Skip to main content

Getting Insured at young age Saves a lot of money



How many of you have received a call from an insurance company or an agent trying to sell you a policy? I am sure that every professional in their 20s or early 30s would have received such a call. But have you ever stopped and thought whether you have adequate insurance cover, especially if you are a young working professional with financial liabilities? In most cases, I would assume the answer is a big 'No'. Insurance in the early years of professional life may sound a waste of money when other lifestyle and personal expenses take priority.

Young professionals today, anywhere in their 20s or early 30s, are financially independent. Many manage their own finances and investments like paying off education loans, buying own cars and investing in property – mostly first homes. The last decade has also seen a major shift in the lifestyle of young professionals with more working hours, higher stress levels and an alarming rise of related lifestyle diseases like diabetes, obesity and cholesterol. In such a scenario, insuring oneself becomes as essential as other expenses.


Additionally, many of these young people provide financial support to their families, either partially or totally. In such a scenario, life insurance as well as health insurance is absolutely critical so that in case of any unfortunate event like an accident or a sudden demise, the family doesn't go through a financial trauma as well. Even if one is not contributing towards family income, a health cover or a rider is a must so that in time of need, the cost of treatment is covered and the family doesn't face a financial setback.


There are various insurance options young professionals can choose from, depending on their needs. From retirement, health to pure protection — there is an insurance cover for all of these. It is advisable to invest earlier than later in insurance products – for example, if you are investing for retirement, the earlier you begin investing, larger the corpus would be on maturity. Term insurance is pure insurance and is very cost-effective. A term plan, coupled with an additional health rider, can give you a 360-degree protection in any exigency. Many insurance companies have also launched online term insurance products that are cheaper and easier to buy. You can log on to any comparator site like policybazaar.com or apnainsurance.com and compare the rates of term plans offered by all the insurance companies.


Another reason why some of you do not buy insurance earlier in life is because your company (in most cases) covers you under a group life and health plan. The key thing to remember is that the group cover may not be sufficient in your case or aligned to your income. Secondly, when one is young and healthy, you are a better risk; hence, insurance companies can offer you a life cover at lower rates. If you apply for a personal life insurance later in life, your application may be rejected or you may end up paying higher premiums depending on your medical history.


Investing early in insurance will also help you save tax and instil in you the habit of saving and financial discipline that ensures peace of mind in the long run. So, if you are a young professional and have not insured yourself yet, the next time you come across any material on insurance or a call from an insurance company, hopefully you will give it a serious thought.

 

Popular posts from this blog

SBI Magnum Tax Gain Scheme 1993 Applcation Form

    https://sites.google.com/site/mutualfundapplications/tax-saving-mutual-funds-elss     Investment Details Basics Min Investment (Rs) 500 Subsequent Investment (Rs) 500 Min Withdrawal (Rs) -- Min Balance -- Pricing Method Forward Purchase Cut-off Time (hrs) 15 Redemption Cut-off Time (hrs) 15 Redemption Time (days) -- Lock-in 1095 days Cheque Writing -- Systematic Investment Plan SIP Yes Initial Investment (Rs) -- Additional Investment (Rs) 500 No of Cheques 12 Note Monthly investment of Rs 1000 for 6 months and quarterly investment of Rs 1500 for 4 quarters.

Birla Sun Life Tax Plan Online

Invest Birla Sun Life Tax Plan Online   An Open-ended Equity Linked Savings Scheme (ELSS) with the objective to achieve long-term growth of capital along with income tax relief for investment.   After a bad patch from 2008 to 2010, Birla Sun Life Tax Plan has made a big comeback in the last five years, with a particularly good run since 2014. The fund's rankings, which had slipped to two stars in 2011-12, recovered sharply to three-four stars in the last three years. The fund has delivered a particularly large outperformance over its benchmark and peers in the last couple of years. The fund's investment strategy focuses on a diversified and high-quality portfolio, with parameters such as capital ratios and balance-sheet strength used to judge quality. It uses a combination of top-down and bottom-up approaches to take sector/stock positions. The fund avoids highly leveraged plays. Staying more or less fully invested at all times, the fund parks roughly half of its portfoli

Should you Roll Over 1 year Fixed Maturity Plans?

The period between January and March typically sees an uptick in the launch of fixed maturity plans, or FMPs. Not this year. Instead, fund houses are busy rolling over or extending the tenure of their one- year FMPs launched last year to three years. Investors in one- year FMPs have a choice. Either redeem units or roll over to three years. If you exit now, your gains will be added to your income and taxed in line with your individual slab rate of 10, 20 or 30 per cent. If you stay invested for two more years, you pay 20 per cent tax with indexation benefit. Yields have softened in the past few months on expectations of a rate cut. If the central bank continues its soft monetary stance, yields are likely to fall further. In such a scenario, it makes sense for investors, particularly those in the 30 per cent tax bracket, to roll over their investments and lock in at a higher yield now. In a surprise move, the Reserve Bank of India cut repo rate by 25 basis

Mutual Fund Review: IDFC Premier Equity Fund

  IDFC Premier Equity Fund, which falls under the presumed high risk group of mid- and small-cap schemes, can rely on astute and timely equity picks. These make it less vulnerable to fluctuations compared with others in the category   IDFC Premier Equity Fund is designed to invest in upcoming, but promising businesses available at cheap valuations, and hold on to these businesses until they reap desired returns. The experiment has been successful so far, and IDFC Premier Equity has emerged as one of the top performing mutual fund schemes in the mid- and smallcap category of equity schemes.    While the scheme is an open-ended equity fund, i.e. open for subscriptions throughout the year, it has a unique philosophy to limit fresh inflows. Thus, while an investor can always take the systematic investment plan ( SIP ) route to invest in the scheme throughout the year, inflows through a lumpsum investment have been restricted. Since inception, IDFC Premier Equity has been opened for l

IDFC Premier Equity Fund dividend

  IDFC Mutual Fund   has announced dividend under the dividend option of   IDFC Premier Equity Fund Direct-D . The quantum of dividend shall be   R 4.3464 per unit.   The record date has been fixed as May 06, 2015. Best Tax Saver Mutual Funds or ELSS Mutual Funds for 2015 1. ICICI Prudential Tax Plan 2. Reliance Tax Saver (ELSS) Fund 3. HDFC TaxSaver 4. DSP BlackRock Tax Saver Fund 5. Religare Tax Plan 6. Franklin India TaxShield 7. Canara Robeco Equity Tax Saver 8. IDFC Tax Advantage (ELSS) Fund 9. Axis Tax Saver Fund 10. BNP Paribas Long Term Equity Fund You can invest Rs 1,50,000 and Save Tax under Section 80C by investing in Mutual Funds Invest in Tax Saver Mutual Funds Online - Invest Online Download Application Forms For further information contact Prajna Capital on 94 8300 8300 by leaving a missed call --------------------------------------------- Leave your comment with mail ID and we will answer them OR You can write to us at PrajnaCapital [at] Gmail [dot]
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now