Someone has rightly said, “Planning to support your loved ones, even when you are not there, is the real sense of responsibility”.
It is interesting to note that people often refer to life insurance as ‘love insurance’ because it secures the future of your family. While some people may delay taking term insurance others may completely ignore it only to regret it later.
If you are wondering when is the right time to buy a life insurance policy, allow us to get you at pace with all the relevant information. So, let’s get started.
What is Life Insurance?
This is a contract between an insurance company and the policyholder. Here the insurer assures to pay a promised sum amount to the beneficiary upon the death of the insured person.
Types of Life Insurance Policies:
- Term insurance
- Term insurance with return of premium
- Unit Linked Insurance Plans
- Endowment plans
- Moneyback policy
- Whole life insurance
- Group life insurance
- Child Insurance Plans
- Retirement Plans
When is the Right Time to Buy a Life Insurance Policy?
The answer to this question is extremely simple.
You should start investing in term insurance as soon as you can. The reasons for starting early are plenty.
If you invest in a life insurance policy early on in life, the premium payout will be lesser. It is a general notion among buyers that one should invest in life insurance only once they have settled in their life. But if you choose to do so, you may have to pay a higher premium.
Not just that, but there could be additional expenses at that state in your life like your children’s higher education, unexpected medical expenditure, and so on, which may put you in a stiff spot financially.
It is a wise decision to invest in a personal or joint life insurance policy as soon as you have dependents. This could include your retired parents, spouse, or children. On a rough estimate, a person in his early 30s would have to pay about ₹ 8000 for a term cover of ₹ 1 Cr whereas a person in his 60s might have to pay more than ₹ 11,000 for the same amount.
Not only life cover, but a good insurance policy can give you returns as well as double up as a retirement plan. In this dynamic market, you can go for the most profitable term policies when you start early.
Benefits of Buying a Life Insurance Policy
Some of the top benefits of a life insurance policy are –
- It provides financial security
- It secures your child’s future allowing you to give them the best education.
- Life insurance prevents the burden of a loan over your family’s head.
- If your life insurance scheme gives you a pension upon maturity, it works as a good retirement plan
- Assured tax benefits
Several financial companies offer a variety of life insurance policies with multiple benefits. You can take some time to compare one term insurance with another and choose the best one that suits your needs.
With a simple policy, give your family the financial assurance they need.