Young individuals tend to be full of energy and optimism, constantly trying to better themselves in every sphere of life. While these qualities are commendable, it’s also important to think about long-term financial goals. When considering smart financial investments, life insurance is ideal for maximising savings. Keep reading to understand the importance of a solid life insurance plan for young individuals.
Can Young People Apply for Life Insurance?
Young individuals can easily purchase a life insurance policy according to their needs. The entry age for life insurance typically starts at 18 years. However, this can vary depending on the insurer and policy.
It is a common misconception that life insurance is only for older people or individuals with dependents or that it is too expensive. If you are young and healthy, you can lock in a life plan at lower premiums and enjoy several benefits, including financial protection, peace of mind, tax advantages, and more.
Why Do the Younger Generation Need to Have a Life Insurance Plan?
Starting to invest early in life insurance can benefit you in the following ways:
- Better Financial Security
Having a term insurance or whole life insurance plan can empower you with financial protection to support your family during unfortunate events. Preventing your family from facing financial setbacks at a young age is no less than an achievement in life.
- Tailored Coverage for Younger Individuals
Many life insurance companies offer policies with unmatched flexibility, specifically designed to meet the financial requirements of younger people in the country. This includes increasing or decreasing the sum assured, policy term, payout options, etc., based on your evolving financial requirements.
- Lower Premiums
One major benefit of having a life insurance plan for younger people is the lower premiums. The premium amounts are determined based on factors like age, health, income, etc. Thus, younger individuals can opt for insurance policies at lower, affordable premium rates.
- Long-term Investment Option
Life insurance policies are long-term investments that help maximise your savings from an early age. Apart from the insurance coverage/sum assured, compounding growth will increase your chances of earning better returns in the long run.
- Tax Benefits
Life insurance is also a beneficial tool to ensure maximum tax savings. Under Section 80C of the Income Tax Act of 1961, you can save a substantial amount of up to Rs. 1.5 Lakh. Not just that, Section 80D of the Income Tax Act allows you to save taxes on premiums paid for critical illness, surgical care and similar coverage in your life plan.
Final Words
To sum up, life insurance is a wise financial choice regardless of your age. Contrary to common misconceptions, it’s not limited to older individuals, nor is it too expensive. Investing in life insurance early offers several advantages: premiums are often lower, and you can save on taxes. Start your life insurance journey today and help ensure a stable financial future for you and your loved ones.
