Life insurance is easier and more affordable than you think

With lives becoming more competitive and lifestyle patterns changing faster than ever like marriage, buying a house, children’s education, and retirement make it necessary for our financial plans to evolve in order to meet these objectives within prospective timelines. However, many times, the focus on ‘wealth creation’ makes ‘protection’ take a backseat. It is unfortunate that we don’t realise the importance of adequately insuring our lives for the financial security of our dependents, that life insurance must assume vital importance and other aspects of financial planning should follow.

A life insurance policy is an investment that financially secures you and your family, against any uncertainty. It is a cover that takes care of the financial needs of people who are dependent on you if something happens to you. It is also one of the basic financial instruments that everyone needs to own. While there are several wealthy people who heavily invest in this instrument, it is equally important for people in different strata of life to invest in suitable life insurance plans.

Life insurance it's better to be 5 years too early than 5 minutes too late.

If you have loved ones who depend on you financially, you must consider term life insurance that provides income replacement in case of untimely death. If you are a business owner, life insurance can help your loved ones pay off your business debts, estate taxes, or fund a buy-sell agreement. Also, is you have a co-signed student loans or credit cards, a term plan can cover the cost of your debt, so you do not pass it on to your heirs. Similarly, people with kids, single parents, affluent individuals - life insurance can offer peace of mind to people of nearly all ages and life situations.

Here is a closer look at why life insurance must be the first step toward financial planning:

Life insurance often gets the least priority in our financial planning; however, it is essentially one of the most economic and important investments one can make. Life insurance is not a product with quick or immediate returns but a scheme that covers your risks. It also offers protection to your loved ones, in case of any uncertainties. Low premiums, tax benefits and bundles of add-on benefits make life insurance more attractive. But the key takeaway must be that everyone needs life insurance. Whether you enjoy an opulent life and want to secure your wealth or have a family to support who can rely on the financial backing, life insurance is one of the most under-rated investments that needs your attention.

Which plans do we choose?

Now that we know the importance of life insurance, the question of making the right choice arises. The one-time investment plans or annual payment term insurance plans are a great tax-saving instrument that helps to secure your investments and protect your family. However, the biggest issue that people with lower-income face is the difficulty in making high-premium payments. However, there are different types of life insurances with comfortable premium payment options that are suitable for people in different earning spectrums. Since making lump-sum payments may seem like a burden, choosing life insurances with smaller monthly payments is a great way of making this burden much lighter.

The right time to invest

While we know that life insurance indeed is a necessity for everyone, it is important to know the best time to invest in a life insurance. Choosing a simple life insurance plan at a young age plays a monumental role in determining the premium costs that we incur. Since the age factor is crucial in deciding premiums, people with lower-income who select a monthly investment plan in their 20s are bound to pay lower premiums than those in their 30s or 40s. As we grow older, the importance of life insurance in our investment kitty also increases. So, the right time to invest is always now!

There have been a lot of myths around investments that we have grown up with. The idea that life insurance is for the rich is one such myth, which has been popularised over a long time. What we need to remember is that life insurance is a necessity that everyone benefits from. While the reason behind choosing life insurance may be different for different people, the need for life insurance remains constant.

We help facilitate the discussions that need to happen. We recognise and understand family conversations about financial planning can often be emotional and how vitally important they are to help enhance financial wellbeing of your family and loved ones.