Who Should Opt for a 30-Year Term Plan?

When you start earning, the first thing in your mind is financial stability for your family. However, the future is unpredictable. So, if you are financially stable that does not mean that it will remain the same in the future, especially if you are not around to take care of your family. This is where term insurance comes into the picture.

Term insurance plans have different policy periods. The most common are 10, 20 and 30 years. However, some insurance providers can go up to 50 years. For example, one of the Tata AIA term plans has a policy tenure of up to 40 and 50 years.

However, let us take the 30-year policy and understand who should opt for it.

Who Should Opt for a 30-Year Term Insurance Plan?

  • To Cover Your Long-Term Debt

If you have long-term debt on your head, a term insurance plan can be beneficial. The term insurance’s death benefit can protect your family’s financial stability if you meet an untimely death during the loan repayment period. However, in this case, you have to opt for such a term plan, which has a sum assured that can cover both your family’s financial needs and the loan repayment.

There are some term plans that have a return of premium, which provides you with the entire premium if you survive the policy period. For example, if you have taken the Tata AIA term plan online, you will get a return on the premium of a minimum of 100% and a maximum of 105% as a maturity benefit.

  • For An Affordable But Long-Term Cover

Not many people like paying for life insurance, but they know that they need one. Moreover, the term period of an insurance policy is directly proportional to its premium. So, if you are looking for a 30-year life cover, the premium is bound to be high unless you opt for a 30-year term plan insurance.

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Terms plans are usually affordable, which is why it helps you get a life cover for longer durations (30 years or more) without spending much on it. However, if you are planning to buy a term plan, do not go for the best term plan. Instead, you should opt for a good insurance provider. And that way you will get a great term plan as well.

  • A Newlywed Couple

If you are a newly married couple, your expenses suddenly rise. You need a new house, new car, new furniture, etc. In fact, the financial responsibility also increases, for which you need life insurance. This is where a 30-year term plan can help you manage your finances better.

Due to its affordable premiums, it does not put much burden on your budget. Moreover, it provides you life cover for a term of 30 years, which is good enough to take care of other financial liabilities such as purchasing a house, child’s educational expenses, etc.

Moreover, if you purchase a term plan online with the return of premium, you also get back your total premium payments when you survive the 30-year term period.

  • Far Away From The Retirement Age

If you are still in your 20s or early 30s, your retirement age is very far; you spent most of your income meeting your financial goals. It can be travelling, buying a house, etc. So, you are usually left with very little money to invest in insurance. This is a 30-year term plan that can help you.

Since you are young, the premium will be low. As a result, you can get a longer duration cover at affordable premiums. Moreover, if you are looking for some savings even from this investment, you can opt for a return on the premium plan. There are many such plans available, and one such policy is the Tata AIA online term plan, which offers a minimum of 100% and a maximum of 105% return on premium.

Final Thoughts

Term plans are great insurance for long-term life cover at affordable prices. However, before you purchase a plan for a 30-year period, you should also check the term plan age limit. In addition, you must also analyse the insurance provider in terms of its credibility and claim settlement ratio. Once satisfied with all parameters, only then you should go ahead with the purchase.