What did you with your first paycheck? Buy that watch which you fell in love with or give it to your parents? Would you go and splurge it on an expensive dinner or would you rather invest it? Most people end up blowing their first paycheck because it is human nature to celebrate little things in life.
However, what no one talks about is life insurance. Most professionals believe that life insurance should be purchased at a much later stage in life because there is no use of it when they are young and healthy. But no one knows what the future has in store for each one of us; it’s better to be safe than sorry.
In case you’re still wondering why you should purchase a life insurance at such a young age, here are a few more reasons which will convince you otherwise:
1. Insurance is more important than investment:
Sure, investing your money is also a big step towards a financially secure future but what most people tend to ignore is staying protected. While investment is important, life insurance is crucial; especially if your family is financially dependent on you. You have to take precaution today to prevent your family from going through a financial crisis in the unfortunate occurrence of your death. Even if you aren’t the sole breadwinner of the family, your loss will still affect their finances. The life cover provided will substitute your income and enable your family to live comfortably.
2. The sooner you buy insurance, the better:
Just because your parents purchased life insurance when their hair started going gray; doesn’t mean that you have to do the same. Buying insurance early is highly beneficial because it means having to pay a much lesser premium to obtain a large life cover. Insurance gets more expensive as you grow older. Moreover, a healthy person has to pay less premium than a person of the same age who has some illness. However, if you contract a disease at a later stage in your life but you’ve already bought a life insurance when you were fit and fine, your premium does not change.
3. You also get tax benefits:
Life insurance not only helps to secure the financial future of your family, but it also offers you various tax benefits. Investment in all life insurance products is tax-deductible. As you start earning more, tax-planning shall also get more important.
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