When you are young (18-26 years)
This is the phase when you may feel that it is too early to buy an insurance plan. However, you cannot be more wrong about the importance of a life insurance policy at this stage.When you are young and healthy, you usually have fewer obligations and responsibilities. Insurance companies consider such individuals less risky. Hence, the premiums provided to them are very low in value. This helps these individuals save on their premiums. It also helps them avail a relatively larger life cover for a comparatively smaller amount.
Go for a term plan, or another suitable life insurance plan type, if you can afford the premiums.
When you are earning (27-35 years)
During these years, you are earning more but don’t have the heavy burden of responsibilities to shoulder yet. There may still be certain liabilities and obligations (in addition to your own life goals). You may need to save for those heavy purchases, such as a new home or a car. This stage of your life would be the perfect time to start saving for your life goals. Insurance can help you secure these goals. It can also help you secure your family’s and your dependents’ future.You can opt for a term plan with a monthly income option. It can give monthly pay-outs to meet your financial needs.
When you have responsibilities (36-50 years)
This is the stage of maximum responsibilities. You will probably be married and may have kids or be planning for them. Along with meeting your own financial needs and planning for your life goals, you will need to think about your children as well. You may have to plan out their higher education and their future.Also, this is the time when you may have a few debts you are paying off, and hence you need to take care of your finances, too. You also need to plan for your retirement and provide a secure future for your loved ones in your absence. Hence, having life insurance is important at this stage.
It would help if you had a robust insurance plan in place by this stage that covers all your goals and investments, to protect your family members against unfulfilled debts and liabilities in case anything was to happen to you. A ULIP is probably the best bet if you are also looking to multiply your wealth at this stage. It provides the dual benefit of market-linked returns and life cover.

When you have responsibilities (36-50 years)
Retirement can occur at any time after turning 50. Being financially independent at this stage is crucial. In this phase, you might still be having some unpaid loans and unfulfilled dues. They may include education loans for your children, a home loan, or a car loan. Also, in the case of early retirement, the sudden loss of income can hit hard. In case of your untimely demise, it can harm your dependents. Hence, even in this stage of life, it is not too late to opt for insurance.
You can opt for a term plan or a life insurance plan at this stage. You can also go for plans offering decreasing coverage as they come with lesser premiums.
Whatever stage you are in life, it is always beneficial for you to prepare yourself for the worst. Hence, a life insurance plan is important at every stage in life. A life insurance policy can help take care of your family by enabling them to handle financial obligations in case something happens to you.