Importance of Life Insurance
Updated On Jun 14, 2021
Table of Contents
Life insurance promises to provide life cover to the policyholder, in case the life assured passes away the sum assured amount is provided to the nominee or the family of the life assured so that they are financially independent even in the life assured absence. Basically life insurance can act as a shield from any unforeseen event so it is important to have life insurance at every stage of your life because life insurance provides you and your family financial protection.
Importance of Life Insurance for Young Adults
A study shows that 80-90% of the youngsters (18-25 years) in India think that they are too young to purchase a life insurance policy and they do not require to invest their money in a life insurance policy. Mostly the youngsters depend financially on their parents so that it is unnecessary to purchase life insurance. However, it is advised that youngsters purchase a life insurance policy as soon as they receive their first income because as a youngster you can avail the benefit of purchasing a life insurance plan with a high sum assured amount at nominal premium rates. This is because young people have better health and are considered people with low risk.
Importance of Life Insurance for People Between Late 20’s and Early 30’s
At the age of 25 - 35 years is an ideal time to start financially planning because at this stage you will be settled in your career, have a family to take care of you, maybe even have liabilities such as a home loan, loans, credit card dues etc. As your liabilities increase, the need for a life insurance policy also increases because life insurance can help you plan a financially secured future. You can choose to opt for term insurance or money-back plans that ensure your family is provided with regular payouts to maintain their daily lifestyle.
Importance of Life Insurance for Middle Aged People
From 35 to 50 years of age your family will expand, you may have a child to look after and the number of dependents in your family will increase. This life insurance is a must to have. If you are considering purchasing a life insurance policy at this age you might as well consider a Unit-Linked insurance plan because this type of life insurance plan serves the dual purpose of life cover and also lets you invest in different investment tools. You can choose to opt for this plan at this stage because the family member number increases and so does the expense and this plan can be beneficial for you and your family.
Importance of Life Insurance for Retirement
Your retirement and post retirement time period is very crucial and you must make sure that you are no burden on anybody. It is the time when you are 50 years and above and start planning for your financially secured life even after retirement. Sudden stop of income may put your family in trouble. You wouldn't want anybody to pay your expenses. If you want to purchase life insurance at this stage of your life you can choose a senior citizen term insurance plan where you will be offered life cover and you can use the money from the term insurance to pay your dues, this will help you ensure that you don’t become a burden on anybody.
Even though you can purchase life insurance any time you want , life insurance is important at every stage of your life because you may never know what could happen. You can choose to invest your money in different types of life insurance policies to keep yourself covered but to make sure that your family members are not financially bothered even in your absence.
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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.