Planning for life and any possible contingencies is a smart way to live, not to mention laying a foundation for a tension-free future.
Although it might seem tedious to research, contemplate and finally choose the policies to invest in, it’s a necessary exercise that can save you in times of need.
Insurance has been around for ages, and the schemes have only gotten better and more customizable over time. This is, of course, to encourage more people to consider insurance policies.
It’s often been the norm for people in their mid-40s or older to think about getting insurance, because it doesn’t seem like that much of a necessity until then.
It’s probably because of increased expenses and commitments, and the realization that retirement age isn’t too far off. However, if you think about it logically, the earlier to invest in insurance, the greater the returns are going to be.
The working class has become wiser and more informed, which is why young professionals today are quite aware of their various investment options and also the risks and returns involved.
It might be the “years to be having fun”, but that doesn’t mean planning for the future isn’t necessary. Starting early means that you’re covering more ground, and you’re also laying a stronger foundation for your middle-age years.
When we say insurance, we’re talking about all types of insurance – life, health, auto, homeowners, and so on. Whatever type of insurance is applicable to you, the reasons for getting it in the first place are along the same lines. Arguably, life insurance is the most common and important way to keep your future secure.
Let’s look at 7 reasons why one should opt for life insurance, especially if you’re a young professional
1. Planning Ahead
Life is unpredictable, which we all agree on, and that’s where life insurance can give you that extra income to fall back on.
Expenses don’t stop even when we stop to take a breather in life, and this could be covered by a good insurance policy. If you have a family or parents to support, it’s an even more compelling reason to consider life insurance, because it can cover for expenses if something unforeseen is to happen.
2. Paying Debts
Some of us have had to get through education and higher studies with the help of student loans. When you take up loans, whether you’re around or not, paying off debts like these is essential, and the quicker you pay it off, the lesser the burden is on you.
Life insurance comes in handy in such situations, so that no one else has to bear the price of a debt you might have left behind. It’s not just about a responsibility towards your loved ones, but also about using resources effectively.
3. Education Planning
If you plan to have a family in the future, or already have one, then life insurance can be useful for another important expense – educating your child.
Education isn’t cheap, and while there are different subsidies available, insurance payouts can actually aid in reducing that expense by a decent margin.
You could either use it in real-time or save it up and invest into something larger in the future. Either way, it’s a saving for sure, and for a cause that is quite vital.
4. Saving for Retirement
Yes, there are plenty of great retirement plan in the market that you can choose from, but why do you have to think about retirement so early on? Because it’s simply the smart thing to do.
Apart from retirement plans, life insurance can also become a steady source of income in the years after you’ve retired.
Even if it’s not you but your partner who’s retiring, it’s good to encourage them to purchase a policy earlier on, for the sake of a steady stream of income.
5. Getting a Good Deal
Investing in an insurance policy when you’re younger has the very attractive benefit of value for money. When you’re young, single and have a good health and credit history, companies offer you great schemes with low rates of interest.
As you get older, the availability of good deals reduces significantly. And you can always upgrade your policy and premium amount as you become more financially stable, while still enjoying the benefits of starting early.
6. Tax Matters
As your career kick-starts, you realize that taxes are as essential as your income. Everyone has to pay their respective taxes, but how do you manage to save on it wherever you can? Insurance is one such option. The premium paid for insurance policies is waived off up to a certain limit.
So, you’re not only saving on tax expenses but also investing that money into something that has guaranteed returns in the future. It’s most definitely a win-win situation.
Even if there aren’t assets that you will be passing on, a life insurance policy can very well be a considerable asset to give to your family and future generations. Considering that tangible assets can either appreciate or depreciate over time, policies usually only appreciate in value.
Hence, life insurance is something you can hand over to those you leave behind, and of course, create your legacy as well.
With these basic but important reasons, what we’re trying to say is that everyone requires insurance at some point in their lives. The younger you are the more potential there is for appreciation and growth. Remember to always look out for the best term life insurance quotes and consult multiple companies before zeroing in on the one that suits you best.
Author Bio: Pete Raj