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Why Life Insurance Is Important at Every Stage of Life

Feb 13, 2020 | 5 months ago | Read Time: 3 minutes | By iKnowledge Team
Importance of Life Insurance

36% of Indian families with children consider a term plan to be their first choice when it comes to purchasing life insurance. While only 29% of those without kids realised the importance of life insurance, a whopping 25% of families with kids had much more information on the different plans in the market.

While marriage or the birth of a child can prompt one to consider buying a life insurance policy. It can benefit the policyholder even when they are in the prime of their life. Let us look at how life insurance is crucial at different stages of your life and can offer you protection and peace of mind:

18 – 25 Years

Most individuals shrug off the thought of buying a life insurance policy at this age, thinking it is too early an age to be investing in insurance policies. This is largely since most individuals in the 20s are healthy, disease-free, have no dependents and little or no responsibilities. However, these very reasons can work to one’s advantage and help them secure extremely low premium rates when purchasing a life insurance policy. The importance of life insurance is a given and sooner or later, one would have to invest in such a plan. The earlier one purchases such a plan, the lower the premiums would be. One can also secure a higher sum assured at an affordable rate, when young.

What you should do: Opt for a flexible term plan that allows you to increase coverage in the future.

25 – 35 Years

Most individuals, at this stage in their lives, get married or are already married. Consequently, one’s liabilities and debts begin to grow. At this point of time, the need may arise to opt for a home loan or put a down payment on a new car. As your liabilities begin to increase, so does the importance of life insurance. This is the optimum time to start financial planning for the future and start laying the foundation of a safety net, for your family’s continued well-being.

What you should do: Go for a term plan with a monthly income option, if you want your family to get assured monthly or annual income in your absence or a money-back plan, a type of life insurance that provides payouts at regular intervals to meet your financial needs.

35 – 50 Years

This is that stage of life when one’s family begins to grow.  As you and your spouse welcome children into your household, the number of dependents in your family would increase. The need to provide financial security to your family, in the event of your absence, becomes even more pronounced at this point of time. The pressure of expenses towards children’s education, medical needs of aged parents and managing a household are enough to awaken one to the reality of having a financial cushion for uncertain times.

What you should do: A market-linked insurance plan that offers the dual benefits of life coverage as well as market returns can be the right option for you. Not only can you build a sizeable corpus that will fulfill your child’s future goals, but also create a financial cushion in the event of your absence.

In your 50s and beyond

Your children might be financially independent by now and looking to retire. However, if you have taken any loans, say for your child’s education abroad or to finance your child’s wedding, it might not be feasible to expect your spouse to bear the burden, in your absence.  Moreover, the sudden loss of income as you and your spouse retire could prove to be a burden. Opting for a life insurance plan can be beneficial in this case.

What you should do: Opt for a term plan with decreasing coverage. As you pay off your loans, your liabilities would thereby decrease and thus, you wouldn’t require a high amount of coverage throughout.

Conclusion:

Aegon Life offers term insurance plans for those who’d prefer a pure life cover at affordable rates and ULIPs (Unit Linked Insurance Plans) for those who want to grow their wealth while safeguarding the financial interests of their family. If you’d like to opt for term insurance, you can choose the iTerm plan, which provides coverage for up to 100 years. If you’d like to go in for ULIPs, you can opt for the Invest 4G plan and choose from 6 different unit-linked plans, as per your financial goals.

Life insurance coverage is suitable for anyone, at any stage of life. Individuals at varied stages of life can take the wise decision to grow their wealth, build their dreams and nurture the aspirations of their loved ones for a better and brighter future by understanding the important role of life insurance in financial planning.


PRODUCTS

iTerm Plan

Life Insurance Plan with 3 Options to Choose from

  • Life Protect (Life cover till age 100 years)
  • Protect Plus (5% Automatic Increase of life cover)
  • Dual Protect (Protection + Regular Income)
iTerm Plus Plan

Life Insurance Plan with 4 Options to Choose from

  • Life Plan
  • Life Plus Plan
  • Life & Health Plan (10 Critical Illnesses covered)
  • Life & Health Plus Plan (36 Critical Illnesses covered)
iInvest Plan

iInvest Plan with 3 Options to Choose from

  • Increases Your Investment
  • Boost Your Fund Value
  • Withdraw Your Investment
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