It is important you secure your life with a life insurance plan that ensures you and your family enjoys a healthy financial future. If you are in your 20s and have a dependent family, then investing in a life insurance policy at a young age can give you innumerable benefits. Read the below article to understand why you should be investing in life insurance at an early age.
Types of life insurance policies you can opt for: As per your budget and requirement, you can select from the below types of life insurance policies.
Low premium rates: One of the primary benefits of investing in life insurance at an early age is that you will have to pay fewer premiums. This is because when you are young, you are less likely to contract any life threatening illnesses. Hence, insurance companies are at low risk when insuring young individuals. For example: If you are a 26-year-old working female earning 5 lakh per year, having no smoking or drinking habits, then the premium you would have to pay for a cover of 90 lakh is Rs. 3, 549 for a term life cover. Whereas, if you are a 46-year old female earning 5 lakh per annum, having no smoking and drinking habits, then you would have to pay premium of Rs. 5, 345.
You can fulfill your short term goals easily: If you have a life insurance plan, you can always look to get a car loan, home loan, etc.by keeping the policy as a collateral against getting the loan. By doing this, you can always fulfill your short term goals without having to worry much.
Enjoy tax benefits: A life insurance policy acts as a good tool for helping you save on taxes. With investing in any life insurance policy, you can claim tax deduction of up to 1.5 lakh under section 80C of the Income Tax Act, 1961. Additionally, you can also get tax benefits on the returns under section 10(!0D) of the Income Tax. So if you are earning well and are looking to save on taxes, then investment in life insurance policy makes for a good choice.
Initially, though you might want to opt for a coverage of about 20-30 lakhs, but as you would get married and have kids in the future along with additional responsibilities and also keeping the inflation in mind, it is always a wise idea to opt for a wide coverage. In the future, you surely would not want to compromise on your current lifestyle. Ensure that underinsurance should never prevail in your life. Always opt for a wide coverage in your 20s to enjoy a healthy financial future."
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