Securing the future of your family may be one of your biggest concerns. Irrespective of your age and your profession, it is essential for you to work for the well-being and security of your family. Saving money is not enough to secure your family financially, you must also consider having a life insurance policy in place. Life insurance offers financial protection to your family members in the event of your untimely demise. Although it is advisable to buy life insurance early in your life, there is no right age for it. If you haven’t bought life insurance to date, now is likely the best time to buy it, no matter what stage of life you are in.
Life Insurance in your 20s
You just start living and exploring your life when you reach your 20s. Usually, you do not have any dependents yet and thus you might think that it's too early for you to buy life insurance. Life insurance may not be the immediate need for you in your 20s but getting life insurance early in your life has its own advantages. These are as follows:
- The younger you are, the lower the premiums you will have to pay.
- The earlier you start paying your life insurance premiums, the better the coverage and policy terms you can enjoy.
- At an early age, as you have more appetite for risk, you can experiment with higher-risk forms of investments.
Therefore, it's never too early to have life insurance. You should start your retirement planning from an early age and buying life insurance should form part of this plan. If you wish to have life insurance from an early age you should keep the following points in your mind:
- As you will be buying life insurance early in your life, a need may arise in the future requiring changes in the mode and the coverage of the plan. Thus, you should always opt for a flexible insurance plan.
- It is advisable to opt for life insurance with maturity benefits and you may also choose term plans with maturity benefits rather than whole life policies.
- It is recommended to choose a policy that comes with a waiver of the premium rider.
Life Insurance in your 30s
Generally, this is the stage of life when you have your own family and have a secure source of income. This is the time when you are concerned about the financial security of your family and the future planning of your kids. The 30s is an ideal stage of life when you must consider having life insurance if you do not have one already. Having life insurance at this stage of your life allows you to have a long enough tenure to create a decent fund for your future. The effect of compounding also helps you to multiply your funds into bigger proportions. It is advised to go for a plain term plan or a money-back plan if you belong to this age bracket. There are other alternatives as well such as Saving & Investment Plans, Child Plans, ULIPs, etc. that you may opt for.
Life Insurance in your 40s
This is the stage of life when you are in the midst of some financially demanding years, with responsibilities such as children’s education, parental medical expenses, etc. At this stage, even the people who were reluctant to life insurance must seriously consider buying one. The 40s is also considered a good time to plan for your retirement. If you are buying life insurance in your 40s for the first time, it is advised that you subscribe to a plain term plan or an Insurance-cum-Investment plan, or a Retirement plan. People in their 40s comprise the largest fraction of the population buying life insurance as it is the time when you may have dependent parents, children, and spouse.
Life Insurance in your 50s
Generally, when you reach this stage of life, your children are financially independent, and your cost of living might also decline. You might not have anyone dependent on you financially. But still, life insurance is significant as you might have outstanding loans and mortgages and would not like to burden your spouse or children with them after your demise. New life insurance premiums cost more for older people, and you may have to settle for high premiums. At this age, you should opt for retirement plans rather other a vanilla term plan. A retirement plan will not only provide a safety net for your dependents but will also help you to attain a sound corpus when you retire.
Life Insurance in Your 60s & Above
At this point in your life, you might think of retiring. You may also think that it's too late to get insured now. But just like it's never too early to get insured, it is also never too late to get insured. You may have to pay higher premiums as at this age you become more prone to illness. The purpose of life insurance is not only to support your loved ones financially post your death but also to make up for your lost income and to pay off your liabilities. Hence, if you haven’t bought a life insurance plan till now, you better do it now. You may also find insurers offering old-aged insurance with the right coverage and at the right price.
Although IRDA has made it mandatory for the insurance companies to offer lifelong renewability features, it is still a difficult task to find a new plan for individuals above the age of 70. The available plans come with the highest premiums with the lowest coverage. You may go through the online platforms that offer wider options to find the insurance policy that suits your requirement.
You must always remember that although there is no right age to buy life insurance, age is one of the most significant factors for the calculation of the premiums. You must also remember that the earlier you buy life insurance the more tax you save as the premiums paid are exempt from tax under Section 80C of the IT Act, 1961. Life insurance is a mechanism through which we can secure the future of our loved ones after we are gone and thus, we should never shy away from it.