Financial planning is necessary once you start earning. Insurance is one of the most crucial components of a financially sound plan.  The right time to buy insurance is usually the early years of your career.

The predominant belief about life insurance is that one must get it later in their career stage. However, this belief is utterly flawed. Most people in the first few years of their job avoid getting insurance because of lower salary and the belief that they don’t need security as yet. Let’s take a look at when is the right time to get insurance.

18 to 35

This is the average age for insurance seekers. Getting insurance after 35 becomes a bit difficult. Insurance companies not only charge you a higher premium but also give you lesser returns. The primary reason for this is higher chances of you getting major health ailments. As the average age of most health-related conditions has lowered, insurance companies have become more and more stringent about their health insurance policies.

As early as possible

Early years of your career are usually free of family responsibilities. In case, you are staying with your parents you may end up saving most parts of your salary. Use this money to buy an insurance policy and inculcate a habit of having a monthly budget. One of the reasons to purchase insurance policies early, i.e. in your twenties is because you get higher coverage at lower premiums.

Insurance policies act as dual instruments becoming your tool for security as well as tax saving. Hence, get your hands dirty in the financial planning ground and get a good life insurance coverage for yourself.

Delays will keep recurring

If you wait till you get that promotion or till you get that new job, you might miss a good offer for your insurance policy. Risks associated with your health increase as you age and hence, with a delay of a few years you may end up with an expensive insurance policy. Another reason why procrastination doesn’t help is that it is very likely that you may end up with additional responsibilities and debts.

You may want to start a family or may have other aspirations that will need you to borrow loans. This will eat up the most amount of your salary, making your procrastination to buy an insurance policy a reason to procrastinate even further.

The right time to buy an insurance policy is always the early years of your career. However, if you are not able to do so for any reason, get a life insurance cover that can be increased later in your life.

Learn more about our online life insurance plans.

DISCLAIMER

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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