Actually, Financial Planning Begins in Your 20’s!
20’s can be tricky. You’re right out of college in your former 20’s and you start working and earning. Now, this is the first time in your life that you have to think about managing the income you receive. The person who used to survive with whatever money that mom and dad gave as pocket money, has now started earning on their own. He/she has to also be careful about the whole savings 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.
Now let’s talk a bit about the 30’s. This is the time you’re likely to be settled professionally. You may be married and even have children. You would probably also own a house. At this point of your life, you’ve already made financial decisions in your life and have gained experience with the same.
By this time if you haven’t already bought one, you’re at least thinking of getting life insurance. Now, you have people in your life who depend on you financially. So, the value of your life has now increased with both the numbers of bills and family members.
If we closely analyze the two scenarios above, it can be concluded that the people who are in their 30’s are more likely to realize the need of life insurance due to their increased financial responsibility.
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.
Here’s How an Early Life Insurance Can Save You a Fortune Later
As a result of getting a life insurance plan like Edelweiss Tokio Life – Simply Protect in your 20’s, you’ll benefit from cost-saving. Let’s understand how:
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, as well as offers life cover. 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 starting financial planning in your 20’s, you’re already able to have a good savings by 30’s.
So, you’ll be able to fulfil your dreams faster, rather than by starting your investment planning late.
Let’s say you invest in Edelweiss Tokio Life Wealth Secure+ in your 20’s. So, when this policy matures, you’ll get a financial edge to plan your foreign vacation with family.
- Source of Income
Apart from providing life cover, life insurance can also be a source of second income. For instance, Edelweiss Tokio Life Income Builder. This plan helps you build a regular as well as lump sum income.
So, if you opt for this 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.
In this case, as rightly said by someone, time really is money. It’s better to realize this rather than regret later. To check out our various life insurance saving plans, visit edelweisstokio.in