A Swiss Re Sigma study1 expects India to soon be among the ten largest insurance markets globally. However, life insurance penetration in India is not very high. According to reports3, it was only 3.2% in the financial year 2021. You might wonder why, and rightly so!
Many people associate life insurance only with emergency planning, and they see life insurance as a financial provision useful only in the face of unfortunate events. While this might be partly true, life insurance has other important roles to play, making it a versatile addition to your investment portfolio. What’s more, no matter what stage of life you are at, life insurance is a great foundation for financial planning and investment. When you realise life insurance is an independent option that promotes stability, self-reliance, and above all, peace of mind, it puts everything into perspective.
Why is Life Insurance Essential at Every Stage of Life?
In Your 20s
This is the age when most people taste financial freedom for the first time. You may have started your first job or set up your first business in your 20s. Like most people, you begin to shoulder responsibilities for the first time, taking care of yourself and your loved ones.
At this stage, purchasing life insurance helps create a foundation for financial planning. With that foundation in place and your loved ones’ future secured, you can focus on other forms of investment.
However, we know that many of you are often unsure of where to start. What’s the best policy? And how much do I invest in such a policy? This guide will answer many such questions:
- Term insurance provides financial security to your loved ones in the face of unfortunate events. A term insurance plan such as the Future Generali Express Term Life Plan takes away your worries.
- A unit-linked insurance plan (ULIPs) offers you the option to invest in market-linked investment avenues and earn attractive returns. ULIPs also help you start defining your financial goals, such as buying a car, your first home, a world tour, etc.
- Similarly, health insurance is critical since it provides financial security during medical emergencies. A comprehensive health insurance plan such as the Future Generali Heart & Health Insurance Plan is always a bonus in your 20s.
In Your 30s
In the thirties, many of us start to settle down in our careers and lives. Many start their own families, buy their own house, and take steps to make stability a reality. Hence, financial responsibilities usually increase, and life insurance becomes even more important at this stage. If you are in your thirties, you must consider the following strategies:
- Buying into a term plan for the long-term financial security of your family
- A unit-linked plan, endowment plan, or a money-back plan to create a corpus for your larger financial goals
- Opting for a child insurance plan if you have a child, such as the Future Generali Assured Education Plan, which secures your child’s education through school and college
- Subscribing to a health insurance plan that protects your savings in a medical emergency
In Your 40s
As you enter your 40s, you may have already achieved some of your goals. For instance, you may have secured a corpus for your child’s future or bought a house for your family. This is the stage when you often focus on building wealth for yourself and your family, concentrating on your health, and ensuring your family’s future is secured. This is also a time when planning for retirement becomes a priority. At this point, the following life insurance plans become highly relevant:
- A term insurance plan if you have not invested in one already
- A health insurance plan for unforeseen medical emergencies
- A unit-linked insurance policy to create a financial corpus for your goals
- A deferred pension plan is a must to start planning for a comfortable retirement—a plan that allows you to save for a worry-free post-retirement life, the truly golden years!
In Your 50s
As you edge towards retirement, planning a retirement corpus takes centre stage. At this stage, your responsibilities are usually taken care of, and you can direct your savings towards retirement and estate planning. Here are some life insurance plans suitable at this stage:
- A ULIP, endowment, or money-back plan to create a solid corpus
- A deferred pension policy to accumulate a retirement corpus
- A health insurance plan also becomes important with rising age, where financial protection is essential in a medical emergency.
During retirement, everyone wants a comfortable life with sufficient funds at their disposal. At this stage, an immediate pension plan comes in handy. This policy releases guaranteed pension amounts lifelong and helps create a source of regular income.
Life insurance plans come in different forms, and each form offers a unique solution to meet the various financial goals you have at the different stages of your life. No matter what stage of life you are in right now, you can find a suitable life insurance policy. Future Generali India Life Insurance has life insurance and savings products designed to meet the needs of every individual. Click here to read more about the plans and policies on offer and speak with our trained and trusted life insurance advisors today!