Starting your new job and getting your first salary is a moment of pride and deserves much celebration. You can finally begin planning your life and work towards achieving your life goals. However, this goal should also include investing in beneficial financial instruments for the long term. One such option is term insurance policies that you should opt for without a doubt. Keep reading to understand why it is crucial to get online term insurance with your first salary.
Importance of Purchasing a Term Insurance
Term insurance plans enable you to secure a monetary backup for your dependents at an affordable rate. If you were to compare the sum assured amount available under term plans to the savings you can accumulate in the coming years, the latter isn’t enough. As you grow older, your responsibilities increase and so does inflation. Thus, your savings cannot be the only financial cushioning you can offer to your family.
Eventually, you would want to achieve certain life goals such as purchasing a home, vacationing abroad, providing Ivy league education to your children, etc. To fulfil these aims, you are bound to borrow and get help. Leaving such a financial burden onto your loved ones shall further worsen their condition along with the loss of a loved one. However, term insurance benefits come to the rescue, offering high coverage at the most cost-effective rates.
Why Should You Get Term Insurance with Your First Salary?
Go through some of the key reasons as to why you should opt for a term plan with your first salary:
- Safeguards your dependents
As mentioned above, term insurance allows you to leave a lump sum corpus for your family. As you have just started earning, you may not have any dependents, but you shall in the future as your parents retire. This amount can be used to pay off pending debts and to remain self-sufficient. Thus, your family won’t be financially dependent on anyone and have enough help to be worry-free.
- Offers affordable premium
Now that you have begun your first job, you must be younger without any health conditions. These criteria matter when it comes to deciding the premium rate. Hence, you can avail a lower insurance premium and start investing in a lucrative financial instrument early in life.
- Ability to choose a high sum assured
Because investing early in term plans enables you to get affordable premiums, you can opt for a high sum assured amount. Eventually, you would have a family of your own and children to take care of. Thus, an increased coverage can go a long way in securing your family’s financial interests. So, get an online term insurance plan now!
- Enables you to plan your taxes
You may or may not fall under the tax bracket right now but with time, your salary is bound to increase. Thus, such an investment can help you file your taxes for the first time and develop the habit of tax saving. In the future, you shall be much more experienced with investing in tax-saving instruments as you started early.
- Create a discipline
Investing in term insurance can also help develop a financial discipline for the long term. Beginning to save up and make wise investment choices with your first salary itself can really go a long way.
Now that you have gone through the perks of opting for insurance with your first salary, buy term insurance today! But it is recommended to use a term insurance calculator first and shop online for term insurance as it is more affordable when compared to policies available offline. You can easily compare and choose a suitable insurance plan online without being tech-savvy.