Millennials are considered to be one of the smartest and most logical generations. They prioritise their work-life balance and lead financially and emotionally sound lives. They are also very aware of their responsibilities and take their wellness seriously. As a result, they are result-oriented and always look for the best investment options. If you are a millennial and want some good investment plans, consider getting term insurance. It is an excellent option for young people standing at the threshold of their careers. Read on to know more.
Reasons why term insurance proves to be an excellent investment option
Here are some reasons that tell you why term insurance is one of the best options for investment plans:
1. Life coverage
One of the main reasons for buying term insurance is to get life coverage. It is one of the most important reasons to choose term insurance as an investment because everyone needs life insurance. We live in uncertain times, and everything is unpredictable, including your years on earth. Therefore, you need a good life insurance cover to ensure your loved ones are financially protected after your demise. Term insurance also helps in tax planning, which is an added benefit.
2. Affordable
Term insurance is among the chosen investment plans for millennials because they are very affordable. As a millennial, especially when you are just starting your career, you may not be able to spare a large sum of money for insurance premiums. This is why term insurance comes in handy. It allows you to stay covered without straining your finances too much. You also get to do tax planning, which further helps you save money.
3. Easy to get when young and healthy
This is an excellent time to get investment plans like term insurance. It is a simple process; you can get term insurance online with a few clicks. As a young and healthy person, you won’t have to undergo any health screenings or face rejection due to pre-existing disorders. You also get the policy at a cheap rate. Take full advantage of this and get term insurance at the right time. As you age, your health begins to deteriorate. It becomes much more difficult to get term insurance at that time, so get it today and stay covered for the years to come.
4. Very flexible
Term insurance is one of the most flexible investment plans. It allows you to choose the coverage amount and life cover, based on your specific needs. It also allows you to adjust the add-on covers and make the policy tailor-made for your exact requirements. You can choose a premium-paying term that matches your budget and use the policy as a tax planning tool as well. These factors make term insurance very flexible and beneficial for you.
5. Available for a long period of time (future family protection)
As mentioned above, you can buy term insurance as one of the best investment plans and stay protected in the long run. You may not have a family or a lot of dependents right now since you are young and at the start of your career. But, soon you will get married, have kids and take on a lot of responsibilities. Indulge in some long-term thinking and make the wise decision of getting term insurance now, when it is available at the cheapest rate. Buy it for a long period of time, such as 30 or 40 years, and keep your future safe.
6. Loan coverage
Whether you have an education loan, a personal loan, a business loan loan or a car loan, you must get term insurance to cover it. It is advisable to have coverage as large as your loan amount. If something happens to you, your parents can use the proceeds from the term plan to clear the loan. That will be helpful for them at a difficult time.
7. Tax benefit
Finally, term insurance works as a wonderful tax planning tool. You get a tax benefit of up to INR 1.5 lakhs a year towards the term insurance premiums you pay. This is extremely handy and adds to the value of term insurance as one of the best options for investment plans.
Conclusion
So, as you can see, term insurance is extremely beneficial for everyone, but it works exceptionally well for young people. So, if you are a wise millennial about to start your career, invest in a term insurance policy right away. It won’t cost you a lot of money right now, and you can get it instantly while sitting at home. Make use of these advantages and make one of the smartest financial moves of your life.
