Get subscribed to our newsletter
Get interesting updates to your email inbox.
The normal belief is being young and healthy, we need not bother about insurance as liabilities are less. In contrary to the prevalent view, purchasing term life insurance early is not just significant but also advantageous. Your 20s is a good time to purchase affordable term life insurance coverage (even though you may not need it). Generally, when you are younger and healthier, you pose less risk to an insurer, which is the reason you are offered the most affordable rates.
- Term insurance policies are generally appropriate for accompanying life situations and requirements. If your budget is tight, then a term insurance plan is a better choice as a cash value insurance plan costs significantly more. A term insurance plan is likewise appropriate if you have taken an enormous credit like a housing loan, car loan, etc.
- Term insurance is the minimum needed to give monetary security to your family if there comes an occurrence of your untimely demise. It is the least expensive policy to shield your future income from the danger of you dying before you have earned it.
Reasons why you should buy term life insurance early
Reason 1: The premium amount for a term insurance policy is low:
This is the biggest advantage of buying term life insurance early. As you grow old, the premium for life insurance policies increases. How about we assume, you need to purchase a Rs 1 crore term insurance plan that gives you inclusion till the age of 75. If the yearly premium you are likely to pay is around Rs 8,000 at the age of 25, then you pay around Rs 10,000 at 30 years. And, when you will be 45 years, you will have to shell out Rs 30,000 as the yearly premium for the same coverage amount.
|Term Insurance Yearly Premium at Different Life Stages|
|Coverage Amount (In Rupees)||Age||Yearly Premium (in Rupees)|
Samples Premium for Representation Purpose only
At a more young age, you are healthy and have lesser responsibilities. And, insurance companies consider these things while deciding term life insurance premium.
Reason 2: As the premium amount is locked for life, you pay much less in total:
Once you buy a term policy, the premium amount is locked for a lifetime, i.e. it remains the same throughout the policy tenure. Hence, buying it early means saving a big amount of money over a period.
For example, for a term life insurance cover of Rs 1 crore till the age of 75, a 25-year-old needs to pay a yearly premium of Rs 8,000. That is, he/she has to shell out Rs 4 lakh in the next 50 years. Meanwhile, for the same policy, a 35-year-old individual pays Rs 15,000 per year, i.e. Rs 6 lakh over the years in total.
|Total Premium Amount Paid For Buying Term Insurance At Different Life Stages|
|Age at which the plan was bought||25||35|
|Coverage amount||Rs 1 crore||Rs 1 crore|
|Coverage till the age of||75||75|
|Yearly premium amount||Rs 8,000||Rs 15,000|
|Total premium amount||Rs 4 lakh||Rs 6 lakh|
This means you have to shell out Rs 2 lakh extra for the same policy for buying it at the age of 35 and not 25 years. So, buying term insurance early means saving more money.
Reason 3: Your family and dependents get covered earlier on:
If you are waiting too long to even consider getting term insurance, then this implies you are leaving your family vulnerable. If you die early, then they would need to confront monetary difficulty. Regardless of whether you are married or not, if your parents are dependent on you, then how will they deal with their expenses. Also, if you have any loans like car loans, student loans, or even credit card dues, then your family members should pay for them. This may put them under more monetary tension. Purchasing term life insurance early means you don’t need to worry over it anymore.
Reason 4: Enjoy tax benefits from the initial stage of your career:
The primary reason for buying a term insurance plan is to ensure that your family does not have to go through financial trouble if you are not there. But you also enjoy tax benefits for buying a term plan. Here are the tax benefits you avail against a term plan:
Section 80C: Under this, you can claim a tax deduction for the premium that you pay for the policy. Section 80C is the biggest tax deduction pool and under it, you get a deduction of up to Rs 1.5 lakh for specific investments and purchases.
Section 80D: This exemption is permitted on the premium paid towards health-related coverage plans like critical illness riders. You can claim deductions up to Rs 25,000 for the premium paid towards it.
Section 10 (10D): The nominee candidate can claim a tax cut while claiming the sum assured in the case of the demise of the policyholder. The entire amount is completely exempted from taxes.
ALSO READ: Is Moving Insurance Really Important?
