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Do I need term insurance? Under the specific crcumstance should I continue my policy or discontinue

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23 Mar, 2021 by  Naitik Mutha

Hi, I am 25 years old and have zero dependents. I recently started working. I wanted to know if I should get term insurance?

Having said that I have already subscribed to a TATA AIA term life giving me cover of 1cr till 75 years of age. I overenthusiastically took the policy last year after reading about personal finance.


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23 Mar, 2021

Hi Naithik,

It is advisable to have a term cover only if you have financial dependents, be it parents, spouse, kids or other family dependants who are dependent on your earnings. The other reason one should have a term cover is,if one has a loan liability.

One another important factor to consider is the price(premium) of term insurance policies, at younger age the premiums are lower. With increase in age the premiums are going to increase, so buying early makes sense.

Considering the above we believe you may still have financial dependents or are going to have financial dependents soon once you get married you should continue renewing your term cover.

However, if you think you don't have any dependents you can discontinue and take a new cover in future when you have dependents

Cheers.

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24 Mar, 2021

Yes dear , you need term insurance because you have a human life value .

You have taken right decision but you can save premium if you take term insurance till age 60 .


Your decision is important because of factors below :

  1. low premium till age 75 . Your entry age lowers premium for full term .
  2. Insurability because your insurability decides whether insurance companies will accept your proposal .

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