The first paycheck has a significant value and importance in everyone’s life. You would either buy the stuff you were always waiting to buy or you would hand it over to your elders as a token of gratitude. Most of us end up blowing our first paycheck we feel it is important to celebrate the little things in life.
At this juncture, no one talks about life insurance. As a young professional you may end up believing in the biggest myth that life insurance should be purchased at a later stage in life because there is no use of it now, when you are young and healthy.
But the future is unpredictable and we don’t really know what it has in store for us. So it’s better to be safe than sorry.
Here are a few reasons why you need a life insurance plan even at the start of your career:
- Insurance and investment both are equally important:
Sure, investing your money is a big step towards securing your financial goals but what most people tend to ignore is securing the future of themselves and their loved ones. While investment is important, protecting your family is crucial; especially if they are financially dependent on you. You have to take precaution today to prevent your family from going through any financial crisis in the case of your sudden unfortunate demise. Even if you aren’t the sole breadwinner of the family, your loss will still affect their finances. A term insurance plan acts as an income replacement plan that enables your family to live comfortably.
- The earlier, The Better:
Purchasing a life insurance plan early in life is highly beneficial as you get higher life cover at lower premium rates. The premium increases as you grow older. Moreover, a healthy person has to pay lesser premium than a person of the same age with an unhealthy lifestyle. However, if you contract a disease at a later stage in your life but you’ve already purchased a life insurance plans when you were healthy, your premium remains constant.
- Reap Tax Benefits:
Investment in all life insurance products is tax-deductible. As you start earning more, tax-planning will also start becoming prudent.