What Is the Right Age to Purchase Life Insurance?
Updated On Apr 26, 2021
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When it comes to buying life insurance, the sooner is the better. The right time or the right age for life cover is only a hypothetical term and it varies from one person to another. It depends on the individual’s income, financial circumstances, and the number of dependents in the family. If there are people dependent on the breadwinner of the family, then it is good to procure life insurance to render financial security for the dependents.
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The Right Age to Purchase Life Insurance
Choosing to buy a life insurance plan depends on two major factors, namely age and health condition. These factors also play a major role in determining the price of premiums and insurance eligibility.
When people adopt insurance at a younger age, the policy will be highly affordable, as the insurer is taking very less risk to insure a young person who is in good health. The right age to adopt life insurance is when the person is in their 20’s as it helps with financial aid for the dependents in the event of the person’s death.
When a person crosses 30 years of age, then life insurance becomes very much important as the number of dependents will also increase. In the event of the insured’s demise, the family can handle several financial problems and also raise children without many hurdles.
Taking life insurance after 40 years of age can be a costly affair as the premiums will be higher. But it is important to take life insurance at least at this age, as it can serve as an expert financial cushion for children and spouse. Middle-aged people who have crossed 50 years of age can still take life insurance for the same reason. Having some form of financial cover for the family is better than not having anything at all.
Why Is Younger Better with Life Insurance Procurement?
Some good reasons to adopt life insurance at an early age are as follows:
- It is good to purchase life insurance at a young age, as the premiums will be lower.
- With advancing age, there are chances to develop health issues, which can make the insurance very expensive
- At times even insurance can be denied considering the quantum of ailments.
- Yet another great reason to buy it sooner is to cut the cost, as they are becoming expensive with each passing year.
- It is possible to save more on tax by adopting life insurance at an early age, as the insurance premiums are exempt from tax under Section 80C.
We can see that forgoing insurance at an early age can only turn out to be costly in the future. With a delay of every single year, the premium amount will only be increasing. Also, delaying to buy life insurance can have a great impact on the intention of buying the policy itself, as people can enter into other commitments like a car loan, house loan, etc., forgoing the trivial life insurance.
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