Don't make this insurance mistake!

Back aches and random pains in your body, are not the only problems you’ll have in your thirties. Most people don’t know this, but your twenties and thirties are the most crucial decades to buy your term insurance policy.

A friend of mine, let’s call him Ruchir, is going to have to pay Rs. 2.8 lakhs more, simply because he bought his term insurance 3 years late.

Had he bought it at the age of 29, he would have paid a lower premium, which would have stayed locked in till the end of the policy.

But he bought it at 32, when the premium was higher. And this means that over the entire duration of premium payment (till he reaches the age of 80), he’ll spend Rs. 2.8 lakhs extra in his premiums.

𝐖𝐞𝐥𝐥, 𝐰𝐡𝐞𝐧 𝐢𝐭 𝐜𝐨𝐦𝐞𝐬 𝐭𝐨 𝐓𝐞𝐫𝐦 𝐈𝐧𝐬𝐮𝐫𝐚𝐧𝐜𝐞, 𝐭𝐡𝐞𝐫𝐞 𝐚𝐫𝐞 𝐜𝐞𝐫𝐭𝐚𝐢𝐧 𝐦𝐢𝐥𝐞𝐬𝐭𝐨𝐧𝐞𝐬 𝐲𝐨𝐮 𝐬𝐡𝐨𝐮𝐥𝐝 𝐛𝐞 𝐚𝐰𝐚𝐫𝐞 𝐨𝐟.

I did a sample analysis for ICICI Prudential’s term insurance plan, and here’s how it plays out:

Till the age of 30, every year that you delay, your premium increases by 3-5%.

But the minute you cross 30, the story is different.

Between the age of 30 and 31, the premium increases roughly by 10%, and then again by 4-5% every year.

Again when you cross 35, there’s a higher increase.

And so on…

While the numbers will not be exactly the same for all companies, the point is that term insurance is best purchased early on, even if you don’t have dependents. This makes sure that you have purchased it at a lower premium, which stays locked in till the time your policy is active.

So if you’re less than 30 years old, do consider a few plans.

Even if you’ve crossed 30, it’s okay. You can’t do much about the back pains now, but at least you can get a term insurance right away so that you don’t end up paying more unnecessarily 🤷🏻‍♂️