While life insurance is important at any age, its benefits are maximised when you purchase it at a younger age. Let’s find out more.

Advantages of Buying a Life Insurance Plan at an Early Age

Below are the key benefits of securing life insurance at a young age:

You get to pay lower premiums

Life insurance premium rates are linked to your age, and they increase as you grow older. Insurance companies view younger individuals as lower risk compared to older ones, which is why premiums are lower when you are young.

So, purchasing a policy early helps you secure a more affordable premium that remains fixed throughout the term of your policy. This way, you can save a substantial amount of money compared to the policy bought at a later stage in your life.

Your money has sufficient time to grow

If your life insurance policy includes a savings or investment component, purchasing it at a young age allows your money more time to grow. Hence, by starting early, you give your money the chance for substantial growth, which can lead to a larger maturity amount at the end of the policy term.

Your family’s future is secure

Purchasing a life insurance plan early ensures your family’s financial security in your absence from the very start. It provides them with a safety net and helps them maintain their standard of living. Moreover, securing life insurance early allows you to rest easy knowing that your loved ones will be financially supported.

You enjoy tax benefits

Purchasing life insurance at a young age allows you to enjoy significant tax benefits over the years. The premiums paid are eligible for a tax deduction of up to ₹ 1.5 lakh under Section 80C^* of The Income Tax Act, 1961. Additionally, the maturity benefits of the policy are exempt from tax under Section 10(10D)^*.

Conclusion

Buying life insurance at a young age helps you get lower premiums. It also gives your policy more time to grow if it includes a savings or investment component. Securing life insurance early also allows you to ensure your family’s financial future is protected while enjoying tax benefits yourself. Hence, do not wait any longer and buy a life insurance plan now.