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, you think since you don't have any responsibilities and dependents, a term plan is not needed. 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. You can do this by buying a term plan. Term insurance plan promises to pay the nominee a sum assured if the policyholder dies during the term of the policy.
3 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:
i. 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 old. 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.
ii. You pay less in total as the premium amount is locked
The premium amount is locked in a lifetime, so if you buy a term plan early, you save a big amount of money over time. For example, consider below two cases:
Case 1: You buy a term plan at 25 with a coverage of Rs 1 crore, valid till 75 years. The premium amount will be Rs 5000. Over 50 years, you pay Rs 2.5 lacs as a premium.
Case 2: You buy a term plan at 35 with a coverage of Rs 1 crore, valid till 75 years. The premium amount will be Rs 12,000. Over 50 years, you pay Rs 6 lacs as a premium.
iii. 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 Star which let you increase your life cover within the existing policy, 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 considerate 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 NOW. It will ensure your family is protected meanwhile. 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 makes it a “must-buy” if you are in your early 20s and you are looking for an affordable term plan:
i. You get insurance cover at an affordable price
ii. The age of entry is between 18 years and 65 years
iii. The age of maturity is between 23 years and 70 years
iv. The policy is very simple to under and the process to purchase is even simpler
v. 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
vi. If one opts for a single payment option, in the event of death, the nominee will receive 125% of the single premium or absolute amount assured to be paid on death (whichever is higher)
vii. If one opts for a regular or limited premium payment option, in the event of death, the nominee will receive 10 times one annualized premium or 105% of total premium paid or absolute amount assured (the higher of three)
viii. Sum assured is between Rs 5 lacs and Rs 25 lacs, offered in multiple of Rs 50,000
ix. You also get tax benefits on the premium amount you pay
How to Buy Saral Jeevan Beema?
Canara HSBC Oriental Bank of Commerce Life Insurance offers Saral Jeevan Bima Term plan, and you can buy it by following 5 quick steps:
i. Decide the sum assured you want
ii. Choose your policy term, premium payment frequency, and premium payment term
iii. Provide basic information like your age, education, health status, alcohol/tobacco consumption, etc
iv. Based on the information you have shared, the premium is calculated
v. Read the final terms and conditions of the policy, if you agree, you can start paying your premium
Other Insurance Plans that you may Consider
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. Canara HSBC Oriental Bank of Commerce Life Insurance Health First Plan offers you a health insurance cover that will help you overcome your immediate medical expenses by giving you a lump-sum amount.
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. Looks for life insurance that offers you:
i. 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 Star Term Plan gives you an option to choose the cover amount as per your need.
ii. 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.
iii. Add-ons offers: Check for the add-ons the life insurance plan is offering - base cover, accidental death benefit rider, cover against critical illness, etc. Under iSelect Star Term Plan, you are insured for both deaths and terminal illnesses.
iv. Claim Settlement Ratio: This refers to the number of claims the company has settled per 100 cases. Canara HSBC Oriental Bank of Commerce Life Insurance has a claim settlement ratio of 97.1% 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.