The purchase of life insurance depends on the financial and family circumstances which differ from person to person. Typically, a person buys life insurance because they are the breadwinner of the family, or have debt that may continue after their demise, and obviously they do not want their loved ones to suffer because of it. Had to suffer.
younger is better
Talking about life insurance, it is said that the younger you are when buying a policy, the better. Since the policyholder is young, they may qualify for lower premiums. When a person is older and has medical ailments, he may not even be eligible for insurance.
Ideal age to buy life insurance
As far as life insurance is concerned, the age and health of the individual is the most important part. When a person is young and has few or no medical problems, it significantly affects eligibility and premium costs. Therefore, the younger and healthier the individual, the cheaper the premium.
Experts say that a person should buy a policy as soon as he has dependents which can be parents, children, spouse etc. After that the process of buying the policy should not be delayed because the more you delay the process, the cost of the premium will increase with the passage of time.
Since insurance companies require you to undergo certain medical tests before awarding you a policy, when you are young it is a high probability that you are healthy and have little or no medical problems which will likely result in lower premiums. There is less person to claim.
Read more: How much life insurance cover do I need?
For example, if you buy life insurance at the age of 30 and you do not smoke and the claim is considered 1 crore till the age of 60 years then the policyholder has to pay premium only 8,000 but if the same person buys the policy at the age of 35, then the premium will be up to 11,000
Even if life insurance. Offers tax deduction up to 1.5 lakh paid in lieu of premium under section 80C of the Income Tax Act. However, this should not be a reason for the policyholder to buy life insurance as it is meant to cover your finances after death, save money and take tax deductions when a person joins other government schemes like Public Provident Fund (PPF) could. ,
20 year olds
When a person is in their 20s, health problems and death seem like a distant topic. But as life is uncertain, taking life insurance in early 20s is always beneficial as individuals do not have much responsibility at this time, and the premiums offered by insurance companies are low.
Usually the premium charged by young adults ranges between Rs. 1,400 – Rs. 1,750, which is significantly less than other age groups. The main question that arises is which life insurance to choose – term life insurance or permanent life insurance.
term life insurance As the name suggests, life insurance provides coverage for a specific period. It is to be noted that the renewal of policies after 10-20 years is quite expensive, hence term life insurance where the rates are fixed is a much better option. Many insurance companies allow policyholders to convert their term life insurance to permanent life insurance, so the policyholder can do so when they are able to pay higher premiums.
Read more: How to file life insurance claim?
permanent life insurance Special life insurance provides lifelong coverage to the policyholder, except when the individual stops paying premiums, in which case the policy terminates. The policy also comes with a cash value, which can act as a savings for the policyholder in the long run.
As it is known that life insurance and its coverage depends on various factors like drug use, medical history, age, lifestyle, income etc. So it is always better to get the policy as early in life as possible, because The coverage provided is good and the premium rates for the same are low.
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