your family for challenging times. The other type of insurance you should look to secure the future of your family is health insurance. Health uncertainties and risks are part of life, and you should be prepared for them. Health insurance provides you with financial backup at the time of a medical emergency.

How to Buy the Right Term Life Insurance?

Once you have secured the future of loved ones by buying the Sara Jeevan Bima plan, you can explore a life insurance plan with more benefits. Here’s what you must look for in your life insurance:

Right Life Cover Amount

You have a certain type of lifestyle, and you want your family to continue the same lifestyle even in your absence. For that, you need to look for an insurance plan that will cover all your future expenses. iSelect Smart360 Term Plan by Canara HSBC Life Insurance gives you the option to choose the cover amount as per your needs.

Right Policy Tenure: You should opt for long-term policy tenure. Ideally, you should choose a policy that offers you a tenure of your retirement age minus your current age. However, it’s better to keep an extended policy given the increasing age of loan maturity and employment.
Add-ons Offers: Check for the add-ons the life insurance plan is offering, such as base cover, accidental death benefit rider, cover against critical illness, etc. Under the iSelect Smart360 Term Plan by Canara HSBC Life Insurance, you are insured for both deaths and terminal illnesses.
Claim Settlement Ratio: This refers to the number of claims the company has settled per 100 cases. Canara HSBC Life Insurance has a claim settlement ratio of 99.43%^ for individual claims as per the latest estimates.
Thus, you can keep your family safe with Saral Jeevan Bima while you search for an ideal term cover for them.

Conclusion

Buying a term plan early is one of the smartest financial decisions you can make for your family. It costs less when you are young, locks in low premiums, and grows with your needs. Whether or not you have responsibilities today, they will eventually come, and a term plan ensures you are prepared.

Plans like Saral Jeevan Bima and iSelect Smart360 Term Plan by Canara HSBC Life Insurance are simple, affordable, and built to protect your future. With custom options and strong claim settlement support, these plans are perfect to start your journey of financial responsibility.

Choosing a trusted insurance provider ensures your loved ones stay protected no matter what. Do not wait for life’s surprises to arrive. Instead, secure your tomorrow with a reliable term insurance plan from us today.

Disclaimer - This article is issued in the general public interest and meant for general information purposes only. The views expressed in this blog are solely those of the writer and do not necessarily reflect the official policy or position of Canara HSBC Life Insurance Company Limited or any affiliated entity. We make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the blog or the information, products, services, or related graphics contained in the blog for any purpose. Any reliance you place on such information is therefore strictly at your own risk. You should consult with a qualified professional regarding your specific circumstances before taking any action based on the content provided herein.