The decision to buy term insurance should be taken early in life, preferably in your 20s. However, if you are already in your 30s or 40s and still don’t have term insurance, you must get it as soon as possible. This holds for all people, but mothers in their 30s with young kids should not wait any longer. Take a look at this article to know more about the best term insurance options and why you need to get one right away.
Term Insurance for working mothers
When it comes to term insurance, there are a few things that you must keep in mind to find the best plan options. Whether you are buying term insurance in your 40s or 30s, you must be mindful of the following when making a purchase:
- Time left for retirement
Term insurance is commonly bought by young, employed persons as a financial backup. The idea is to create a monetarily safe future for their dependents if they die and their regular income stops. If you have small children who depend on you, and you also pay the family’s bills, mainly through your monthly salary, you need to calculate how many years you have till you retire. Your term insurance coverage should last till that time, so that if you happen to die, the proceeds from the term plan can act as your income replacement.
- Children’s needs
Next, you need to see what your kids’ needs are and how they depend on you. For example, if you pay their school fees, you need term coverage that’s large enough to cover those expenses. Also, if you are planning to send them abroad for higher studies, your term insurance should have a payout large enough to accommodate that expense.
- Financial goals
Everyone has a financial roadmap and some specific economic goals. If your goal is to buy a bugger house for your kids or to send them to Australia for their master’s degree, you need to have the correct investments in place. But what happens if you die suddenly, without fulfilling these goals? Well, term insurance can help. When you know what your financial goals are, you can get term insurance in your 40s or 30s with a coverage amount large enough to pay for your financial goals in your absence. All these factors will help you to choose the ideal term insurance in your 40s or 30s, depending on your exact needs.
Advantages of getting term insurance
As a working mother, you get the following benefits when you buy term insurance in your 40s or 30s:
- Kids’ financial security
As mentioned above, a good term insurance policy makes it easy for you to keep your children’s financial needs in check. Life is quite unpredictable, and you never know what daggers lie ahead. Hence, getting term insurance is a great choice for working mothers.
- Affordable and flexible coverage
Term insurance is one of the most affordable forms of life insurance. This makes it easy for working women like you to get term insurance in your 40s or 30s, while also managing the other expenses. You get substantial coverage at a low cost.
- Tax and financial planning
You can save tax when you buy term insurance. A tax rebate of up to INR 1.5 lakhs is available on the term insurance premium that you pay. This helps you to plan your finances effectively. Also, term insurance makes your financial portfolio a lot more diverse, so ensure you add a good term insurance policy to keep your financial health in check.
- Easy payout options
The term insurance claim process is quite simple. If you nominate your children as the beneficiaries, they can easily get the aid after your demise. You can also choose the payout mode based on the financial requirements of your children. You can opt for a lump sum payout or a staggered payout and effectively cater to the needs of your loved ones, even after you are gone.
The bottom line
Term insurance is one of the best forms of life insurance. As a young mother, you must get term insurance if you have not done so already. Keep all the points mentioned above in mind and get the most appropriate coverage. Add some handy riders to your policy to make it flexible and tailor-made for your needs. The Indian insurance industry is booming, and there are many excellent options for term insurance in your 40s and 30s, so explore them and find the best term plan for yourself.
