Life insurance is an insurance product that is meant to secure the future of your loved ones in your absence. Life insurance is essential for those who have several people depending on them financially. It ensures your loved ones get financial security if you suffer an untimely demise. For this reason and more, people often tend to associate life insurance with older people. They think that only middle-aged or senior citizens should buy life insurance. However, suppose you listen to the experts and look at the anecdotal experience of many people. In that case, life insurance has a purpose at different life stages, whether in your 20s or 50s.
Purpose of life insurance in your 20sÂ
When one is young and in the prime of one’s life, securing one’s life against unfortunate events seems like a far-fetched thought. However, this might be the best time to buy life insurance. As you are at a relatively healthier age with less risk of a health issue, the insurer will quote you lower premiums. You will understand this better when using a life insurance premium calculator; as you reduce the age, the estimated compensation will also decline.
Even if you do not have any financial dependents, buying life insurance is a financially sound decision, as it will help you create a lump sum amount when it matures.
Purpose of life insurance in your 30sÂ
This is the period of your life when responsibilities are rife. You are probably settled with a family and have children growing up. Your parents may also be living with you and may be financially dependent on you. This means that you have a more significant number of people depending on you. Your life insurance premium may increase slightly as you reach your late 30s. However, paying them would also become a bit easier as, generally, people start climbing up the career ladder and get settled in their respective professions during their 30s. You may also consider buying ULIPs and similar life insurance products.
Buying life insurance is non-negotiable at this stage of life. As your parents are getting older and your children are growing up, if anything were to happen to you at this stage in life, it could negatively impact your family.
Purpose of life insurance in your 40s and early 50s
As middle age approaches, the kind of responsibilities you have change. Now, it is your and your spouse’s health that you have to look for. The cost of your children’s higher education would be on your shoulders. This is also a time when you have to be very prudent with your finances and secure the future of your loved ones. At this stage, life insurance policies’ most important benefits would be peace of mind and security. If you have opted for riders such as critical illness insurance, it could help alleviate the financial consequences of diagnosing a critical illness.
Purpose of life insurance in the late 50s and 60sÂ
This is the time when your retirement is coming near. Unbeknownst to many, life insurance can effectively help during your retirement years. You can opt for annuity life plans, ULIPs, endowment plans, or other retirement-specific life insurance plans, which can ensure that you receive a steady number of returns in your golden years and a life cover. If you have been late to join the life insurance brigade and are buying it at this age, you may incur higher premiums. It is advisable to opt for a whole life insurance plan at this age, as this will ensure that you reap the benefits of life insurance for a more extended period.
Riders like critical illness insurance add-ons and waiver of premiums can be immensely beneficial during this stage.
Looking at the points mentioned above, it is evident that life insurance plays a vital role at several stages in one’s life. If you are concerned about the premiums, you can use the life insurance premium calculator to tweak some variables to see where you can change your requirements to get the compensation you want. A talk with your insurer would also help greatly. Read any policy’s terms and conditions before proceeding with it.
