Just after finishing education, one’s dream is to get a dignified job. After getting the first job, earning the first salary is really exciting. An individual may have various plans after getting the first money of his life. Some may plan to celebrate it with a party. Others may plan to buy gifts for their near and dears ones. The list can be endless, but one may plan to spend this amount on term insurance as well.
People wonder why to spend their first salary on term insurance, but the real benefits can be felt in the later stage of life. It comes with its own set of benefits, and it is always better to plan for the future right when one starts earning. While planning to spend on term insurance, term plan comparison is an important step, and it is better to search for the best term plan in India. So, what is term insurance? Keep reading to find out.
Image Courtesy: Shutterstock
Understanding Term Insurance
Term insurance is the most common form of life insurance. With this type of insurance plan, candidates can opt for a better life coverage amount right at a lower premium. While obtaining a large amount of life cover, it is a must to wisely choose the best plan for term insurance that can provide the best benefits.
There are several benefits in the list, and some of them are:
1. Financial Discipline
It is always better to plan for finances. It is better to start spending some amount of the first salary for Term insurance; this will help secure the future rights from initial ages. After all, it is better to gain independence as soon as possible. When individuals start investing early, they can enjoy a stress-free life in their later stages of life.
Insurance helps them gain security to repay medical expenses when required. It is thus essential to start paying premiums right with the first salary. This also helps establish a healthy habit to keep paying for premiums by managing the total amount of salary.
2. Big Cover With Low Premiums
The premium of any life insurance plan depends on various factors, including age and medical conditions. So naturally, the lower the age, the lower will be the premium amount. It is thus better to start insurance at the right age because, at this age, one has low liabilities and better health conditions.
While paying for the premium early, the same premium will continue for the rest of the life, so right at the low premium, one can gain better coverage at later ages. Planning for insurance at the right age is also useful because it provides financial support for your family in need. And the same applies to investments in the best term plan in India.
3. Tax Planning
Not everyone knows that term insurance can also act as a medium to reduce tax liability. When an individual starts earning a subsequent amount, it is required to pay a certain amount of tax from the total income. It is thus advised to plan for it right with the first salary.
While filling your taxes, one can get a reduction in the tax if they are already paying some amount as a premium for insurance. By paying a premium for health insurance, one can not only get life cover for later ages but also get discounts in tax.
4. Smart, And Responsible Option
One would wish to do something memorable with the first salary that can be appreciated in the later stage of life. So it is best to invest some amount in the best term plan in India with the first money that can make one proud later. This is a smart decision to provide financial support to the family. It is sure that when an individual takes such a responsible decision at the right time, he will surely be appreciated by his family.
Life insurance may sound like something that can be needed at a later age, but its planning must start right from today. Start investing in life insurance right with the first salary so that one can gain a habit of spending some amount of the salary on insurance. This helps start insurance at the right age with lower premiums. It can also help gain tax rebates and provide an added benefit of financial support for the family. Also, by planning to pay for Term insurance with the first salary, one can make a decision that he will always be proud of.
While planning to get insurance, it is important to opt for the best term plan in India. There is a list of companies that offer the best plans. Compare the plans and choose the best, one can take the help of tax calculators to calculate premiums that are needed to be paid for life insurance.
