There is a misconception in India That We’ll need life insurance (LI) beyond 68 years of age.
LI is meant for replacing your income stream. Why? So that people dependent on your income don’t lose your financial support when even if they lose you. Nor would your liabilities fall on them.
Typically most people don’t really need any LI before they start earning or beyond 60-65 years of age. By this age:
- You would have already provided sufficient assets for your loved ones(usually spouse) to inherit. These would enable them to continue at the same standard of living.
- Other than your spouse, you would not have any dependents. You’ll be lucky if your parents are still alive, unlucky if your children are still dependent on you..
- You would have paid off all your liabilities.
You really don’t have to do anything or be prepared for the happy surprises in your life. But, what about the unhappy ones? Such as a permanent disability or death? It is of the utmost importance that your family continues to meet its financial requirements even after you are not around. To secure your family’s future, you need to have term insurance.
There are many terms plan, Do you want to know about the terms plan? Just leave a missed call on Moneymindz.com India’s Best Financial Advisor 022-62116588 or Download Financial Freedom App and post to expert your Queries . Moneymindz.com offers Free, Unbiased and on-call financial advice on Investment Assistance for insurance, Loan Assistance Retirement, Planning, Money Management Investment, Advisor, Retirement Planning, Best Health Insurance.
Which you may want to consider buying. But the question is at what age? 27 years? 35 years? 42 years? While the investors and insurance experts have their own viewpoints regarding the right age, what really matters is the right life stage of the life when you would want to buy a term insurance plan.
We will discuss some factors that should help you to decide when is the right time to take a term insurance plan.
The earlier you take a term insurance plan, better it is. The first reason being that younger the policy holder, lower the premium. This means that for a cover of say one crore, a person who starts early would pay lesser than a person who starts later and so on. Insurance companies see better prospects in a young policy holder paying all premium instalments since he has most productive years ahead in terms of earning capacity.
Secondly, you have lesser financial liabilities when you are younger, in terms of loans and other debts.
You just got married:
At this point, you would need to focus on saving for future needs and begin a savings plan for your family. A life cover would be a good idea to protect your spouse. All in all, more financial responsibilities. Take a Term Life Insurance at 30 and it would have to be one with more coverage.
You are married with young children:
Your children’s education and future expenses take centre-stage now. You may want to protect your family from the burdens of loan repayments if you aren’t around, and begin thinking of planning for your retirement. This means a higher degree of financial protection.
Your children are starting college:
Children in college? Time flies, right?Now would be a good time to start thinking of putting your feet up and plan for your golden years. Term Plans? We’ve got a better idea. Think pension plans.
So, more your delay buying term insurance, more premium you have to pay and higher cover you have to look for.
Note: The premium you pay also depends on the age till which you are covered. So when you opt for a policy that lasts till a later age, you end up paying higher premiums from the first year itself
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