Are you in the twenties? At this age, you may think life insurance is a waste of money. Life insurance is the ultimate financial tool for those big 'what if' situations. But some people think older couples with children and homes need life insurance.
The potential benefits of insurance can be just as large and cost much less when you are at a younger age.
There are many advantages of getting life insurance when you are in your mere twenties:
At a young age, you have to make bigger investments to make in your education, personal lives, and your kids' education and so on. ,
In the form of policy loans, you can access a part of a certain amount of cash value from your insurance account.
This can be useful to finance your wedding, your kids' schooling or to pay off your own student loans. Take expert suggestions before availing it.
Buying insurance is cheaper when you are younger. If you do have dependents at this time it is always recommended to have a policy in the twenties. The coverage costs are much lower when you're single. Even if you're single, there may be other dependents and you need to ensure they're taken care of. When you're young, healthy and have a good family health history, your insurability is maximum, and you can get the best rates on your life insurance policy.
Long term goals
Life insurance policy keeps you invested for the long term, this would help you achieve your long-term goals. You may have dreamed such as buying a home, planning retirement or a world tour etc.
In your twenties, you may finish your studies and started helping your parents and siblings. You may have ageing parents. If you have loved ones who financially rely on you, then it's important for you to provide a financial safety net for them. You can start a life insurance policy with a lower premium and can be renewed year by year. The premium goes up every year.
It is the most important merit of having a life insurance.You could save taxes with insurance policies. The premium you pay on an insurance policy is eligible for a maximum tax benefit of Rs 1.5 lakh under Section 80C. The insurance policy will be eligible for tax-free proceeds on death/maturity under Section 10 (D) of the Income Tax Act, 1961.