Why you should start investing in insurance at an early age

Posted on Mar, 2021

India is currently host to the largest youth population in the entire world. According to the 2011 census, 28% of the total Indian population constituted youth aged 15-29 years who contributed over 34% of the total national income. In 2021 too, the Indian population is dominated by the youth, contributing significantly to economic growth.

However, youth’s common tendency is to live from paycheck to paycheck, thinking that it is too early to start saving and plan for the future. It is only after they become financially independent and start a family that they regret not buying insurance earlier when it was available at a cheaper premium. When it comes to financial planning, the earlier you start, the better. The first and foremost step in successful financial planning is investing in a comprehensive Insurance policy.

Isn’t Insurance for Older People?

Insurance is for everyone, and everyone should have insurance. It is a common misconception that youth should not worry about insurance policies and financially protecting their future. However, the fundamental formula for insurance policies’ success is time: the more time you will give to your policy, the more protection it will provide. If you buy insurance earlier in life, you are a lower risk to the company than someone older, with higher liabilities and expenses. Furthermore, your investment towards net premium pay would be lower when you buy insurance at a younger age.

No Age is Early to Buy Insurance

The moment you start earning and have a stable income source, you should also buy a comprehensive insurance policy. Here’s why:

  • Better Financial Planning:

    Once you have completed the first step of financial planning by buying an insurance policy, you can be sure that the policy will financially take care of your family in case of any eventuality. As you would know that your medical expenses are covered, you can further secure your finances through diversified investments.
  • Lower Premium Amount:

    As you are more prone to diseases as you get older, you will have to pay a higher premium if you do not buy insurance at a younger age. For example, the policy that costs you a 4-digit amount at 25/30 years may cost you a 5-digit or even double amount at the age of 40.
  • Better Claims:

    When you buy insurance policies at a younger age, you can ensure that in most cases that your claims will be accepted. As you get older, the possibility of health issues increases, increasing the chances of the insurance company rejecting your claims or paying only a percentage of the expenses incurred. Hence, you end up covering fewer expenses and paying more.
  • Extensive Coverage:

    When investing in insurance at a young age, you have the option to significantly customize your insurance policy through different riders such as accidental death benefit rider, critical illness rider etc. You can get the highest sum assured with the lowest premium possible to get extensive coverage when starting early.
  • Health Benefits:

    Comprehensive Insurance policies such as health insurance added with riders cover expenses of critical diseases, mostly seen after 35 years of age. When you invest in an insurance policy at an early age, you can ensure that the policy will provide financial protection if you suffer from serious health problems.

Now that you have started earning, one of the wisest life decisions you can take would be to invest in an all-inclusive insurance policy. You can choose from a wide range of options, including life insurance, term insurance, health insurance, motor insurance etc. Once you have financially secured every aspect of your life, you can move ahead in your quest to secure a burden-free financial future for yourself and your family.

PINC Insurance is the ideal place to buy comprehensive insurance policies for youth who want to jump-start their financial planning with the most suitable investment. PINC Insurance ensures that you access a wide range of insurance products and attain full-fledged financial protection.