We work hard throughout our lives to provide a financially secure future to our loved ones. But who is to say how long we’ll live to protect them? While we don’t like to think about death, it is one of the biggest realities of life. It is essential to ensure that the financial needs of our loved ones are taken care of even in our absence.
A feature-packed life insurance policy with adequate life cover can help build this safety net for our families. But what is the right age to purchase life insurance? What are the reasons that make life insurance a must for everyone?
When Should You Purchase Life Insurance?
It is generally recommended that one should consider purchasing life insurance as early in life as possible. When you are young and healthy, you are not viewed as a liability by the insurer. As a result, the insurance premiums are low when you are young. The premiums will rise as you age, and the risk of insuring your life increases for the insurer.
So, the younger you are, the earlier you can start building the financial safety net for your family, and the cheaper would be the insurance premiums.
Why Should You Purchase Life Insurance?
Here are some of the top reasons why life insurance is an absolute must –
- Financial Security
As discussed above, the biggest reason to invest in a life insurance policy is to offer financial security to your loved ones in your absence. Be it repaying loans, child’s higher education or marriage, or managing the basic expenses, the life cover offered by the insurer to the policy nominee can help your family in many different ways so that they can live a financially independent life.
- Generate Wealth
There are insurance plans like Unit Linked Insurance Plan (ULIP) that combine life insurance with investment. A part of the ULIP premium is invested in a fund chosen by the policyholder to generate handsome returns in the long run. One can also consider endowment plans where the policyholder receives maturity benefits on surviving the policy tenure.
- Add-Ons for Extra Protection
Many of the top insurers also offer add-ons with their life insurance policies. These add-ons help expand the scope of your insurance plan. For instance, you can consider the accidental death benefit rider for added benefit in case of accidental death. Similarly, there are other riders like permanent disability and critical illness for additional protection against severe life events.
- Tax Benefits
Life insurance is also a highly tax-efficient investment. Under Section 80C of the IT Act, premiums of up to Rs. 1.5 lakh paid towards a life insurance policy in a financial year are eligible for tax deductions under Section 80C. In many cases, even the maturity proceeds from a life insurance policy are tax-free.
Ready to Purchase Life Insurance?
Purchasing life insurance is one of the most important steps you can take to safeguard the financial future of your loved ones. With innovative offerings like ULIPs, term plans, and endowment plans, you can now choose a life insurance plan that best meets your long-term objectives.
Look for a reputed insurer and browse through their life insurance products to purchase a feature-packed and affordable policy at the earliest.