Are you too Young to Buy Life Insurance?

Life insurance is one of the most important financial instruments that you must possess. It serves to provide your family the much needed financial security. After all it is your prime responsibility to protect and safeguard your family well being which includes their financial interests too.

A life insurance guarantees you complete peace of mind against the various uncertainties of life. As you do not know how long you are going to live, life insurance acts as a guardian to your family and provides them with the money so that they can maintain their standard of living and fulfill their dreams and aspirations.

Having said that, the important question here is when you should buy life insurance for yourself. Today we dwell on the very issue and try to find out appropriate answers as to what is the right time to buy life insurance. In this regard, it is also important to analyze and find answer to the dilemma that Are you too Young to Buy Life Insurance?

Life Insurance

So let us begin to seek the answers. Here it is important to understand a very basic concept linked to life insurance. First of all, life insurance should never be taken unless you are financially independent. That means that you have completed your education and are professionally qualified to do a job or run a business. So you should not be dependent on your parents. In case you are dependent on your parents, then your parents should have life insurance as your responsibility is directly on them other than you owning a life insurance.

If you have no dependents or are not married or have no plans to get married in the near future too then there is no need to take a life insurance. But this does not apply when you have parents who are dependent on you. If your parents are dependent on you then you can and should have a life insurance with you.

But when you are not married and have no dependents then you have no responsibility to bear and you do not require a life insurance in such a scenario. Even if you have a life insurance and something unfortunate happens to you, then to whom would the life insurance company would pay the amount insured by you in the life insurance policy. There would be no beneficiary of the life insurance taken by you. So in such cases taking a life insurance becomes useless and unnecessary.

Drawbacks of having Life Insurance in Young Age

Let us take an example to make this aptly clear to you. Suppose you are aged 20 years and have a life insurance with you. At this stage of your life you have no dependents to look after including your parents. And you also do not plan to get married in the near future for at least seven to eight years.

So in this phase of life you have the least risk. Still you have life insurance which means that you are paying the premium of your life insurance policy. Though the premium amount would be less as compared to the premium of the policy if you happen to buy life insurance at a higher age, but this is useless.

One, you are missing out the years when you would have the highest risk on your life. Actually insurance companies tend to insure for a limited period say for a maximum period of thirty years. If you have taken insurance at age 20 years the insurance would last only till the age of 50 years. So how would you cover the risk of your life above the age of 50 years?

Second, in case something happens to you at an early age of say 25 years when you are still unmarried and have no dependents, then there would be no one to claim the insured amount of your insurance policy.

Thirdly, you are losing out the opportunity to save money as you are regularly paying the premiums. So your overall savings are reduced.

So, Are you too Young to Buy Life Insurance?  The above discussion brings before you a clear idea when you should ideally go for having a life insurance. The best period to buy a life insurance is when you are about to get married. That comes roughly to an age of 30 years. That way you can easily stay insured up to the age of 60 years or more and that too with by paying comparatively low premiums as at the age of 30 years or so premium rates are less. Thereby you can cover the risks and protect your family’s financial well being for a longer period.

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