Insurance provides a financial protection to your dependents in case of your unfortunate demise. Getting insured lets you take better control of your life. Insurance planning is imperative for all ages. Here’s a detailed age wise analysis justifying why it’s always a good idea to get insured, no matter how old you are.
The usual questions of a guy in his 20s are where to study, which car to buy, how to impress women or at best how not to run out of money. Why on earth would he ask whether or not to get a life insurance? Most of individuals in their 20s think that they don’t need life insurance as it’s too early to get insured and they don’t have any dependents yet. These notions are absolutely wrong. It’s never too early to get insured.
There are merits of buying a life insurance plan in your 20s.
You get to enjoy the low premium rates
The earlier you start, the better corpus you will cache through the policy term
You can experiment with higher risk forms of investment
Starting a retirement plan becomes all the more important in 20s as your appetite for savings at this age will set up a foundation for the savings habit you’ll develop for all the years to come.
We hope we changed your misbelief that those who are in 20s do not need insurance. Now if you are all geared to buy one for yourself, might we mention a few things to look out for.
At this age you should prefer term plans rather than whole life policies
You should opt for a flexible plan which allows you to make changes in the mode or coverage of the plan
You should prefer a policy that comes with waiver of premium rider
Consisting primarily of newlyweds and families with young kids, 30s is the favorite age group of insurance marketeers. 30s is the time for an individual when his own personal needs take a back seat, giving way to the family concerns such as financial security of your family, future planning for their children and so forth.
30s is an ideal age bracket to get insured as an individual is free of the financial obligations that comes with the subsequent ages.
You get a tenure long enough to create a decent nest egg for your future. Needless to say, the money tends to multiply in bigger proportions over a long term because of the effects of compounding and the averaging of lows and highs.
When you invest early, no matter how bad the market turns and tumbles, you end up getting more at the end of the policy term. Individuals in this age group should go for a plain Term Plan or alternatively a Money Back Plan, which is also a variant of Term Plans. The latter suits those investors who prefer getting returns at periodic intervals so as to meet their immediate financial needs. Those who are keen on getting their children the best education should opt for Child Plans.
This is the time when the bell rings for most of us and we start feeling the real need of getting insured. At this age, even those people who are reluctant to buy insurance change their minds. As per the statistics, those in 40s comprise the largest fraction of life insured. And for the right reasons, they are after all the core earning member of the family with spouse and dependent parents. The children are still growing and would take a little while to get on their feet.
The only catch to getting insured in 40s is that an individual is more burdened than ever as he is stretched between children’s educational expenses and parents’ medical expenses. Experts advise that in this age, you should take a plain term plan and in case you are looking to buy an insurance-cum-investment plan, than better focus on debt oriented funds.
40s is perhaps the best time to start planning for retirement as you have enough time at your disposal enabling you to collect a substantial corpus at your retirement age.
Here comes the 50s, your children are financially independent, the living costs are low and life is slow and easy. All in all, you have no dependents to worry about. Naturally, the question pops up, why get insured now? Well, because you might still have outstanding debts and mortgages. You wouldn’t want your spouse to take care of those financial responsibilities after your demise. Would you?
If this grim fact finally wakes you up to the need of getting insured, it is best to buy a retirement plan rather than a vanilla term plan at this age. Starting with a retirement plan at this point will help you attain a sound corpus till the point you get retired. However, if you still choose to procrastinate, you might have to witness your daily expenses slowly eat out your life savings at the time of your retirement.
As soon as an individual touches 60s, he begins to get bugged by ‘it’s too late to get insured’ syndrome. But just like it’s never too early to get insured, it’s never too late to get insured. So if you still haven’t bought a life plan, you better do it now.
Moreover, the goal of insurance is not just financially securing your loved ones but also to make up for the lost income as well as to pay off your outstanding loans if any.
The glitch to getting insured at this age is that you have to incur a higher premium. The reason is obvious; individuals in their 60s are more likely to get affected by illness and hence more likely to make a claim.
But if you care to make a search online, you’ll find many insurers who will be ready to offer old aged individuals right coverage at a right price.
70s and Beyond
Life takes a full circle. When one enters his 70s, he again starts pondering whether he really needs life insurance or not?
The fact, that most of the insurers have set the upper cap on the entry age at 65 years, discourages such individuals even more. As you cross even your 70s, it becomes more and more difficult to get a decent insurance cover or even to get the existing policy renewed. Earlier, most of the insurers set the upper cap of the renewability age at 75 years. Thanks god IRDA intervened and made it mandatory for the insurers to offer lifelong renewability feature. But to buy a new plan for this age group is still nothing less than a herculean task. Even the available plans come at a higher premium and a lower coverage. In such a scenario, the best way is to find a policy online. The online platform offers a much wider plethora of options than you can ever expect to get by visiting insurance offices or through agents.