Why Millennials Should Consider Term Plans for Future Protection

In recent years, the world has changed intensely, impacting our economy, lifestyle and financial choices. Thus, it is crucial for millennials, the generation born between 1981 and 1996, to understand financial future planning. They have the beginning of responsibilities for future protection, career growth and personal development. So, buying a Term Plan, one of the straightforward types of Life Insurance policies, is a great choice for the best future protection. Hence, in this blog, we will discuss why millennials should consider Term Plans for future financial planning.

What is a Term Plan?

Term Plan is a type of Life Insurance policy that provides coverage for a certain time and at a fixed rate. In case of the sudden death of the insured person during the policy term, a death benefit will be paid to the nominee. It is highly affordable and has no cash value component. So, now you know what the Term Plan is, let’s explore why millennials should get the policy early.

Reasons Why Millennials Should Consider Term Plans

Acting as a safety net,a Term Plan can provide financial protection to his/her family in case of the untimely death of the insured person. Moreover, it can benefit millennials significantly. Hence, millennials should invest in insurance policies that can lead to lower premiums, family financial stability and tax benefits.

• Financial Protection: A Term Plan provides financial protection for the loved ones of the insured person in case of unfortunate death. A lump sum amount is paid to the beneficiary, helping the family maintain their lifestyle. 
• Lower Premiums: Investing early is preferable as the premiums are relatively lower for young individuals. It is because they have a fewer chance of becoming sick or being diagnosed with critical illnesses.
• Tax Benefits: Term Plan also offers tax benefits under sections 80C, 80D and 10(10D) of the Income Tax Act, 1961. Millennials can avail of these benefits to secure their family financially.  
• Easy to Purchase: You can easily purchase a Term Plan online from the respective insurance company’s website. Over and above, you can get extra discounts available online, which help you increase your savings. Additionally, through online mode, you can use the Term Insurance calculator to check your premium rates, policy tenures, sum-assured amount and other benefits.
• Add-on Riders: Apart from death benefits, the Term Plan has different riders. Riders are additional features you can add to your base policy to enhance coverage. Some common riders include critical illnesses, accidental disability and accidental death benefits.
• Customised Life Cover: Millennials can modify their life cover as per their requirements and the affordability of premiums. Buying a life cover that protects your family financially when you are not around is a wise choice.
• Peace of Mind: By buying the Term Plan, millennials can ensure that their loved ones are financially protected if something happens to them. This reduces stress and provides peace of mind. 

In a Nutshell

Buying a Term Plan at an early age is a great option for financial future planning. Millennials must consider the above-mentioned factors to buy Term plans for their family to protect them financially in case of their untimely demise.

If you plan to purchase a Term Plan, one of the convenient policies of Life Insurance, then ensure you check various policies available online and choose the one that suits your requirements. Protect your family members at the right time with a suitable plan. The sooner you invest in a policy, the lower the premiums.

To buy the best Term plan, visit ACKO and check out all the policies available.