Health and Life Insurance: An Early Age Boon
If you are in your twenties and are single without any dependents, then you may have the mindset that investing in an insurance policy is not important for you as you are young. However, nowadays, more and more people understand the importance of having a life insurance and health insurance policy at an early age. It is a must-have thing in your investment or financial portfolio through which you can save money and can get good returns as well. The idea of buying the policies after marriage or later may be obsolete. With this article, you can easily understand the importance and benefits of buying a health insurance and life insurance policy at an early age.
Talking about health and life insurance, both sectors carry their own importance. There is no doubt in saying that the constant changes in the environment, lifestyle and pollution is affecting a lot of people. Thus, securing every important aspect of our lives is very crucial. Starting with health, we know that things are changing rapidly and so does our health and its related issues. The numbers of critical diseases are growing on a daily basis and to suffer from low-level diseases that require hospitalization and all has become a normal thing, but fighting against a disease is very difficult because of the inflation in healthcare costs. To fight the inflation in healthcare costs, all you need is an effective health insurance policy that offers wide coverage and that can help you to deal with unwanted medical emergencies. With the help of an effective health insurance plan, you will be able to fight medical emergencies and can get quality treatment on time without paying a penny from your pocket. Thus, buying an effective health insurance plan is always a wise decision and it can also help you in tax saving under segment 80D.
Life insurance is not just limited to providing needful protection, but can also help you as an important tool for financial planning and meeting one’s life goals. These goals can be related to your child’s education, wedding planning, purchasing a home or car, retirement planning for one’s self, etc. Also, make sure that post-retirement, you have protected your wealth so that you will not lose what you gained during pre-retirement. Try and invest in equities to get high returns during your early working life and as you move towards retirement age, transfer the holdings to debt ULIPs to safeguard the maturity corpus from any unfavorable market movements.
Why Should You Buy Health & Life Insurance at a Young Age?
1. Paying a lower premium
If you invest your money in health and life insurance, then there is no doubt that you can get these policies by paying a lower premium. The fact is that if you invest in such policies at an older age, then you have to pay twice as much as you can get them now.
Many of the health insurers won’t entertain you in an old age and if they do then the charges of the policies will be higher. Moreover, in life insurance as well, insurance companies will hesitate to insure you and may charge twice the price that you would pay at an early age.
2. Tax benefits
If you invest your money in a health insurance or life insurance plan at an early age, then you can get tax benefits as well that result in huge savings. Buying a health insurance policy at a young age will allow you to get tax benefits for a longer period as you can claim the premium you pay as a deduction from your total income under 80D of the Income Tax Act, 1961.
With life insurance, the policyholder is liable to get tax benefits under section 80C/80CCC & 80D/80DDD.
3. Lifelong renewal
By investing your hard-earned money in health and life insurance at an early age, then you will get the option of a lifetime renewability of policy and thereby you can attain extended coverage. Moreover, you can enjoy the available benefits for the long term.
4. Financial planning
Buying a health insurance and life insurance policy at a young age will offer wider coverage to you and also help you in planning your finances in a better way. With adequate coverge for yourself and your family, you can easily focus on other investment options as well.
5. Comprehensive coverage
If you make the wise decision of buying a health insurance policy when young, you can enjoy the benefit of comprehensive and holistic coverage. You will, therefore, enjoy greater security during employment and even after retirement.
If you’re in your twenties and really want to invest in health and life insurance policies, then you can use the help of an online insurance web aggregator to get the best plan for yourself. With this assistance, you can compare quotes from top insurance companies and can get the best plans within your budget.
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