Five Reasons why you Should Buy a Life Insurance Plan in your 20s

Your twenties are the best time of your life. You have very little to worry about, your life is just taking off and you’re open to exploring new opportunities. Things like life insurance policies, health insurance and wealth creation and management are not something you need to worry about. But you are wrong.

Your twenties are perhaps the best time to invest and kick start your wealth creation, to invest in life and health insurance policies, which will all come in handy at a later stage of your life. This is because disposable income is in abundance for most twenty something’s, with many employment opportunities and handsome packages. If you make the right choices and place your money in the right place during this time of life you can rest assured that your future will be financial secure.

Life insurance is the most basic investment anyone can make. Here a few reasons why you should invest in one when you’re in your twenties.

1. Savings are tough to manage when you’re in your twenties. Life insurance helps you save your money for better use during this time. By setting aside a fixed amount, which you pay as a premium, you save that much money. You can get this money back when your policy matures and put it to use elsewhere if you wish.

2. The huge amount of tax that is deducted from your monthly salary can be significantly reduced when you invest in a life insurance plan. Your payment towards the premium of your policy is exempted from tax. Also any payout you receive from a life insurance plan is completely tax free under section 80C of the Income Tax Act.

3. Insurance plans are of many types, there are some types of life insurance policies that provide assured returns. Unit linked insurance plans or ULIPs provide investment opportunities along with life cover. In these plans a part of your premium goes to your life cover while the other part is invested in equity or debt.

4. Life insurance payouts can also be used to pay off loans and any debt that you may have like student loans or housing loans. If during the tenure of your plan anything is to happen to you, your life insurance company will help your family to pay off your loans with your insurance money.

Buying life insurance policies when you’re in your twenties, makes most sense because the premium you pay for them is much lower when you’re young and healthy.

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Created on Sep 25th 2017 05:16. Viewed 923 times.

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