Undoubtedly, buying a term insurance plan is a good idea at any age, especially if your loved ones depend on you. In case something happens to you, your financial dependents might struggle. Having a term insurance plan can help them alleviate their financial worries. If you are a self-employed person and in your 40s, this guide is for you. Here, you will read the top features of term insurance plans for self-employed individuals over 40.

Why is term insurance required for a self-employed individual over 40?

Over the last few years, instances like the pandemic outbreak, natural disasters and geopolitical tensions have proved how unpredictable life is. As a self-employed person, you may have many financial responsibilities and liabilities to fulfil throughout your life. Have you ever wondered what will happen to your loved ones when you are no longer around them? Hence, it is essential to prepare for your family’s secure future today.

You may choose a term insurance depending on your loved ones’ lifestyle and essential repayment obligations. While for some, a  1.5 crore term insurance plan might be well suited, some may be looking for a more affordable option. Take a look at the following reasons to learn how a term insurance plan can give you long-term peace of mind:

  1. Affordable premiums
    When you are in your 40s, you may focus on adopting a healthy lifestyle to prevent the risk of age-related health problems. However, life is known for its surprises. Term insurance plans offer better coverage at affordable premium payments than all other life insurance policies. Also, buying a term insurance plan with no pre-existing diseases can be more affordable than buying it late in your 50s and 60s, when you may be more prone to health risks.
  2. Safeguard your family’s future.
    Are your family members dependent on you financially? Are you the primary earner in the family? Secure their future today with a term insurance plan with adequate coverage. In case something unfortunate happens to you, it will give them monetary aid to manage their everyday expenses, debts, medical costs, school fees, and more.
  3. Customisable options
    Another benefit of buying a term insurance plan in your 40s is that it gives you the flexibility to choose the policy tenure. You may customise the duration of your policy according to your financial obligations and loved ones’ needs. To get the desired results, compare different companies’ term insurance plans with their premiums.
  4. Cover long-term debts
    By the time you are in your 40s, you are probably well-settled. You may also be comfortably paying your loans, such as a home loan, car loan, etc. What happens to these debts if something happens to you? You do require term insurance coverage to cover your liabilities. It will help your loved ones repay the debt in case tragedy strikes. With a high sum assured, it will be easy for them to repay these obligations.
  5. Tax benefits
    If you are a self-employed person, reducing the personal income tax amount is essential to save money for other significant goals. Buying a term insurance plan not only protects your life but also reduces your tax liability. You will be eligible for tax relief of up to Rs. 1,50,000 u/s 80c of the Income Tax Act. Also, the death benefit that your nominee will receive would be tax-free.
  6. Add-on cover benefits

You may enhance your protection with the help of add-on covers. They give you an option to safeguard your and your family’s future against unforeseen critical illnesses, disabilities, or accidents.
7. Easy to purchase
Buying a term insurance plan is easier than you expect. You do not need to undergo a tedious process that needs much time and effort. All you need to do is find a suitable term insurance plan. Buying term insurance online is quick and easy.

Things to Consider When It Comes to Buying a Term Insurance Plan in Your 40s

You are not too late to pay for a term insurance policy in your 40s. Hence, buy the right plan before health issues can start to impact you. Keep the following points in mind:

  1. Calculate your financial liabilities to cover them in case you are no longer around to take care of your family’s needs.
  2. Choose your insurance provider carefully so that you get the optimal benefits you always need.
  3. Check the insurer’s claim settlement ratio.
  4. Read the policy’s exclusions and inclusions to make a well-informed decision.
  5. Get sufficient coverage for accidental injuries, disabilities, and critical illnesses with add-on covers.

Conclusion

To sum up, you need to buy a term insurance plan to safeguard your dependents’ future if something unfortunate happens to you. Buying it early on will help you get good coverage at affordable premiums. Plus, by choosing add-on benefits, you can get enhanced protection against critical illness, accidental injuries, or disabilities.