Importance Of Having A Life Insurance Cover At Different Stages


Nov 12, 2021

Do you really need life insurance? Find out!

According to one survey, over 36% of Indian families that get a life insurance policy chose a term plan. Almost 29% contemplate getting life insurance following major life events such as marriage or childbirth. A life insurance policy, on the other hand, is something you should have in your toolbox at all phases of life, whether you are single and just starting your first job or are ready to retire in a few years.

>Importance Of Having A Life Insurance Cover At Different Stages

18 to 25 years

Nearly 90% of young people in India do not even consider purchasing a life insurance policy because they assume they are too young to require one. Some people may reject it as a needless investment. This is primarily because people in this age group are in good health and have few or no financial responsibilities or dependents. However, experts advise that young people purchase a life insurance policy as soon as they receive their first paycheck. As a young person, you may obtain a policy with a bigger sum assured for a considerably cheaper premium than you would in your late 30s or early 40s. At this point, you may buy a flexible term plan that lets you enhance your coverage as your obligations grow.

25 to 35 years

You may have settled into your profession and even married at this point in your life, and as a result, your responsibilities have grown. You may also have financial obligations such as a home loan, a vehicle loan, or credit card debt. And, as your responsibilities grow, so does the value of solid life insurance coverage. This is also an excellent moment to begin preparing and constructing a financial safety net for your family’s long-term well-being. If you currently have a term plan or are purchasing your first policy, it is preferable to invest in a term plan that gives a monthly income. Consider obtaining a money-back plan so that your family receives a regular payout to satisfy their financial requirements even if you are not around.

35 to 50 years

At this point, your family is expanding as you and your spouse may have a kid, increasing the number of dependents. At this point, the significance of life insurance policy becomes even more apparent. While managing the ordinary family expenses, you may have to assume responsibility for the child’s school fees and make arrangements for the medical needs of elderly parents. At this point, you should consider investing in a life insurance policy that also provides good returns, such as a ULIP (unit-linked insurance plan). The ULIP offers both life insurance and market-linked returns. You can invest in equity or debt funds to establish a sizable corpus for the future, depending on your unique financial objectives and financial situation. You can also consider investing in a retirement plan, which is a policy that provides regular payments in the form of a pension to allow you to live a financially independent life when you retire.

50 years and beyond

At this point, your children will be adults and financially self-sufficient. It might be time to start thinking about your life’s second act — retirement. Assume, however, that you still have any responsibilities, such as a child’s education loan or a marriage debt. In that instance, it may be unrealistic to expect a family member to shoulder the weight of repayment in your absence. Furthermore, a sudden loss of income may put your family in financial jeopardy.

The Key Benefits Of Life Insurance

All types of life insurance can provide you with the financial assurance that your family will be financially stable in your absence. Here are some of the amazing benefits of life insurance:

  • Life insurance payouts can assist offer financial stability for surviving family members.
  • It can assist in lessening the impact of losing a parent or partner.
  • It might assist to make up for lost revenue for people you leave behind.
  • It can be used to pay off overdue obligations owed to loved ones, such as a mortgage.
  • Some insurance policies are meant to help with funeral expenses.
  • Some add-ons, like Critical Illness, can aid with missed earnings.
  • Most importantly, it may provide you with peace of mind knowing your loved ones are being cared for.

Best Life Insurance Plans Available In India

Let’s talk about the best life insurance plans that you can buy in India:

1. ABSLI Life Shield Plan

The Life Shield plan from Aditya Birla Sun Life Insurance (ABSLI) is a non-linked, non-participating term insurance policy. The plan is an excellent choice since it allows you to choose from among eight various plan alternatives based on your family’s needs, ensuring that your family’s lifestyle is not jeopardised even in your absence. Along with death benefits, the plan also includes terminal illness benefits, a premium waiver for total and permanent disability, a premium waiver for critical illness, joint life protection, improved life stage protection, maturity benefits, tax benefits, and extra riders.

2. Canara HSBC Oriental Bank Of Commerce – iSelect Star Term Plan

Canara HSBC Oriental Bank Of Commerce – iSelect Star Term Plan is an excellent plan that can assist you in overcoming life’s uncertainties. iSelect Star Term is an individual non-linked non-par pure risk premium life insurance policy that can be purchased online at low premium prices. This is a versatile term plan that allows you to tailor it to your lifestyle demands by providing a variety of coverage, premium payment, and benefit payout choices. The iSelect Star Term plan includes full life coverage, but it also lets the policyholder select coverage for a specified time. One crucial point to notice is that the plan offers three coverage options: Life, Life with Return of Premium, and Life Plus.

3. PNB MetLife Term Insurance

The PNB MetLife Mera Term Plan Plus provides the most comprehensive financial security for you and your family. It is a single-person, non-linked, non-par, pure risk premium life insurance policy. The plan is well-known for its feasibility feature, which provides complete life coverage at a relatively low cost. When you purchase this plan, you have the choice of selecting protection against Death, Disability, and Disease through options such as Life, Life Plus, and Life Plus Health. What’s remarkable is that you may select them as well as many extra and cover enhancing choices. The plan is adaptable to the needs of the insured, allowing them to stay protected for the rest of their lives (up to the age of 99) or pick a coverage period that suits them. PNB MetLife Mera Term Plan Plus relieves you of financial worries while also providing tax benefits by current tax rules.

Wrapping It Up

As a result, life insurance coverage is essential at all stages of life. You may invest in various life insurance policies at different times of your life to develop your wealth and safeguard your family members from any financial difficulty that may befall them as a result of your untimely death.