Today’s 20 year olds have realized or fortunately have been made to realize the importance of saving and investing. Life insurance, is an important investment and statistics prove that many mid to late 20 year olds have shown interest in purchasing it. To prepare ourselves for life’s “what if” moments, the knowledge of financial tools is essential and life insurance is one of the most important such.
Additionally starting an insurance cover in your early twenties will eventually pay off in the future. Some benefits include:-Lower premium – when you start an insurance policy you are expected to cover an amount which you pay off, usually by means of an annual premium. This amount paid annually as a premium will be significantly lower, the earlier you start an insurance cover.
For instance, a person aged 24 will have a premium of Rs.7,000 and that particular plan will make a person aged 30 pay Rs. 9,000 as premium for an insurance cover of INR 1 crore.
Why so early?
Support – many 20 year olds have to support their family or a few of their folks along with themselves. In those scenarios, investing money in an insurance plan would prove beneficial in the long run and very helpful in unfortunate circumstances. It will provide those who rely on you with money after and if you are not there. A number of insurance policies offer lower premiums on beginning annually renewable policies. The premium rates do go higher every year but they also include invaluable benefits.
Stronger cash-value – regular payments of premium increases your cash value. This places you in a stronger financial position and enables you to access personal and other loans with flexible terms and conditions.
Exploration and Analysis – if you invest in purchasing an insurance plan during your 20s then you are bound to learn a great deal on the subject. As you keep getting older and observe lifestyle changes, you start evaluating the different types of insurance policies and based on your past purchasing experiences as well as your current lifestyle you could ideally settle for the one that proves to be the most beneficial.
Buying an insurance policy sooner than you plan to will reap you benefits sooner than you expect. Being a policyholder from an early age would coerce you to spend less and earn more, thereby getting into the habit of saving. In today’s world anyone can access information easily and this minimizes the risks of those purchasing insurance policies without prior knowledge.