Getting the first paycheck is a proud and happy moment for many of us; with the paycheck come the plans for making several purchases for yourself and gifts for your dear ones. If you are someone who is at an early stage of your career or have started earning at an early age, here’s a gift that can truly benefit your loved ones - a life insurance policy.
 

Most of us think that life insurance can be bought later in life. While that is certainly possible, starting a life insurance policy at an early stage of your career has its own set of benefits. Let's look at some of them.
 

Why buy life insurance in the early stages of your career?
 

1. Lesser premiums – More coverage

This is one of the advantages of starting a life insurance policy at the start of your career. Life insurance companies take various factors like the age, health conditions, etc., of the insured into account while calculating the premium for their life insurance policy.
 

When you start early, the premium you would need to pay is less as opposed to the premium you would have to pay if you were older. You can also get the benefit of availing more sum assured at a lesser premium.
 

Also, when you buy a life insurance policy at a young age but are diagnosed with a disease at a later age, you need not worry about paying enhanced premiums. When you are in your twenties and early thirties, you usually do not have health issues, and hence while taking a life insurance plan, you are charged less premium because you are at lesser risk of health complications.
 

You can also choose riders^# such as the critical illness benefit rider^# to enhance your plan’s coverage.
 

2. Plan for Uncertainty

We never know what the future will bring. Hence you need a life insurance plan to support you as early as possible. Many life insurance companies provide affordable life insurance for young adults. By taking such affordable plans, you are protecting your family from any unfortunate event. In such cases, the life insurance policy could be of great help to your loved ones.
 

If you are in your early twenties or thirties, some companies offer whole life insurance plans for young adults. A whole life insurance plan will cover you for your entire life until your demise, thereby sealing your family's financial safety net.
 

3. Allow time for your money to grow




One of the benefits of taking a life insurance policy at a younger age is that you can afford to take up risky investments that also offer apt returns.
 

If you buy a life insurance at a young age, the plan will allow enough time for your money to grow, thereby helping you reap better financial benefits at an older age.
 

For example, if you start investing in a savings plan between the age of 26 – 30 years and pay your premiums until the age of 60 years, you can accumulate wealth for a period of at least 30-35 years. This results in building a good corpus for your old age, which could fulfil your retirement needs as well as your family’s dreams.



4. Reap tax* benefits till your retirement

You can claim tax* benefits on the premiums paid towards your life insurance savings policy under Section 80C of the Income Tax Act. If you buy a savings plan, then you can continue saving more by claiming tax* benefits.
 

You can claim up to Rs 1,50,000 as a deduction in taxable* income under Section 80C for any premiums you pay towards a life insurance savings plan. Additionally, maturity payouts, bonuses², additions etc., paid under a life insurance savings plan are completely tax^*-exempt under Section 10(10D).
 

The death benefit paid to the nominee is also exempt under Section 10(10D).
 

Hence, use these plans wisely to save as tax* and also build wealth over time.

Summing it up

Buying a life insurance savings policy at the early stages of your life ensures that you can secure your family’s financial health as early as possible. Purchasing a suitable life insurance policy can help you reap several benefits.
 

You can check the Tata AIA Life Insurance to browse through term insurance, savings solutions, wealth solutions, retirement plans and much more!

L&C/Advt/2023/Feb/0355