Every year about 10-12 million people enter the job market in India. Most people lack financial literacy during the first few years of their career. Their struggle with investments, spending, and borrowing, is an indicator of their poor balance sheets. Getting insurance is crucial during the first few years of your career. When you buy life insurance early, you get to avail benefits such as lower premiums and higher. It's always better to start your life insurance premiums right from the day you get your first salary.

Here’s why investing your first salary in insurance policies is a good idea.

Combat contingencies

Life is unpredictable. Unforeseen events catch us off-guard, leaving our loved ones in a flux and us. We can't predict or avoid such circumstances, but all we can do is build financial security that becomes a buffer against such untimely events. Therefore, don't wait for a higher pay cheque or a more senior position at your job, get life insurance right from the first month of your job and combat contingencies.

Time to invest

When it comes to investing your money, the earlier you start, the better it is. Life insurance policies give you higher returns or more extensive cover at low premiums. Endowment and money back policies are your best bet when it comes to investing in insurance policies. Not only investments but they also double up as your tax saving instruments. Therefore, invest your first salary in insurance policies that will give you highly lucrative returns.

A strong base for financial planning

Laying a strong base for anything helps you to build a sturdy structure. The same goes for investments. With insurance, you will lay a strong base for financial planning as you will have a lifelong security right from the beginning of your career. The best part of investing insurance right from the day of your first salary is that you don’t have to set aside a large part of your salary for premiums. Insurers usually offer you a higher coverage for very low premiums.

Earning the first pay cheque is an exciting feeling. It’s your hard-earned money, and you would want to splurge it on many things. While it is okay to do so try to also inculcate one important habit right from the beginning – financial planning. Start paying for your insurance from your first salary and continue it till your last pay cheque.

Learn more about different Online Term Insurance Plans here.

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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