I have just finished college and started my new job! The whole life is in front of me. Let me enjoy! Why to worry about insurance and death and health issues when I am so young, fit and healthy?
These arguments look familiar? A lot logical as well, for some of us may be?
Yeah, young age does that to us. Gives us wings, a hope that time lasts forever and it will be a long time before the end comes and that becomes our biggest nemesis! Not only that, when we are young we tend to forget how the body behaves, since it has always been healthy and growing and showing signs of immortality. It’s only after we start to age in our late 30’s or early 40’s when we realise that we are not that active or healthy anymore like we were in the prime of our youth! By then it becomes late as far as our planning for a health coverage plan or life insurance is concerned.
The best time to start thinking about old age and sickness is when you still can, in a rational and stable state of mind. That time is when you’re pretty young, and logically speaking, there is a lot of practical benefit to it as well. The reason you should take a call for the insurance investments before you turn 25 has a lot to do with commercial benefits that you can’t avail at a later age.
Let’s share with you the benefits of making an early decision:
Investing early would mean the companies can offer you a wide variety of coverage plans, which are not available for older people. This would mean more options for you to think about that can take care of not only your life insurance needs, but also health insurance plans that cover diseases associated with age.
Since you start early, the premiums you have to pay towards buying insurance would be very less and would have hardly any impact on your budget or pocket in any manner. It is a highly cost efficient option, even if you have medical coverage by your employer because companies don’t cover you for all possible diseases. Hence, you got to think for your own benefit!
After a certain age, the cost of coverage increases manifolds and by then if you’re not covered by insurance, covering your per-existing ailments becomes impossible. The insurance companies don’t cover an individual with a medical history and only provides coverage for future. That would mean not only you have to pay higher premiums, but also take care of your existing illnesses on your own!
If one thinks that only old age will give problems and therefore insurance should be thought about only after retirement, than he/she is gravely mistaken. Companies have an upper age limit for providing insurance and have every right to deny you an insurance cover after a particular age as per their policies.
Another important benefit of buying insurance this early is that owing to good health, one may not claim any benefits while renewing the policy on a regular basis. This helps in getting cumulative bonuses for the so called ‘good performance’ on the health front! Insurance companies are happy to increase your coverage at no extra price if you don’t make any claims for a particular period.
The best part is the tax benefits you can avail by taking care of your health and planning for your own health and life insurance. You can claim the premium paid towards insurance as a deduction from the total income u/s 80D of the Income Tax Act!
An important aspect while buying insurance should be to consider lifelong renewal. This way you can stay covered and enjoy the insurance benefits throughout your life without paying hefty premiums or worrying too much about the costs of treatments.
It is only one life and it is mandatory to plan it in a way that not only it benefits you, but also your family members. Not only should it make things easier for you, it also takes away the stress from you, of thinking about the medical costs in case something unforeseen happens.
Do make such decision when you’re really young, so that even if insurance money is not utilized for medial or after-death benefits, after maturity of the policy, the money can be used for retirement purposes.
“A smart investment not only helps while you’re alive, but also after you’re long gone! Think carefully and decide immediately!”