The one thing a 20-something needs to buy

We’re not talking about new clothes, an expensive phone or even a house – we’re talking about buying a term insurance plan. Read on to know why.

The 20s offer some of the best years of anyone’s life. This decade is marked by several firsts – you graduate and get your first job, you probably get into your first serious relationship and get married, and once you marry, you may also experience the joys of parenthood by age 30. Meanwhile, you are less fearful about switching jobs, you travel widely and often, you party and make new friends, and have a really great time overall.

These are also the years when you invest a lot in yourself. You shop often, you take exotic holidays and you buy the best personal and home accessories. But is there something you haven’t yet bought, but which is the most important item for you? It’s not the latest iPhone or even a new car – it’s a term insurance plan .

Here’s why you should buy term insurance when you are in your 20s :

Term plans are more affordable than other insurance products.

The biggest advantage of term insurance plans is their low premium payments. While most insurance plans are characterised by a ‘low premium-low sum assured’ model, this is not true of term insurance policies. For as little as Rs 17 per day (for example), you can get a large coverage of Rs 1 crore or above, based on the plan you choose and the tenure of the plan. So if you have recently started working on your first job and do not have too much money at your disposal to invest in an inexpensive plan, a term insurance plan is your best option. You can start off with essential life coverage at a really affordable cost to you.

Insurers offer lower premiums to those buying term plans early – and online .

One benefit that most term insurance buyers are initially unaware of, is that leading insurance providers are happy to offer term plans to prospective buyers who are in their 20s and who are relatively healthy. Non-smoking 20-somethings are the ideal candidates for term insurance providers – they are viewed as ‘low risk’ buyers. Thus, the premiums are lower for 20-somethings, and especially when the term plan is purchased online. This is because operational costs are lower online, and insurers are pleased to pass on the savings to customers purchasing term insurance plans online. Do use a term insurance premium calculator prior to making your purchase. Also feel free to request a call back or post a query on the insurer’s website if you want details about any aspect of the plan.

You have a plethora of options to explore as you age.

The 20s are the best decade of your life – you are young, healthy, financially independent and in the right frame of mind to explore your true potential. Buying a term insurance plan at this stage of life makes complete sense, because it provides essential life coverage to you at a time when you wish to devote your mind to other matters. Once the fear of not having coverage is eliminated, you get peace of mind to focus on your job, travel to foreign countries, working on part time employment, etc. Meanwhile, you are free to explore more expensive insurance products as the years pass by, since the term insurance is still active while you are.

Your dependents are well cared for in your absence.

Though you may not be your family’s primary breadwinner if your parents are still employed or if you are a younger sibling, your loved ones are still considered to be your dependents. However, the situation is different if you are already married and are considering starting a family. Whether one is single or not, there is always at least one dependent (parents, or spouse and children) to look out for. In your absence and the absence of your income, your dependents can continue the lifestyle they currently enjoy, apart from running the household expenses, meeting emergencies and also repaying any unpaid debts.