Tax benefits are as per the Income Tax Act, 1961, and are subject to any amendments made thereto from time to time. The article is meant to be general and informative in nature and should not be construed as solicitation material. Please read the related product brochures for exclusions, terms, and conditions, warranties, etc. carefully before concluding a sale. Consult with your financial advisor before making any decisions on insurance purchases.
(Disclaimer: The article is sponsored and hence promotes some commercial links.)
Union Finance Minister Nirmala Sitharaman on Saturday asked the Directorate of Revenue Intelligence (DRI) to prevent dumping of toxic wastes in India. Speaking at an event to celebrate DRI's 64th foundation day, Sitharaman lauded DRI's compact strength of about 800 officers for their relentless efforts despite the imminent risks. The Finance Minister stated that the officers may be keeping a low profile, but they are acting like the frontline defence forces, doing spectacular work in safeguarding the economic frontiers of the country. "The recent smuggling attempts of huge quantities of narcotics, gold, red sanders, ivory, cigarettes etc. unearthed by DRI were appreciated by the Finance Minister," the Ministry of Finance said in a statement.
"Sitharaman said that the message through such enforcement actions should be such that these acts of brazen attempts at smuggling are nipped in the bud," the statement added. The Finance Minister also said that better coordination among the law enforcement and intelligence gathering agencies and sharing of actionable intelligence are the way forward in protecting the frontiers of the country more efficiently. "Sitharaman also asked the DRI to focus on interdicting dual use technology items as well as preventing the dumping of toxic wastes in our country," the statement said. (IANS/ MBI)
(Keywords: Directorate of Revenue Intelligence, Nirmala Sitharaman, India, Toxic Wastes)
Tech giant Amazon has expanded the sound detection capabilities of Alexa along with more features. Alexa can now identify the sounds of running water and appliances beeping, reports Android Central. This means users can set up an Alexa routine to notify themselves when the washer beeps to indicate that laundry is finished, the report said.
When Alexa detects that the faucet has been left open, it will send users a notification as well so they can take appropriate action, it added. Amazon previously said at its event in September that it would add the ability to programme Alexa to recognise custom sounds, but that feature has yet to arrive. Having said that, the two new sound detection capabilities not only help users save energy, but they also make it easier to avoid paying for unnecessary charges on your home utilities, the report said.
The retail giant has also announced ultrasound motion detection, which will allow you to set up "Occupancy Routines" on additional Echo devices. This feature allows your smart speaker to detect nearby motion and initiate a routine, such as turning on the lights. It is compatible with many of the best Alexa speakers including the 4th-gen Echo, Echo Dot and Echo Dot with Clock. (IANS/ MBI)
(Keywords: laundry, appliances, beeping, running water, Sound, Alexa , Amazon)
By Olivia Sarkar
Comforting Christmas cocktails help you enjoy the celebrations and get into the festive spirit. The Leela Palaces, Hotels, and Resorts offer distinctive cocktails ranging from Hot Toddies to Decadent Egg Nogs. Sit back and enjoy one martini at a time to make the festive season a little brighter.
Dirty Chai Eggnog:
30 ml Bourbon
30 ml Baileys
90 ml Hot milk tea
Sweet cream foam to top up
Cinnamon powder and star anise.
1. In a heavy bottomed med sauce pot, prepare tea with milk. Strain and let it cool.
2. In a cocktail shaker add egg white, Bourbon, Baileys with whole spices. Shake well.
3. Pour the tea in the glass followed by ingredients from cocktail shaker.
4. Garnish with nutmeg and cinnamon powder, whole star anise
Eggnog is a Christmas favourite that is accustomed to toasts for good health and prosperity.| Pikist
Inspired by the Christmas Spirits and holiday flavours is a wonderful concoction of warm whisky, sweet vanilla, and thick butter.
45 ml Butter fat washed Whiskey
20 ml Ginger bread syrup
15 ml Spiced Apple liquor
2 dashes of Bitters
1/2 teaspoon Vanilla extract
1. Pour all ingredients into a cocktail shaker
2. Shake well
3. Pour into an old-fashioned glass
4. Garnish with Gingerbread cookie
Inspired by the Christmas Spirits and holiday flavors is a wonderful concoction of warm whisky, sweet vanilla, and thick butter. | Flickr
(Keywords: Santa's Apple, Egg Nogs, December, Cocktail, Cocktail, Christmas, holiday, celebrations)