Life has its own way of throwing the unexpected at you. Just when you think you have it all figured out, some unexpected development throws you off your game. This could be an unplanned expenditure, a medical emergency or even a job loss.
But a little planning can help you be at ease – why should these unexpected events hamper your progress?!
Buying insurance early in life has its own share of benefits and is the key to planning a secure future. Here are some reasons why you should buy insurance early.
1. Nothing is timed: You might have plans around crossing each milestone of your life at a certain time and pace. However, life may have a different idea. Let's understand this with an example. Arpita was only 4 years old when she lost her dad. But, thanks to her dad's insurance, Arpita could complete her education and even get an MBA degree abroad. Had he not taken an insurance out early in life, both Arpita and her mother would have struggled financially.
2. Peace of mind: Buying an insurance policy early puts your mind at peace because you know a lot of your responsibilities are taken care of. It can also help you increase your wealth or plan for a happy retired life, while staying protected at the same time.
3. Age and cost: Age, just isn't a number when it comes to buying insurance. For instance, Rohit , at age 45 had to pay Rs 8000 to buy an insurance plan worth Rs 5 lakh coverage. His younger brother aged 25 paid Rs 5000 for the same cover. This is because premium payments increase with age and health issues. After all, the chances of a younger person falling ill or passing away seem lower in comparison to an older person and insurance is all about calculating the risk appropriately.
4. Bring it all together : Here's a simple example : Rohan was 23 years old, in excellent health and single without any dependents when he purchased a term insurance policy with death benefit. He was not only able to pay his premiums timely for the complete term, but also availed cash benefits. Not to mention, his premium payments were lower. Would it have been as easy if Rohan bought the policy when he was 33, married with kids and had additional responsibilities? When you are young, things like your age, good health and lack of responsibilities often work in your favor and insurance is no exception.
So, it's always better to buy insurance early and plan wisely.
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