Ask any working professional and they will tell you how attaining a life insurance policy is one of the wisest financial moves they’ve made. A life insurance plan will protect you and your loved ones from the unpredictable events that endanger lives and it will keep you financially prepared. It helps people ensure that their family can live their dreams and maintain their lifestyles even if they’re gone.
If you understand the importance of life insurance, you will find yourself asking what the right time in your career is to get a policy. Here’s insight into how you can align your life insurance policy with your career milestones and goals.
The first pointer is that you should remember that a life insurance premium increases with age. The younger and healthier you are, the less expensive it is. And the second most important factor is noting if you have dependents and how many people depend on you financially for survival. Thus, alongside your career, life insurance is a necessity.
Since it is advised that you get a life insurance policy at the earliest possible time, get one as soon as you start earning enough that you are saving. Once you have savings, the obvious next step is to find the best way to allocate the savings for maximum returns. If you have multiple dependents and your primary goal is to ensure that they have a financial safety cushion in the unfortunate event that something happens to you, then go for a term insurance plan. It is a pure life insurance product that offers a high cover amount at a nominal premium.
If your goal is more inclined towards wealth creation or getting regular returns, then you can opt for insurance products with an investment component built into them.
Many plans also extend the option to include additional riders for covers against accidents, critical illness and disability. Overall, how you decide to build protection for your family will influence how you will plan your life insurance policy investment.
If you are in an industry that demands a tough lifestyle, consider getting a policy right away. The stressors at the workplace increase with every new business achievement, and health issues can pop up as you gain more business and responsibilities. As a business owner, do not procrastinate on acquiring a life insurance policy for another moment.
Also, don’t forget that over the years, life insurance has evolved to provide options for building wealth or tax-free investments. According to Section 80C of the Income Tax Act of 1961, the sum assured and the premium payments are exempted from tax and a deduction of Rs 1.5 lakhs can be claimed for the premiums that you paid for your spouse, children and yourself.
Life insurance is an important part of your financial toolkit; check out discountlifecover.co.uk for further resources. You have to assess your individual needs depending on age, family situation, career stage and financial obligations.
