30’s is one of the best times to buy insurance | Aviva India

30’s is one of the best times to buy insurance

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Your 30’s can be a time of exciting possibilities as you have officially hit the next age milestone in your life. However, this also ushers in a time where you need to shoulder greater responsibility with the best parts of your life potentially still left ahead of you.

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This is essentially a time when you need to make healthy lifestyle choices a habit as it’s essentially going to define your financial health for the rest of your life. Ideally, saving money should commence right from the time you start earning, but even after turning 30, all is not lost. 30’s are an interesting age because you’ve probably settled into your career thus tend to be financially independent. But this is also an age where you need to seriously start having to look at the prospect of upcoming responsibilities.

Also Read: How to Save Money- Financial Planning in your 50’s?

Your 30’s is when your responsibilities increase and with that, the possibility for unexpected costs also goes up which can drastically impact your finances. This makes the need for saving and investing extremely crucial because no matter how lucky you might consider yourself, saving for a rainy day is essential while the sun's out, and your 30s is just that time. You might be about to invest in a house or start a family and this makes the need for life insurance absolutely paramount.

Also Read: How to Save Money- Financial Planning in your 30s?

Regardless of what you think about Life Insurance, the fact remains that you need adequate life insurance especially if you have loved ones who depend on you. Having insurance is quite similar to carrying an umbrella with you all the time: you might not need it most of the times but when it rains, you will be glad that you have one with you. If the worst were to happen, having a life insurance in place would at least help your family cope financially without you. We have highlighted some of the primary benefits of having life insurance when you’re in your 30’s.

1: Existing financial liabilities

Life is unpredictable and keeps throwing unexpected surprises at you, without any prior warning.

Generally, when you hit your 30s, many people are married and planning for kids. Although your income might rise owing to your work experience, so much more happens during this exciting chapter of life. Not only do you need to handle your funds judiciously, you also have financial liabilities like a car loan, housing loan, personal loans to deal with as well. In buying life insurance now, you will have the peace of mind knowing that your family has a financial cushion to protect them from the unexpected.

2: Low Premiums Charged

Life insurance premiums are directly correlated with your age which basically means that premiums for a life insurance policy tend to be very affordable when you’re young as you’re probably healthy. But they tend to increase with age as the chances of you acquiring any medical conditions subsequently increase as well. Moreover, there are several top-notch plans out there which come with benefits such as in-built terminal illness benefit, life cover that doubles on accidental death along with a return of 120% of all premiums which will be paid on maturity. This not only translates into long-term savings but also ensures your dependents have something substantial to bank on in the event something goes terribly wrong.

3: Supporting Your Loved Ones

If anybody relies on you for your income, then you need to have life insurance. In your 30’s, the likelihood of having dependent parents is quite high. Moreover, if you have kids, your little ones rely on you for everything. If something untoward were to happen to you and if you haven’t arranged for your family to carry on financially in your absence, your surviving family members might struggle to even cope with day-to-day expenses. A life insurance policy with an adequate coverage amount is what your family deserves and there’s no time like the present to start planning.

4: Best time to buy a child plan

When you're young and single, you might think you don’t need life insurance but the entire scenario changes when you have a kid. The 30’s is the time when the likelihood of you having a kid increases manifold and thus proves to be the ideal time to invest in a child plan which is specially designed to meet the educational and other needs of growing children.

5: Savings as Tax Benefit

It doesn’t matter whether you’re a salaried employee, a business owner or a freelancer; income tax is applicable to one and all. Life Insurance not only safeguards one’s family but is also a great tool for tax planning & savings. Premiums paid for life insurance provide tax benefit under Section 80C while you're also entitled to receive tax benefits for the maturity amount under Section 10(10D). *

*Taxes are subject to change as per prevailing tax laws

AN Nov 03/17

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