Life insurance is the safest and best way to protect your family or dependents after your demise. Death of any living being is the eternal truth and no one can escape from this. Sometimes it may be delayed but can never be denied. Death of any of the members of the family brings the other members of the family in a situation when they are emotionally broken. If the person who has passed away is the breadwinner of the family, the situation may be worse as the rest of the members will be financially broken too. Considering those facts, buying a life insurance has become the high priority of the earning members of the family.
A life insurance can be bought at any age. Many people are in support of buying a life insurance at an early age. The benefit of buying a life insurance at an early age is that the premium amount will be lower. If you haven’t yet bought a life insurance and planning to buy one then read this factors that one should consider while buying a term insurance at a specific age.
Life Insurance at 20’s
This is the age when most of the people started earning. Most of them are debt free whereas some of them may have a student loan. The lesser financial liabilities are granted for most of the youths at this age. They are free from the responsibilities of the family too. So it is best to start a life insurance policy at this stage only. Moreover, if you buy a term insurance at this age, the premiums will be the lowest. Hence this age is considered the best age to start a life insurance policy.
Life Insurance at 30’s
Most of the individuals at 30’s tend to increase the monthly income as well as increases the responsibilities. Most of them have family and kids. Along with the personal responsibilities, most of us add financial responsibilities too such as home loan, car loan, personal loan and credit cards etc. If you buy an insurance at this age, your premiums will be more than that of the 20’s premium but surely less than 40’s premium. As you have a bucket of responsibilities and there are dependents of yours, you must own the life insurance at any cost.
Life Insurance at 40’s
By the mid of 40’s most of your long-term financial liabilities like a home loan or car loan is paid off. But you are to fund your child’s higher education and have to be serious about the retirement plantings. It is advisable to opt for an insurance plan that covers higher financial responsibilities. Your premium for the insurance may go high but it has become the high time to buy an insurance policy. The cover amount must be of a high amount as your responsibilities are increasing along with your increasing age. With a general calculation, if you are 48 years old and want a cover of Rs. 2 cores, your yearly premium will somewhere near Rs. 37,000.
Life Insurance at 50’s
By the age of 50’s, most of us are free from all kind of debts. Only a few employment years are left in our hand. Our children are no more financially dependent on us as by this time they must have started earning. By this age some of the person’s fall sick with some serious diseases or lifestyle diseases. Your expenditures may further increase if your spouse is dependent on you. If you take a term insurance at this age, your premiums will be much more than the one which we had to pay at your 20’s. At this stage of life, one has to compare life insurance plans carefully before you opt for any. The best life insurance plant at 50’s will be an endowment as it will give you a lump sum amount on maturity.
Life Insurance at 60’s
Buying a life insurance at 60’s is not only costly but most of the insurers may decline your application. At this age, you will be a retired person with most of the times with no regular income. There are only a few companies, who can offer you at this age. But not to forget the fact that your premiums are going to be very high. It is best to buy a money back insurance policy at the mid of 50’s so that not only you will have a life coverage at this stage, you will be gaining a part of your sum assured at regular intervals. Getting liquid fund at regular intervals can be considered a source of income at your retirement life.
Buying a life insurance policy at any age is an appreciable financial decision. But buying it early gives you more benefits as you are to pay less to buy life insurance. Additionally, a life insurance is a great tool to avail tax benefit under section 80C and 10D. So whatever your age may be, make sure to buy a life insurance at your earliest as postponing your life insurance buying will make you pay more in premiums.
