Ideally, the best time to buy a term plan is in your twenties – right when you enter the professional world. You are young, have the least liabilities, and have no long-term diseases to worry about. These factors sum up to get you an affordable monthly premium. But what if you are in your forties when you think of insurance? Read on to know why it’s a great idea even then!
A term insurance plan is still affordable
There is no denying that you need to buy a term plan in your twenties. So, going by that, you have arrived a bit late to the decision. The increased age also comes with diseases and ailments that tend to increase the premiums. However, being one of the most affordable insurance plans, you can be assured that your premiums will not be exorbitant even when you take the policy in your forties.
Protecting your family’s dreams and goals
This is the time when you really need to sit down and plan every detail from scratch. Right from your kid’s higher education to your retirement – each aspect needs your careful attention at this point. What happens to all those dreams and goals if life takes you by surprise? Preparing for such a situation, even when you are forty, is not a bad idea.
Ensuring debt protection for your family
You have certain debts for which you need to make monthly payments, such as car loans or credit card bills. In your absence, the burden of such debts will fall on your family. When your family is already in a state of despair, the last thing they would want is to worry about EMIs. A term plan is an effective way to get them freed from any such worries.
Offering financial security after retirement
A term plan comes in handy even after retirement. It is not just about death benefits on offer. You are used to a certain lifestyle in all these years of earning a steady income. You should not have to change that lifestyle completely after retirement. Getting a term insurance plan can assure you of that. Think of it as an investment you are making towards a peaceful retirement. Just remember to use an accurate Term insurance calculator to find the right sum assured.
Go for the decreasing coverage option
You might have too many liabilities now, but those are going to decrease progressively. So, by the time you retire, you will have least to no liabilities to take care of. Therefore, if you are getting the policy in your forties, then talk to the insurance company beforehand and see if they can offer the decreasing coverage option. Under this option, your coverage will decrease each year to make the premiums more affordable to you.
The bottom line
That’s all! It is never too late to buy a term plan. So, if you want to buy it in your forties, then go ahead and do it. You will still enjoy all the benefits available.