What is the right time to buy life insurance?
Insurance is essential, but the right time to buy life insurance varies from person to person. Generally, you need life insurance if your family is dependent on your income or a debt that you will carry during an emergency.
You may wonder when the best time to invest in an insurance policy is? The sooner, the better.
Let's take a glance at how a life insurance policy can offer financial protection to you at various stages in your life.
Being in your early 20s is the most fantastic experience where you can experiment and explore new things. It is a crucial phase in your life, and your decisions may influence your entire future. If buying life insurance isn't on your priority list, you can get a policy with a higher sum assured at the lowest premium.
As your responsibilities grow over the years, so does the amount of coverage offered. Buying a policy now assures that you are adequately prepared for what lies ahead.
On average, most people in this age are settled into their marital life. They also look towards fulfilling their financial goals and breakthroughs.
For instance, you might have taken a loan to buy your dream house. Since your financial liabilities are increasing by the number, this is a perfect moment to invest in a life insurance policy to safeguard your family during an emergency. Besides, the need to grow your wealth and prepare for the responsibilities ahead is also looming large. Choose an insurance plan which has different portfolio strategies and fund choices.
35- 45 years
This is one of the most precious timelines we live in. We have money for the present and for a few years ahead. However this is the time we also need to figure out the future insurances that help our families.
It is not too late to buy insurance now as you will give your loved ones a secure future. At this point, the best option would be an endowment plan. An endowment plan also allows you to grow your wealth while protecting your family's financial security.
Above 45 years
To have a steady income post retirement this is where we need to plan and opt for insurances that guarantee our family. The insurance plan is important to prepare for retired life and guarantee your spouse during an emergency.
It's best to choose an annuity plan as it will help you build a corpus specifically for retirement while also providing life cover, which can be the perfect solution.
From my personal experience, I would say the best time to buy insurance is NOW.
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