Peace of mind is something that all of us strive for at every phase of our life. A concern always lingers in our minds about the well-being and financial security of the people we care the most about. A common thought that often comes to our mind is – what would happen to them if we were not around? The only solution to have peace of mind over such worrying thoughts is to avail adequate life insurance coverage. Having the safety net of life coverage at every life stage reassures us that our loved ones are financially secure even when we are not around.
Key Benefits of Life Insurance at Every Life Stage
As we progress in our lives, our priorities and needs change. However, one thing that remains constant is the ‘uncertainties of life’. Hence, it is important to have life insurance coverage that suits the different stages of our lives.
Let us take an example to understand why life insurance is needed for every life stage and the benefits of having one at each stage. Let us assume you are a 24-year-old who has just started your corporate life. Take a look at your insurance needs at each stage and reason to invest in appropriate life insurance plans at each phase:
Need for a life insurance plan in your early adulthood:
You are single at this stage, and your parents are still earning. Your current focus is on building a career and upskilling. And you do not have many responsibilities. Do you still need to take out a life insurance plan? Yes! This is the best time for you to take out higher-term insurance coverage at the lowest premium, as both health and time are in your favour. You can also lay the foundation for a good future by investing in some endowment life insurance policy to reap the benefits in the long term.
Need for a life insurance policy in your young adulthood:
At this stage, you are still in your 20s, and your parents may be now dependent on you. You have fewer responsibilities and some financial obligations ( for example, a vehicle loan). You need life insurance to cover you against unforeseen events and cover your debt. You also need a life insurance plan to build a secure future for your family’s future needs. At this stage, you still get the life cover at a lower premium. You can invest in ULIP (unit-linked insurance plans) to optimise return and build a corpus for the future.
Need for a life assurance plan when you are starting a family:
At this stage, you are newly married and planning to start a new family over the years. Major events like marriage and childbirth bring significant financial responsibilities. This ranges from daily expenses to home buying to planning for child education. As your role and responsibilities expand, there is an absolute need for a safety net. Along with term insurance, you need to think of investing in insurance plans for your children’s future and to secure your and your partner’s long-term future. You can use a life assurance calculator to calculate the premium.
Need for life insurance in your mid-life:
This is the time when wealth creation and family security matter to you the most. You are at the peak of your financial responsibilities with children’s higher education ahead, medical needs for aged parents, home loan debt, retirement planning for you and your spouse and many more to take care of. Higher-term insurance coverage is the need of the hour at this stage. You need to review your existing term insurance coverage and enhance the coverage if need be. You can invest in good endowment life insurance plans at this stage to build a significant corpus in the future. Secure Now platform can help you make the best life insurance choice with need-based comparison.
Need for life assurance in your pre-retirement stage:
As you are approaching retirement in a few years, your debt burden is reduced, and your children start earning. This is when you need life insurance to preserve your wealth that is created over the years. It can replace lost income, pay off any remaining debts, or provide for a surviving spouse’s financial needs.
Need for life insurance post-retirement:
In your golden years, your main focus lies on leaving a legacy for the next generation. In this stage, a life insurance policy can be a tool for inheritance and estate planning, helping you leave a financial legacy for your children and grandchildren. It can also ensure that the surviving spouse has no other financial obligations and can provide him/her with a financial cushion.
Conclusion
To sum up, a tailored life insurance policy is not just a financial tool. It is a financial safety net for you and your loved ones that protects against uncertainties at every stage of life. It helps you and your family navigate every milestone in life confidently and with a sense of security. From the beginning of your early adulthood to your golden years, a life assurance plan stays as your companion, offering peace of mind.
FAQs:
Can you cancel the life insurance policy after buying it if it is not aligned with your needs?
Yes. You can cancel your life insurance plan during the ‘free look’ period. This is generally 10 to 30 days from the date of purchase of the policy, wherein you are allowed to review the policy and cancel it if it does not align with your needs. Insurance companies will make refunds.
