When is the Right Time to Buy Life Insurance?
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The life insurance policies serve as a safety net for the family of the insured, at the time of their unfortunate death or disability. The insured amount will be of great help to fund the expenses of the dependents, and it is pertinent to buy life insurance as soon as one starts to have dependents.
But the right time to buy life insurance is the early ’20s as it instills a sense of discipline in the young people to pay out premiums at definite intervals. Also, the premiums of the policies, when bought at a young age are considerably low and affordable. Also, it can help them with tax benefits as well.
When is the Right Time to Buy Life Insurance?
It is important to choose a life insurance plan wisely and people who are up to the age of 40 years should have life cover that is equivalent to at least 15 times their annual income. The earlier the policy is adopted, the better it is as the premiums will be lower and there will not be a necessity to take any medical tests at the time of adopting the policy.
With age, people can acquire lifestyle diseases such as diabetes and the premiums of the policy will also increase many folds. Thus, by all means, acquiring a life insurance policy in the middle ’20s is the best option.
Reasons to Purchase Life Insurance at an Early Age
Apart from benefitting the dependents through financial stability, there are several other reasons to purchase life insurance at an early age.
1. Covers the Debts
Irrespective of whether one is married and has dependents or not, securing life insurance can help cover the debts. A credible life insurance policy will help pay for outstanding loans and not levy unnecessary burden on the family members upon the unexpected demise of the insured.
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2. It Replaces the Income of the Insured
The majority of the present-day families have dual incomes. The death of one of the partners can have a serious impact on the smooth running of the family. But with life insurance, the spouse will be able to maintain the standard of living of the family and get the children settled in a prospective position.
3. The Cost of Waiting Can Be Huge
The longer one waits to purchase a life insurance policy, the greater are their chances of developing a terminal health condition such as hypertension, obesity, and even cancers. Life insurance can be denied in such instances, leaving the person and the family in serious financial insecurities. Thus, it is always a good idea to lock the policy when one is still young and healthy.
4. Insurance at an Early Age is Affordable
Young people do not have many loans and debts to pay, and thus it is always affordable for them to pay for the insurance easily. But they should compare the different life insurance options available and choose the best plan that will benefit them for a lifetime.
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Bottom Line
Life insurance is the only tool to offer protection and financial stability to loved ones upon the death of the insured. Purchasing a simple and inexpensive term policy will always be the best bet for young policyholders.
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.
