When Is The Right Time To Buy Term Life Insurance?

By BankBazaar | January 13, 2016

Term Life Insurance

Wouldn’t it be great to know that your loved ones won’t face any financial instability in the event of your demise? That’s where a Term Life Insurance policy will help you.

A Term Life Insurance policy provides a certain sum as reimbursement to your nominees if you aren’t around. One of the most important questions that you may be confused about is, when the right time to buy a Term Life Insurance policy is.

The general idea about getting a Life Insurance policy is to get one when you’re young so that you pay a lower premium amount. We can give you some scenarios to help you decide your insurance needs according to different life stages.

You just started earning and are unmarried

Your insurance goal at this stage would be saving for your future expenses and building a bank balance. Think of investing wisely and save on taxes. In your 20s a Term Life Insurance is more affordable. The logic is really simple. Start early, save more.

You just got married 

At this point, you would need to focus on saving for future needs and begin a savings plan for your family. A life cover would be a good idea to protect your spouse.  All in all, more financial responsibilities. Take a Term Life Insurance at 30 and it would have to be one with more coverage.

You are married with young children 

Your children’s education and future expenses take centre-stage now. You may want to protect your family from the burdens of loan repayments if you aren’t around, and begin thinking of planning for your retirement. This means a higher degree of financial protection.

Your children are starting college

Children in college? Time flies, right?Now would be a good time to start thinking of putting your feet up and plan for your golden years. Term Plans? We’ve got a better idea. Think pension plans.

While you’re thinking about Life Insurance, don’t believe these myths about Life Insurance.

Let’s tell you what you should consider when you’re ready to buy a Term Life Insurance plan.

  • Life stage and dependents

You buy Life Insurance to secure the financial future of your loved ones in your absence. Think about how many family members and dependents you have. In the end, it’s all about family, you know.

Additional Reading: Need help making a Life Insurance claim?

  • Income

Are you the sole breadwinner of your family? Are there other sources of income that contribute to running your household? This would affect the amount of Life Insurance you need.

  • Your liabilities

Home Loan, Car Loan, Education Loan for children. No, we are not listing the types of loans. Do you have any of these? Well, then you might want to get a Life Insurance cover to match the amount of your outstanding financial liabilities.

  • A steady income for your loved ones to maintain their lifestyle

Try to provide a steady income to your family that will help to cover their everyday needs. With your Term Life Insurance you could try to give them a fixed monthly income.

Have we made it easier for you to decide now?

All information including news articles and blogs published on this website are strictly for general information purpose only. BankBazaar does not provide any warranty about the authenticity and accuracy of such information. BankBazaar will not be held responsible for any loss and/or damage that arises or is incurred by use of such information. Rates and offers as may be applicable at the time of applying for a product may vary from that mentioned above. Please visit www.bankbazaar.com for the latest rates/offers.

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