While there is no hard and fast rule to select a particular type of life insurance at a particular age, the different types of products better suit the different phases of life. So, what are the different options? Here are some top recommendations-
1. Young and Healthy in the 20sIn the 20s, people generally start working and are mostly healthy and single, at least in the early years. While it can be an excellent time to purchase whole life insurance as the premiums would be significantly cheaper, you should at least go for term insurance in your 20s.
These plans offer life coverage for a fixed term and are very popular for their affordability.
2. Managing Responsibilities in the 30sYou might be married now and probably have kids too. The added responsibilities make life insurance more important than ever. In your 30s, a ULIP (Unit Linked Insurance Plan) or an endowment plan can be an excellent choice.
These are life insurance plus investment plans which can be used for achieving many different types of long and short-term financial goals. A child plan can also be a great option if you are in your 30s to make sure that your child has a financially secure future.
3. Retirement Planning on Your Mind in the 40sWhile you should start planning your retirement as soon as you start earning, the 40s is not too late to begin. There are retirement plans or pension plans which work as life insurance while also allowing you to build a corpus for your post-retirement years. Whole life insurance plans and child plans can also be good options in your 40s.
4. Better Late Than Never in the 50sIf you are in your 50s and have not purchased life insurance, now is the time to decide. Many of the insurance providers do not offer life insurance to people above 60. Retirement plans, child plans, and whole life insurance plans are some of the options for someone in their 50s.
Note that as you have already crossed 50, you will be considered a high-risk customer by insurers. So, the premium of the policy can be considerably high.
Making the Right Selection
You can always get in touch with a top insurer to know more about the options discussed above. Based on your requirements and age, the insurer can recommend a product that perfectly matches your needs.
Learn more about different Online Term Insurance Plans here.
The information contained herein is generic in nature and is meant for educational purposes only. Nothing here is to be construed as an investment or financial or taxation advice nor to be considered as an invitation or solicitation or advertisement for any financial product. Readers are advised to exercise discretion and should seek independent professional advice prior to making any investment decision in relation to any financial product. Aditya Birla Capital Group is not liable for any decision arising out of the use of this information.
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