Yes, there is a right time to buy life insurance. Over the years, insurance experts have zeroed in on a simple rule of thumb:
The right time to buy life insurance is when there is a dependency on your income
Let’s run through a few common examples:
- If you are above 30 with a wife and a young kid(s), you NEED to havelife insurance to take care of your wife and kid’s future in both your absence and presence. In such a case, having a term plan and child plan is a must!
- If you are below 30 and single with a financial loan(s) and parents to take care of, you NEED to have life insurance so that even in your absence your loan(s) can be paid off and your parents are supported financially.In such a case, having a term plan would be wise.
- If you are between 25 and 30 and single with no liabilities or dependencies, thenyou NEED NOT have life insurance, but since you do not have any liabilities, you can think of equity (moderate- to high-risk) investments that will help you build a corpus faster. Unit Linked Insurance Plans (ULIPs) are a good option because they give returns just as high as mutual funds but with many more benefits like lower fund-management charges, tax benefits, and life cover, among others.
- If you are above 50 and coming close to retirement, then you NEED to have life insurance thatpays out monthly income during your retirement so that you do not have to be dependent on anyone.
It is important to understand that getting covered by life insurance must be a well-thought-out, well-calculated decision, so choose your plan(s) wisely, keeping in mind changing life stages. In case of queries, feel free to write to us at firstname.lastname@example.org or call 86559-86559.
Since there has been a lot of focus on term plans in this piece, let’s quickly see the three most important things to consider when buying a term insurance plan:
- Is it covering your immediate loans and liabilities?
- Is it covering your children’s primary and higher education?
- Is it covering your household expenses like monthly bill of groceries, maid servants, driver, petrol, and so on?
Your term plan’s sum assured needs to cover the mentioned expenses. If it is doing so, you can relax – you are adequately covered. It’s really that simple!