Why Buying a Life Insurance Is Important No Matter The Age

Importance of Life Insurance No Matter the Age

Life Insurance has become a hot commodity especially after the passing of the Life Insurance of India Act in 1956. The importance of life insurance lies in its ability to secure the family’s future in case of the insurer’s demise. The fact that you are not leaving your family behind in any financial duress adds to your peace of mind. Life Insurance plans do not come with an age limit. Let us look at how it is going about purchasing Life Insurance at every age.

The 20s

The early 20s are characterized by a mix of college graduates as well as youngsters working their first job. Their thoughts range from earning a good salary to getting their first car or investing in their first house. Also, the majority of youngsters are single and have no dependents. Hence, purchasing a Life Insurance plan is usually the last thing on their minds. However, this is the best age for getting a policy. Here’s why

• Premiums are fixed over the entire tenure of the plan. Starting early can help you avail lesser premiums, which are constant.
• You can start planning for your retirement plan right from this age itself.

The 30s

It is the age where a majority of the population is settled with a stable career and decent savings. Also, a majority of the population in this age group is married. So this is when most of us start thinking about Life Insurance to secure our families. Life insurance's meaning and importance becomes especially relevant during this phase as personal needs take a backseat, and people start thinking about their family’s future. The 30s is an ideal age to invest in a life insurance policy, as the individual is free from other financial obligations that come up at later stages.

The 40s

The 40s is when the majority of those who were reluctant in the beginning look towards getting insured. For the breadwinners of the family, worries start creeping in, and they realize the importance of life insurance. However, this is the time of maximum financial duress, with children’s education and in most cases, dependent parents to be taken care of. A plain term insurance policy is the best investment at this age, as risky aspirations might negatively affect your savings. At this stage, understanding the importance of life insurance can help ensure you choose the right plan for your long-term security.