Investing in Life Insurance: When is it the Right Time to Start?

Financial Planning Begins in Your 20’s!

20’s can be tricky. You’re right out of college, and you probably just started working and earning. Now, this is the first time in your life that you have to think about managing your income. The person who used to survive on mom and dad’s pocket money has now started to earn on their own. You have to be careful about the whole saving and spending equation.

This is the first-time adulthood comes knocking at your door. It’s a huge transformation in life, which can even be stressful for some. However, if you’re careful and conscious about your planning, it can be a cakewalk. Your 20’s is also an ideal time to start investing a part of your income into a life insurance policy.

Here’s How an Early Life Insurance Can Save You a Fortune Later

By getting a life insurance plan like Edelweiss Tokio Life- Guaranteed Savings STAR in your 20’s, you will be able to reap the benefits of your investment by your 30’s. Let’s understand how:

Premiums

As you venture into your 30’s, with growing age, the amount of premium that one has to pay increases. In other words, the same policy that you take in your 20’s will charge you lesser than when took in 30’s.

This is because there are several factors taken into consideration. For instance, age, gender, income, city of residence, nature of employment, etc. Moreover, a person in 30’s has a higher paying capacity than in 20’s. So, if you buy a life insurance early, you’ll have to pay lower premiums throughout the premium paying term. This can be very economical, as you’ll have to spend a lower amount in the future.

Investing Early

In your early 20’s, you don’t have a lot of financial burden. The money earned is usually spent on either day-to-day expenses, or entertainment or leisure. However, by spending lavishly on short-lived pleasure, you miss the opportunity to save for the future.

In your 30’s, you have a lot of expenses that need to be taken care of. For instance, rent, buying your first car, mortgage, motor insurance, health insurance, travel insurance, etc. Therefore, in your 20’s you have the opportunity to grow your wealth by investing some part of your salary regularly.

ULIPs (Unit Linked Insurance Plans) are one such product that offers dual benefit. In other words, premiums paid are further invested as per your risk-taking ability, and you will also be offered life cover according to your premium rates. So, by the time you reach your 30’s, you’ll have a good financial backing already.

No Delay in Dream Fulfilment

We all have dreams, but the question is if we’re able to achieve them in time. By financially planning in your 20’s, you will be able to accumulate a decent amount of savings by your 30’s. This will allow you to fulfil your dreams for the future promptly.
For example, let’s say you invest in Edelweiss Tokio Life Wealth Secure+ in your 20’s. When this policy matures, you will get a financial edge to plan your foreign vacation with your family.

Source of Income

Apart from providing life cover, life insurance can also be a source of second income. For instance, Edelweiss Tokio Life- Premier Guaranteed Income is a plan that helps you increase your income for the future. Moreover, if you opt for a ULIP in the early years of your life, you can start a regular source of income from the very beginning. It will abolish any future financial uncertainties.

It’s Never Too Early to Start with Financial Planning

Opting for a life insurance is one of the wise ways to start investment planning. Being in your 20’s, you should take advantage of your financial independence. So, buy a life insurance policy before other responsibilities start burdening you.

What if You are Already in Your 30’s or Older?

Now let’s talk a bit about the 30’s. This is the time when you are likely to be settled in your career. You may be married and may even have children. Maybe you even have your own house! At this point of your life, you have already made financial decisions in your life and have a decent amount of experience with financial matters.

By this time if you haven’t already bought one, you are at least thinking of getting life insurance. Now, you have people in your life who depend on you financially. The value of your life has now increased as you likely have a well-paying job. But at the same time, you will need to take care of a lot more bills, and you can’t be frivolous with your money if you have a family dependent on you.

This means that you have a much greater need for a life insurance policy than when you were in your 20’s. A good life insurance policy will ensure that your family is well-provided for even in your absence. But here’s the catch – the financial importance of life insurance is high at this stage, So, even the cost to provide protection for your life will be higher.

As someone rightly once said, “time really is money.” It’s better to realize this sooner so that you don’t regret your financial decisions later in life. To check out our various life insurance saving plans, visit edelweisstokio.in.

 

Neha Panchal - Financial Content Writer

Neha used to be an Engineer by Profession and Writer by passion, which is until she started pursuing full-time writing. She's presently working as a Financial Content Writer, with a keen interest in all things related to the Insurance Sector.