Life insurance is a crucial part of financial planning, providing security for your loved ones in case of unexpected events. Many people delay purchasing coverage because they find it difficult to think about what happens after they pass away. However, securing a policy early can offer significant benefits, including lower premiums and long-term financial stability.
If you do not yet have a policy, it is never too late to explore your options. Many individuals consider purchasing coverage when they reach important life milestones, such as marriage, parenthood, or homeownership. These moments often bring new financial responsibilities, making it essential to ensure that dependents and family members are protected.
● Life insurance provides financial protection for dependents in the event of an unexpected death.
● Major life events such as getting married, having children, or buying a home increase the need for coverage.
● Purchasing a policy while young can lead to lower premiums.
Choosing the right type of life insurance depends on personal financial goals and circumstances.
The cost of life insurance depends on various factors, including age, health, lifestyle, and occupation. Generally, purchasing coverage at a younger age is more affordable because insurers consider younger applicants to be at lower risk. Waiting too long may lead to higher premiums or difficulty qualifying due to medical conditions.
Some types of policies, such as permanent ones, include a savings plan. These policies build cash value over time, which policyholders can access while still alive. This feature makes permanent policies a useful financial tool for long-term financial goals and investment planning.
Marriage often brings shared financial responsibilities, making life insurance an important consideration. If you and your spouse depend on each other’s income, coverage ensures financial stability in the event of an untimely death. The death benefit can help cover expenses such as mortgage payments, debts, and daily living costs.
A common recommendation is to purchase coverage worth at least ten times your annual income. This helps provide enough financial support for your spouse to maintain their standard of living.
Becoming a parent brings greater financial responsibilities, making life insurance an important consideration. It helps ensure financial protection for children, who rely on their parents for support, by providing a safety net in case of an unforeseen event. Some parents explore purchasing an insurance policy for their children; however, financial experts often recommend prioritising coverage for parents first. While child policies may be available at lower premiums, they generally offer limited benefits. Ensuring adequate financial protection for parents is essential, as they are primary earners and caregivers.
Owning a home is a significant financial commitment. Mortgage payments, maintenance costs, and other home-related expenses can become a burden for surviving family members if a primary income earner passes away. A life insurance policy can help cover these costs, ensuring that your family remains financially stable.
As individuals grow older, a policy can support retirement and estate planning. Some policies help cover final expenses, while others provide a financial legacy for beneficiaries. Purchasing coverage early allows policyholders to lock in lower premiums and build long-term savings through a savings plan.
Additionally, some people take out policies for elderly relatives. This ensures that funeral costs and medical bills are covered without placing financial strain on surviving family members.
When purchasing a policy, selecting the right type is crucial. The two main options are term coverage and permanent coverage.
Term coverage provides protection for a specific period, such as 10, 20, or 30 years. If the policyholder passes away within this term, beneficiaries receive a death benefit. If the policy expires before death, coverage ends unless renewed.
Many term policies offer the option of renewability or conversion into a permanent plan without requiring a medical exam. This flexibility can be beneficial as financial needs change over time.
Term insurance policies are often chosen for their affordability, making them a practical option for families needing coverage during critical financial years, such as raising children or paying off a mortgage.
Permanent coverage provides lifelong protection and includes a savings component This type of policy accumulates cash value, which can be borrowed against or withdrawn for various financial needs, such as education expenses or retirement planning.
One advantage of purchasing permanent coverage at a younger age is that it locks in lower premiums for life. Some permanent policies also offer investment benefits, such as dividend payouts or tax advantages.
Several variations of permanent coverage exist, including whole life, universal life, and variable life insurance. Each option has unique benefits, allowing policyholders to customize their coverage based on financial goals and risk tolerance.
A savings plan is a vital component of financial security, providing protection for loved ones in the event of an untimely passing. Purchasing a policy while young can lead to lower premiums and long-term benefits, especially if it includes a savings plan. However, if you have not yet secured coverage, it is never too late to explore your options.
Major life milestones, such as marriage, having children, and homeownership, often increase the need for coverage. Choosing between term and permanent coverage depends on financial goals and the level of protection needed.
Regularly reviewing and updating your policy ensures that it continues to meet your needs as your financial situation evolves. By making informed decisions, you can provide long-term financial security for your loved ones and ensure peace of mind for the future.
Disclaimer: *T&C Apply – Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third-party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Life Insurance Corporation of India (LIC),Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Company Limited, HDFC ERGO General Insurance Company, TATA AIG General Insurance Company Limited, ICICI Lombard General Insurance Company Limited, New India Assurance Limited, Chola MS General Insurance Company Limited, Zurich Kotak General Insurance Company Limited , Star Health & Allied Insurance Company Limited, Care Health Insurance Company Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and Manipal Cigna Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer’s website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. URN No. BFL/Advt./23-24/626
