In today’s time, when everything around us is so uncertain, it becomes important to take all the required actions to secure the future in advance. Buying an insurance plan is one of the most popular options that many people consider in order to secure their future in the best possible way. From life insurance to health insurance, there are different types of insurance products available. Out of all, life insurance is a popular insurance product that many people prefer investing in. However, many times people get confused about the right time to buy a life insurance plan. So, in the blog, let us discuss why you should have a life insurance plan in your 20s.
Why Buy Life Insurance in Your 20s?
Here are some of the reasons why you should invest in a life insurance plan in your 20s:
- Life is full of ups and downs, so it becomes crucial to plan for emergencies. As a rule, when you are in your 20s, you have lesser responsibilities and thus it becomes easier for you to invest your money in life insurance plans. When there are lesser liabilities, you need not think much before putting your hard-earned money into life insurance plans.
- When you buy a life insurance plan in your 20s, then there are chances that the premium incurred will also be less. This is because the chances of falling ill when you are young are fewer. This means that when you are young there is a lesser health risk and thus higher life expectancy, which eventually lowers the premium. However, on the other hand when you are buying a life insurance plan when you are in your 50s and have multiple health insurance issues, then the premium of life insurance will be higher.
- By buying a life insurance plan in your 20s, you will also get the advantage of getting protection for a longer period of time. The best part is that with a nominal premium, you can enjoy longer life insurance protection.
- You can also get tax benefits on life insurance plans as mentioned under section 80C of the Income Tax Act of 1961. So, it makes sense to invest in life insurance plans when you are in your 20s.
- If you are the only earning member of your family, it is advisable to invest in a life insurance plan when you are in your 20s. This is because a life insurance plan will provide your family with the necessary protection even in your absence and thus as the sole breadwinner of your family, you will be able to secure the future of your dependents.
Benefits of Buying Life Insurance Plans
Listed below are some of the benefits of buying life insurance plans:
- A life insurance plan provides life insurance coverage so that in case of the death of the policyholder, the nominees can get financial protection
- A life insurance plan also provides tax benefits as per the Income Tax Act of 1961
- A number of riders can be added to the life insurance plans to further enhance the benefits of life insurance plans
- With a life insurance plan, you can lead a stress-free life and stay assured that even in your absence, the financial needs of your family will not be compromised.
Take Away
Thus, if you are thinking about buying a life insurance plan, then it is advisable to do so when you are in your 20s. Buying a life insurance plan in your 20s, helps in getting life insurance protection at affordable premiums.