Why a 10-Year Delay In Buying Life Insurance Is Not A Good Idea?
Published On May 13, 2021 2:00 PM By InsuranceDekho
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Life insurance is a surefire way of ensuring financial stability and savings for later on in life. It has several advantages over other forms of investments such as tax deduction, ease of getting loans etc. However, more often than not, it is considered something to do when one is significantly older.
4 Main Reasons Why You Should Delay Purchasing A Life Insurance Plan
Here are some reasons why a 10-year delay in buying life insurance is not a good idea.
Time is Money
The longer you invest in your life insurance plan, the higher will be your returns. Therefore, the earlier you start saving, the more you will have time to save up to your target amount. A delay of 10-years, which is a significant period of time, may result in you having to pay larger sums to meet your target savings or simply not meeting them, which can again hamper your plans about financial stability and support.
The Price Increases as you Grow Older
Delaying a term plan purchase by 10 years, on an average, cost 45 per cent higher for a 25-year-old and 70% higher for a 35-year-old. The older you get, the pricier is the premium. Why pay more when you can start with a smaller sum earlier? Even if your income is small, you can start saving little by little, which is still more beneficial than having to pay exorbitant amounts later for your life insurance premium.
Effects of Inflation
The world is moving at an immense speed and inflation is imminent. The value for the same amount of money might be much lesser in the future than it is now. It is better to start investing as soon as possible to save up a significant amount of money. Lifestyle habits are also changing. What you think to be an adequate amount might seem insignificant later on, which is why it is again, better not to delay in getting life insurance.
Possibilities of Diseases and Accidents
Mishaps are always sudden. The older you grow the chances for getting into accidents as well as for acquiring illnesses and diseases, grow. The sooner you start to invest, the more security you get in the form of additional riders and benefits on your basic life insurance plan. Not only does it help you prepare for the distant future, but also effectively helps you live day-to-day stress-free. Illnesses can also hamper your chances of getting insurance as well as end up in you having to pay higher premiums.
As evident from the above factors, a 10-year delay in getting your life insurance plan can severely put you at a disadvantage. The sooner you start with your plan, the more are the benefits you will receive. Your responsible actions today will make your future brighter and more secure.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.