Insurance is not an interesting topic of discussion when you are young and have just joined employment.When you have no responsibilities of a family, children’s education or dependents, you might not feel the need to start a life insurance policy.
But, today more and more young people, as early as in their 20’s, are looking to invest in insurance. It has become a part of the savings portfolio for young people. When you start life insurance early, you save on the premium amount, and also on taxes. Any financial advisor will tell you to plan early for your retirement.
The old trend of investing in life insurance when you are in your 30’s is no longer applicable or advisable. With changing lifestyles and habits, younger people are dealing with chronic health conditions. It provides financial security at the time of an unexpected tragedy.
The reasons for starting Life Insurance early are:
Insurance premiums are low when you are young- Numerous factors contribute towards determining the amount of premium to be paid. If you buy an insurance policy at a young age, you will be paying a far lesser amount in premiums than at a later age. The reason for this is that the negative risk factors are lower as most young people are healthy and health issues arise only at a much later age.
The maximum payout for an insurance company is when they have to pay at the death of an applicant, in case of life policies,insurance companies spread the premium amount in such a way that you pay the same amount for the tenure of the policy instead of paying less when you are younger and more as you grow older. But when you start young, the same policy will come at a lower price because you will be paying less, but for a more extended period.
Only a basic check-up is required to take an insurance policy which varies from age & sum assured desired.. Insurance companies do not insist on a thorough health check-up when you are young and healthy, but they expect you do a complete health check if you are older. The policy terms and package will change depending on your health condition.
Helps you save taxes- If you hold insurance and are paying a premium for it, you are eligible for tax benefits. Under Section 80C of the Income Tax Act, premiums paid for life insurance qualify for tax deduction.
The conditions for claiming tax deductions are: –
- Only Individuals/HUF can claim the benefits even if the person is a non-resident
- The policy can be in the name of an individual, spouse, and children
- The maximum amount under this section is ₹1,50,000/-
- In case the policyholder surrenders the policy before the prescribed amount of time, the tax deduction can be reversed
Acts as a source of income for your family- If you have dependents, be it your parents, spouse, children or siblings, an insurance policy acts as a safety net in case of a tragedy. It provides them with financial security when it is most needed. At the time of crisis, life insurance replaces the income of the breadwinner.
When you take a life insurance policy at an early age, you are not only securing your future but are also securing the future of your loved ones. To opt for an affordable life insurance policy, one can visit the Payworld outlet.
You can also become an Insurance POS with Payworld & offer Life, Health & General insurance to your customers under one roof. Visit http://bit.ly/PW-IPOS to register now.
*Insurance is the subject matter of solicitation.
**Sugal & Damani Utility Services Pvt. Ltd. is a Registered Composite Corporate Agent with License no.CA-0171.