Financial needs change with change in one's life stage. Whether it's your marriage, children's education or retirement years, you need money to get through the various stages of life comfortably. Life insurance helps you meet these requirements and prepares you for unforeseen expenses. Insurance provides you with financial security that helps you take care of your loved one.
In order to reap the benefits that insurance has to offer, you must factor in insurance early in life.
When it comes to life insurance, be an early bird
Ideally, it makes sense to buy at least one life insurance policy when you have just started to earn. Doing so has its own advantages. Not only do you add a crucial instrument to your financial portfolio, but it also helps ensure that your family's financial situation does not debilitate should anything untoward happen to you. Besides, when you start young, the premium amounts too are lower.
At a later stage in life, you can always revisit your insurance portfolio and add another policy keeping with your changing financial needs. This process is called a life insurance review and is extremely important.
Review your life insurance plan from time to time
Life insurance is not a one-size-fits-all solution. It is therefore important to review your life insurance plan at regular intervals. It will prepare you for life's various milestones and the associated expenses. One of the biggest advantages of a life insurance review is that you do not stay underinsured. As age advances, your responsibilities increase and lifestyle undergoes changes. Based on timely reviews, you can revise your life insurance cover from time to time.
It is only with constant reviewing of your insurance plan can you start building a corpus for your old age.
Planning for the future
You start working, get married, have kids and soon enough, your kids grow up. Even before you realize it, you find yourself standing with a farewell bouquet at the threshold of a new phase of life - the post-retirement period. To ensure that you don't take a financial hit in your older age, you must plan for it in advance. Taking a life insurance policy at a young age will simplify things for you as you approach the golden years of your life.
There are varied options of life insurance plans that one can choose from such as term life insurance, whole life insurance, universal life insurance, permanent insurance or annuity products . You can choose to go with monthly income or annual payouts as per your requirements. If you choose to buy a monthly income plan, you will be entitled to a monthly income during your post-retirement years.
How your retirement plan will help you in your old age
On various occasions, people are under the impression that savings accrued over a lifetime are sufficient to see them through old age. This is perhaps one of the biggest misconceptions. Life is unpredictable and sometimes all it takes is a bout of critical illness to wipe out all that you had saved. You can avoid such a situation by opting for a retirement plan early in life (preferable in late 20s or early 30s). It supplies you with an income every month, almost similar to the salary that you used to receive when you were employed. You can use this money for your routine expenses as also for health emergencies.
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