Sure, life insurance is a popular investment product in India and almost every individual opts for it. But many seem to realise to invest in one a little later in life. This mostly happens because many at a young age feel life insurance can be invested in later. Once they arrive at the stage where a life insurance policy seems indispensable, the premiums for it are too high to pay. Hence, it is important to know when the right time to invest in an insurance policy is. Here are some pointers on this –
When you start earning or working –
It is important to start saving from the time you get your first salary. This puts you in the right and fruitful habit of saving regularly; and what better investment option that a life insurance policy. Investing in a life insurance at a young age is the best thing. This is because younger people get better life insurance premiums. This means longer coverage and lesser premiums. At a young age you are less likely to have any health problems; so, covering your life involves less risk. Also, you would need to have an insurance policy later in life, why not now.
When you get married –
The responsibilities of an individual tend to change after marriage. Your financial liabilities increase as you have dependents to support. In order to secure the future of yourself and your partner it is best to buy a life insurance now, if you haven’t bought one earlier. Also, mishaps can happen anytime, support your partner with a sound financial backing in case of an eventuality. In case you already have a life insurance policy, consider revising the amount to support your new life.
When you buy a home –
In case you did not buy a life insurance when you got married, the next best opportunity for you to buy it is when you purchase your first home. This becomes all the more important if you’ve bought your home with a home loan. As the bread winner of the family it is important that you make arrangements for all important liabilities to be paid even in your absence. In case of an eventuality, paying of the home loan would be a huge problem for your family. A life insurance policy helps to take care of the crisis.
When you start a family –
This is the time when most of the people consider taking a life insurance policy. Around this time your financial obligations increase as you have more dependents on you. With the baby coming in you are also responsible for its secured future. It would be difficult for the family to handle such financial liabilities in case something happens to you.
Actually, a life insurance can be bought whenever the realisation dawns up on you. But remember the age factor plays a major role in deciding the premium amount. So, it is better to invest in one at an early age.
When is the right time to buy a life insurance policy