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4 Reasons Why You Need Life Insurance in College

Updated On Jun 25, 2021

Due to many misconceptions like young people don't need life insurance, many people purchase it in their later life phase at high premiums or sometimes do not even get the opportunity to choose one. However, it is advisable to buy a life insurance policy as soon as possible to get low premium rates at high coverage. Moreover, the additional benefits help in securing your eventually dependent family during various scenarios. So, read on to know about some reasons to convince you to buy a life insurance policy in your college days only. 

4 Reasons Why You Need a Life Insurance Policy in College

Here are 4 reasons to persuade you to buy a life insurance policy in your college.

1.Security Against an Unfortunate Event

As human beings, we can not predict even the very next moment of our lives. Thus, purchasing a life insurance policy is the best way to ensure the financial safety of your loved ones in the face of an unforeseen event as the nominee or the beneficiary receives death benefits if the life assured dies within the policy duration. The amount will help in financially disburdening the already grieving family.

2. Handle Increasing Responsibilities

After college graduation, the responsibilities rise as you enter the corporate world or start earning income. Moreover, the lifestyle of your family also sees an upgrade. You may also plan on marrying and starting a family. Here, a life insurance policy bought at the time of fewer responsibilities like during college will help ensure the continuity of a comfortable lifestyle for your loved ones.

3. Higher Coverage at a Lower Premium Rate

The life assured gets higher coverage at a lower premium rate if he purchases life insurance in his/her life's early and healthy days. Hence, it is advisable to buy a life insurance policy as soon as you start earning a stable income or during your college.

4. Tax Benefits

One of the perks of purchasing a life insurance policy in college, even before you start earning any income, is to start saving taxes from your first salary. Tax benefits available under Section 80C of the Income Tax Act provide tax benefits on the policy's payable premium, and you can save up to Rs. 1.5 Lakh in a year. 

Takeaway

The reasons mentioned above should be enough to convince you to purchase the right insurance policy in your college days only. You can consult a financial advisor or an insurance agent who can help determine your distinct needs and evaluate the sum assured and policy duration. Moreover, it is advisable to read all the terms and conditions of different policies and make an informed financial decision after a detailed comparison.

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