It’s never too early for term insurance. Life is full of surprises and unpredictability. 20-somethings are well-versed and passionate about life and career. They plan their finances early and understand their responsibilities. Thus, buying term insurance as soon as you start working is wise. A term insurance plan protects you and your family financially.

What’s term insurance?

Term insurance protects our loved ones from life’s biggest risks. Term insurance policies cover passing away prematurely and provide a death benefit to the policyholder’s family to cover expenses. Buy a term plan early. Young people pay less for good term plans.

An example:

Most 20-somethings work to get a student loan for college or business. Freshmen earn low salaries and take years to pay off debt. If something terrible happens, your family will take over your financial responsibility. Thus, term insurance relieves financial stress and makes debt repayment easier for your parents. Insurance researchers and experts recommend buying a term plan early.

Have you considered this? Why is an early term plan so important? Read on to learn why term insurance is best bought in your 20s:

20s term plan benefits

Lower premiums

Term insurance has lower premiums. Early term insurance purchase drastically lowers premiums. You may be healthy and active in your 20s and can buy a term plan with high coverage at lower premiums. Younger people with pre-existing conditions pay lower premiums. Age determines insurance premiums. Young people are healthier and less likely to develop chronic diseases, thus lowering their monthly premiums.

However, advanced age indicates health issues and a higher claim risk. This is why seniors pay high premiums. However, early term insurance can save you money in the long run. Use a term insurance calculator to know the premium amount for your coverage, especially if you are young and have little money to spare.

Easy purchase process

Insurers now sell term plans online, which is more convenient. Policyholders can compare plans from multiple insurance companies based on features, benefits, premium amount, terms and conditions, sum assured, etc. and make an informed decision. These can be found on a host of sites that offer such services.

Term insurance calculators and eligibility calculators are also available online. These calculators help you calculate your premium based on age, sum assured, income, and lifestyle. Thus, you can quickly select the right term insurance plan.

Longer protection

Buying a term plan early on gives you affordable coverage for longer. You can buy a 30- to 40-year long-term policy to protect your family’s financial future by paying a low premium.

Low rejection risk

Policyholders over 60 or with critical illnesses like cancer usually cannot get term insurance. Thus, young, healthy people can buy term plans at lower rates. If you wait, you may develop health issues and be charged higher premiums due to pre-existing conditions. And for a longer period, you can claim term insurance tax benefits every year on the premiums you pay. **

In your absence, look after your dependents

You may not support your family in your 20s. However, if you are the sole breadwinner, you must buy term insurance to protect your family in the event of your death. Dependents can use the death benefit to pay bills and expenses. Thus, a term plan protects your family even if you’re gone.


Term insurance plans can be customised with riders to boost their benefits. Riders add financial security to your plan for a small fee.

Tax breaks

Term insurance protects your family and helps you save money early in life. Term insurance tax benefits are great. Section 80(C) of the Income Tax Act, 1961 exempts policy premiums up to Rs 1.5 lakhs from taxes. Investing early reduces taxes.


Banks and financial institutions now offer term insurance. Different factors determine each policy’s premium. Before buying a term insurance plan, consider income, age, liabilities, debts, plan coverage, and expenses. Choose your plan wisely and invest early.

Do your research, and plan carefully for your family’s financial future. If something unfortunate happens, your life insurance payout will be the safety net they depend on to go out and have a bright future. 

Your kids can go abroad to study and get ahead in their careers. Your spouse can pay off any loans that may have been there. Your parents’ health can be cared for, and their old age can be comfortable. But this is possible if you get enough coverage for unforeseen events also. With this financial safety net, no matter what happens, your near and dear ones will always be safe from uncertainty.