A general question about life insurance is, ‘What is the right time or age to get insured?’ While there is no particular answer to this question, this post will make it simpler for you to decide.
With all the various choices like term insurance, endowment plans, and Unit Linked Insurance Plans (ULIPs), choosing one as per your insurance needs can be confusing. But questions about selecting the right type of insurance only get into the picture when you are out to buy life insurance. You should understand the right time to invest. Should you do it in your 20s, or is 30s the better choice? How about buying life insurance in your 40s or 50s? The information below will help you to choose what is right for you.
Does your family depends on your income?
- The right time to buy life insurance varies from person to person, depending on family and financial circumstances. Generally, you need life insurance if other people depend on your income, or if you have debt that will carry on after your demise. After all, you don’t want to leave your loved ones without money to live on or on the hook for your credit card debt.
- Don’t let your family bear the burden of your loans such as home loans, car loan, etc. Life insurance may help you to cover these loans so that your financial burdens are not passed on to your family.
- If you know this, then it shouldn’t be hard for you to understand that the right time to buy life insurance is when you have family members depending on your earnings. The dependents could be your parents, siblings, spouse, or children.
The age factor
- Apart from the dependents factor, it would be helpful for you if you also considered your age to select the right time to buy insurance. You are at your healthiest when you are young. So, your unexpected demise’s risks are relatively low in your 20s compared to when you are in your 40s.
- The healthier you are, the lower your demise’s chances, and the lower the probabilities for the insurer to pay the death benefit. That is why the life insurance premium is lower in the earlier years of life and start getting expensive with age. Even if you do not have dependents, it is, however, sensible to buy life insurance early in life.
Making the decision
- It is not just that life insurance is all about risk coverage. In fact, life insurance offers a wide range of options to meet your financial goals.
- You get the benefits of investment, savings, and life cover under a suitable life insurance plan. Plus, tax benefits under life insurance for premiums paid
- Whether you are looking for providing a financial shield to your family or looking for the right solution to meet your short-term or long-term financial goals, life insurance provides you with a wide range of options.
To know more and evaluate the options carefully do call me.