A life insurance plan is a must if you want to make the best of your investment. It guarantees that your family’s financial future remains secure and provides you with a savings and maturity benefit that is unmatched by any other investments. However, just like you would want to invest early in different schemes and plans, it’s something that you must invest early on as well.
There are various reasons behind this suggestion, and in this article, we will look at a few reasons why it’s so important to invest in a protection plan at a young age.
More Cover at a Lesser Premium
Getting a life insurance protection plan at a young age gives you more coverage at a much lesser premium than what you would have to pay if you took bought a plan in your late 30s. The more you delay getting coverage, the more you will have to spend on getting the same amount of cover; therefore, it’s best to start early on in your life and make that much-needed investment in a protection plan.
The right insurance plan comes with the dual advantage of a life cover for couples with wealth creation. The premiums you pay are further invested into market-linked plans that promise high growth rates, which adds to the overall maturity benefit you get at the end of the policy term. It’s just like any other investment where the power of compounding plays a vital role in how much you get once the term ends. So, the earlier you start, the better returns you can expect at lower premiums.
By investing in a life insurance protection plan early on, you can benefit from Sec 80 D of the Income Tax Act, giving you a tax rebate on the premiums you pay for your insurance cover. Moreover, the maturity benefit you get at the time of policy maturity is tax-free, so if you want to be a smart investor and want to save on taxes, then why not start investing early and use that amount to build wealth for yourself over the long term. However, tax laws are subject to change from time to time.
Choice of Multiple Plans
As you get older, the choice of plans starts dwindling, as your age starts playing a major barrier. Investing early on gives you the leverage to choose any plan that you see fit to meet your financial objectives without paying a hefty premium each year. As mentioned, starting early on comes with its benefits, and ignoring the importance of starting at a young age will get you less cover, at a higher premium, with less time left for wealth-creating and tax savings. So, all-in-all, it’s not a place you want to in; therefore, start early to reap all of the benefits of a protection plan to its fullest.
Last but not the least, starting early means you are covered at a young age, giving you the freedom to concentrate on your career better without having to worry about a financial safety net for your family. Moreover, the savings and maturity benefit component ensures that you have a corpus ready at the end of the term to make you financially independent, helping you continue to enjoy your life without having to compromise on your aspirations.
A life insurance policy is one of the most potent tools to safeguard your financial status and give it a boost over a period. Even though you may choose to make other investments as well, it’s one of the single most important products that you shouldn’t delay investing while you are still young.
There is a range of life insurance protection plans designed for the modern millennial generation to increase their wealth while staying protected so that if life takes a turn tomorrow, you don’t have to!