Many of us people think it is absurd to purchase the life insurance plans at an early stage of life, because you are too young to die and have a whole lot of life to earn and save for the life insurance plans, but truly speaking, the life insurance plans should be bought in the early years of your working life. Even if you go and ask any of the financial planner or advisor, they will also suggest you to go and purchase the life insurance in the early years of your earning.
Owning a life insurance is not a sign that you are near your last days, but it symbolizes your smartness and the ways how wisely you have planned for your family and loved ones even if you are not around to take care of them. Most of the people are unmarried in their early years of the earnings and they do not think that there is any need for the life insurance right now as they have not started off with their family life yet.
But think about it twice, once the family life starts, the responsibilities gets doubled, the expenses increases, the family needs to take some important investment decisions for the settlement of the family or the buying of a new house, or any thoughts about the family planning in the upcoming future years and so on the expenses keeps on increasing.
When do you exactly have the time to save from your mere income from which you serve the family, take care of your dependents and even pay for the mortgage?
When you are the only bread bearer of the family then you need to have a life insurance. The life insurance is the best investment plan to safeguard of the future of your loved ones after something happens to you. You can take care of your family members even when you are not around. The life insurance plans provides the death coverage for any uncertain event. The death coverage helps the family in the times of any financial crisis or provides them the financial strength and stability to carry on with their lives smoothly.
Read here: Complete guide on Covid-19 Medical Insurance
The Younger You Purchase The Life Insurance, The Better It Is
You would not want your family to suffer from the financial problems when you are not around and thus you would definitely want to set aside some amount of money that is more than enough for all the future needs of the family and the uncertain events that may occur in the future. And if you begin saving for your life insurance in the early years of your life then you can save more than others and can also save it very cheaply. As it is always said the younger the merrier.
Here are some of the major reasons which will support you in the purchasing of the life insurance while you are young –
- Health is wealth. It is a known fact that you are much more healthy and energetic in your twenties than you can be in later years, so you can work hard to earn more money and can start your life insurance soon by savings and investing with almost 10% of your total earning. And life insurance companies also rely on the health of the individual at the time of the issuing of the life insurance plans. You are prone to a large amount of premiums if you start your life insurance in later years when you are not as healthy as in your twenties.
- You can get loyalty benefits for being a long term client to the life insurance company. The companies provide lots of loyalty benefits to their clients in order to be competitive in the market. And if you have started off with your life insurance in early twenties, then by the time you are in your fifties, you would have earned a lot of life insurance loyalty benefits.
- Life insurance provides you the cash value. The cash value of the insurance amount is so much important factor. On the basis of the cash value, an individual can take loans and borrow money from the banks. The policy loans need to be taken for any major life events in the future years and thus there is another advantage of having a life insurance early.
- Save you money. It is always said to save your money, but keeping aside the money can reduce its time value and thus life insurance is the best way to invest the savings if you are a conservative investor.
- You can also get various tax benefits. The premiums for the life insurance plans reduce the total taxable amount and thus one can use it to save their income tax as well.
- The younger, the cheaper. This is true for life insurance, as you have a long period of time to save a huge pile of wealth for your loved ones, and you can also do it with cheaper premiums.
So these were the important reasons why you should be insuring yourself in the early years rather than waiting for your mid 40s when premium will be too high.