Should Young, Working Couples Buy Term Insurance?


Term insurance is a product that sums up the idea of life insurance as comprehensively as it can be done. This policy makes sure that every part of the premium you pay goes towards the life coverage. If you end up dying within the term of the policy, your family gets the entire amount mentioned as sum assured within the policy.

Since, it has a singular purpose of providing life cover, the premium for an online term insurance policy is quite low. With the high and straightforward coverage along with the low premium, it is not surprising that many prefer term insurance to traditional life insurance plans. These plans include endowment plans, money back plans, ULIPs, and many more.

However, one of the biggest disadvantages of term insurance is the lack of maturity benefit. Due to this, many young working professionals avoid buying term insurance plans. This is especially true in the case of unmarried individuals. Moreover, many young married couples avoid buying term insurance. The reason for this is because they are both working professionals, they might think that they do not need life insurance. But, is this a right approach? Let us find out.

Buying Term Insurance at a Young Age

As a working professional, you may be earning well to fulfill your current needs. But you have no idea what the future holds for you and your family. Thus, when thinking about buying term insurance, you should think about all the financial needs your family will have in the future instead of the one they have now.

If you do not buy a term insurance at a young age, your coverage will not have enough time to settle. But you should know that there is no such thing as a term insurance age limit that you need to worry about. The only thing is, buying a term insurance policy at a young age will be extremely beneficial for you in reaching your life goals.

Moreover, there will be a time when your parents will be dependents for you. At such a time, creating a life savings corpus, covering expenses for your children and your parents can be too much along with the regular living expenses you have. Hence, you should make sure that you secure your family’s future for a low premium. That way, you can divert the money you earn towards covering current expenses and saving for some future ones.

Most people think they do not need life insurance at a young age. Most people wait until much later in life to consider buying life insurance. This could be when you see the first sign of developing a medical condition, or at the birth of their child. However, what you do not realize is that premium for buying a new term insurance plan grows with age. The older you are, the more a term insurance will cost you. Use a term insurance premium calculator and find out. The best option is to buy the policy at a young age. You can make certain changes to the policy later in life if you need to, but the premium cannot be changed once the policy is bought.