It’s Definitely Wise to Think about Insurance at a Young Age

Early to bed and early to rise makes a man healthy, wealthy and wise…. We all know this and the same is true when one plans to buy a life insurance. Obviously there are advantages of starting early as insurance plans tend to be cheaper at a young age. But Insurance is probably the last thing on one’s mind at this age.

Read more
investent plan
Plans starting from ₹1000/month
tata aia life insurance
loading...
Bajaj Allianz
loading...
hdfc life insurance
loading...
Best Investment Plans
  • money
    Generate wealth with high returns Earn 1 Cr in maturity with Zero LTCG tax
  • tax
    Double tax savings On premiums (under 80C) and on maturity (under 10(10D))^
  • compare
    Compare & choose the best 30+ Plans and 150+ Fund options

Top performing plans with High Returns*

Invest ₹10K/month & Get ₹1 Crore returns*

+91
Secure
We don’t spam
Please wait. We Are Processing..
Plans available only for people of Indian origin By clicking on "View Plans" you agree to our Privacy Policy and Terms of use #For a 55 year on investment of 20Lacs #Discount offered by insurance company
Get Updates on WhatsApp
We are rated~
rating
6.7 Crore
Registered Consumers
51
Insurance Partners
3.4 Crore
Policies Sold

There is a misconception among youngsters that life insurance is something that one needs when he or she gets old or crosses a certain age and income level.

Term Insurance at 20s

One should ideally purchase a term insurance plan in 20s as:

  • Premium will be much lower

  • High disposable income and less liabilities – no dependents like spouse or children, other expenses like home loan or child education or parents’ health, etc.

  • Healthier so easy to get more coverage at less cost, and in some cases without health checks

  • Longer duration of coverage (up to the age of 70 or 75 years) at the same cost

Let’s understand this better with the help of the illustration below:

Say you purchase a term insurance at 25 years, the maximum coverage will be upto 75 years and the premium paying term will be 50 years. So the total premium that will be paid will amount to INR 2,50,000 (INR 5000X 50), considering you purchase a cover of INR 1 crore.

On the other hand, if you purchase a term insurance at 40 years, the total premium will amount to INR 7,50,000 (INR 25000 X 35), assuming a maximum term of 35 years, and cover of INR 1 crore.

One can save approximately 5 lakhs, by starting early.

  Scenario 1 – Starting Early Scenario 2 – Starting Late
Age 25 40
Maximum Tenure 50 years 35 years
Sum Assured 1 crore 1 crore
Average Annual Premium INR 5000+ INR 25000+
Total Premium Paid INR 2,50,000 INR 7,50,000

 

Health Insurance at 20s

Similarly, health insurance premium is also low when one starts early and much costlier once you cross 40. Moreover, no medical tests are required at this age. Health insurance companies typically follow a waiting period of 3-4 years to cover any pre-existing diseases. Ideally this period should be crossed when you are young and healthy. Delaying your decision to purchase a health cover might result in any unfavorable medical conditions later, and this will have implications on the health insurance cover. 

On the whole, the benefits of buying health insurance early are:

  • Low premium

  • Easier to cross the pre-existing diseases clause – as one is healthier at this age

  • Earn no-claim bonuses and other accrual benefits on the policy

  • Possible to extend policy to cover family members like spouse, and children

Normally, one thinks that the group health plan provided by the exiting employers will be sufficient. We, however, suggest purchase of an individual health insurance policy, in addition to the group health cover provided by your employer. Group health plans are useful, but the extent of coverage is usually linked to your designation in the organization, and it lasts only till you are employed with the company. It doesn’t cover all your medical needs, and will not provide any coverage if you resign or if you are between jobs.

It is highly recommended to take the leap when you are young. It may seem a costly proposition at a young age, but this will turn out to be the most rewarding investment for you and your loved ones at a later stage. The right time to buy an insurance is when you start your first job, and not to defer until you reach a certain level in your career ladder or your age graph. The benefits of starting at the right age (=right time) will outweigh any costs considerations that you may have in mind. The mantra is ‘start early and live free’

Past 10 Year annualised returns as on 01-09-2023

^Tax benefit are for Investments made up to Rs.2.5 L/ yr and are subject to change as per tax laws.

*All savings are provided by the insurer as per the IRDAI approved insurance plan.

Tax benefit is subject to changes in tax laws. Standard T&C Apply
~Source - Google Review Rating available on:- http://bit.ly/3J20bXZ

Become a crorepati-1
Invest more get more
capital guarantee
Investment Calculator
  • One time
  • Monthly
/ Year
Sensex has given 10% return from 2010 - 2020
You invest
You get
View plans

Investment plans articles

Recent Articles
Popular Articles
Long- Term Income Plans

11 Sep 2023

Long-Term Income Plans are strategic financial products that
Read more
Max Life Capital Guarantee Solution

28 Aug 2023

Capital Guarantee Solution Plan offered by Max Life insurance, a
Read more
Tata AIA Capital Guarantee Solution

28 Aug 2023

Tata AIA Capital Guarantee Solution is a powerful offering that
Read more
HDFC Endowment Plan

16 Aug 2023

An endowment plan is a life insurance plan that is designed to
Read more
Bajaj Allianz Capital Guarantee Solution

16 Aug 2023

Bajaj Allianz Capital Guarantee Solution is an attractive
Read more
Best LIC Policies For Investment in 2023
LIC Policies for investment are the best option to invest your hard-earned money. As LIC is a government-backed
Read more
Best NRE Savings Accounts for NRIs in 2023
India is a growing economy and is getting a lot of global recognition these days. It has shown immense growth in
Read more
Short Term Investments Options
Short-term investments can be described as temporary investments or marketable securities, which can be easily
Read more
10 Disadvantages of Senior Citizen Savings Scheme (SCSS)
The Senior Citizen Savings Scheme (SCSS) is a popular investment option, introduced by the Indian Government in
Read more
Post Office Monthly Income Scheme - MIS Interest Rate 2023
Post Office Monthly Income Scheme (POMIS) is an investment scheme of the Indian postal service. It promises the
Read more

top
Close
Download the Policybazaar app
to manage all your insurance needs.
INSTALL