Why I Took Out A Life Insurance Policy In My Early 20s
It is the innate desire of many people to build a robust investment portfolio, but, only a few accomplish it. Irrespective of your financial goal, one of the best ways to achieve the goal is to start investing early. When you start early, you have the advantage of the time to let your money grow and readjust your portfolio to build the corpus you desire. Several investment gurus suggest the best time to start thinking about your investments is as soon as you get your first salary in your 20’s.
Apart from starting early, you must have a meticulous investment plan. You need to ensure you have divided your income proportions between things such as savings, wealth creation ways, emergency funds, etc. However, there is something that might play a crucial role when you grow older, and you have a family that relies on you, and that is life insurance.
You must secure your life from any unforeseen event. Most young adults might think that since they are healthy and they won’t need a life insurance policy any time soon. Not paying for life insurance will save you some extra money now but may prove to be a costly decision later on.
Now you might think is it worth buying life insurance in your early 20s? Yes, it is worth it. Find out how by understanding its benefits:
- Financial protection
Of all the advantages that a life insurance plan provides, financial security tops it all. You may have started your career just now, but you will retire eventually. You can pay the bills and lead a good lifestyle even after your working days are over. If you start investing in life insurance early, then you can manage life after retirement much easily. Also, with insurance plans like term insurance, you can secure your family’s future in case of your unfortunate demise. Lastly, a life insurance policy can help you strengthen and secure your financial portfolio at the same time.
- Variety of options
If you want to buy a life insurance plan, then you might be interested to know about the different types of policies you can choose from. With life insurance, you can look at wealth saving as well as wealth creation options.
For example, with an endowment policy, a policyholder can earn a lump sum amount after the completion of a specific term. Meanwhile, in a unit-linked plan, a policyholder can avail insurance and investment opportunities in the same policy.
- The younger you start, the better it is
A buyer’s age is of high importance to the life insurance provider. Hence, insurers provide policies at lower premiums to the ones who are in their early 20s.
While the benefits of life insurance are plenty, you must know which one suits you the most. While some may be happy to save for retirement, others might want to accumulate wealth while saving. Find out what your needs are. Based on them, conclude which ones fit right in your budget. Since you are starting at an early age, you get the advantage of time on your hands. Optimise it efficiently and secure your future.