It is often said that the right time to buy life insurance is definitely ‘way sooner than you think you should!’
While life insurance is integral to most sound financial plans, the need to save in one amidst increasing uncertainties is pressing. Financial experts believe that the sooner, the better when buying life insurance.
If you have been contemplating and still looking for an answer to “Is there a best time to buy life insurance and what is it?”, then read on!
It is a contract where the insurance company agrees to pay your nominees a pre-determined amount in exchange for premiums. The primary objective of a life insurance policy is to provide financial security to your loved ones in your absence. Life insurance consists of two variants:
Besides, premiums paid are allowable as a deduction subject to compliance of section 80C of the Income Tax* Act. Maturity and Death benefits are also exempted under section 10 (10D) of the Income Tax Act. Hence, life insurance is a multi-faceted product.
Life insurance is necessary, particularly where your loved ones depend financially on you. If you are just starting a family – getting married or planning a kid- this is the best time to buy a life insurance policy. The pandemic has made the importance of life insurance more obvious. Having a life insurance policy serves the dual purpose of securing your life and assuring financial security for your loved ones after your demise.
Saving in a life insurance policy at an earlier stage has multiple benefits:
It is prudent to have your life covered when young. However, as it is rightly said, “Better late than never”.; once you know the need and benefits of life insurance, you must buy a suitable policy at the earliest.
The amount of coverage is important to ensure a comfortable life for your near and dear ones. It is recommended to buy coverage of at least 10 times your annual income.
Additionally, consider the current expenses, standard of living and your family's future requirements. Are your children planning to go abroad for higher education? How much do you want for their marriage? Do you want to save for a retirement corpus? All these questions should be thoroughly assessed to determine the approximate coverage needed.
You also need to account for the loan repayments. You do not want your family to be stuck with EMI payments in case of any eventuality. So, ensure that you include the total outstanding amount of all your financial liabilities in your term insurance sum assured.
Finally, do not forget to factor in the inflation rate.
You can buy an insurance policy by submitting the requisite details and supporting documents to the insurer. The policy may be purchased either offline or in online mode. The offline mode requires you to visit the insurer's office or reach out to your insurer to visit you basis availability. You can also avail of insurance through your Bankers or Financial planners.
On the other hand, the online option allows you to buy an insurance plan at the convenience of your home through a few clicks. The online method is comparatively faster and easier and is gaining popularity. Besides, it supports minimum human interaction, which is recommended during the COVID-19 pandemic.
This is a common question in the minds of many. When it comes to family, you always strive to give the best. Hence, it is important to reach out to a trustworthy insurer. The insurer should be able to care for your family during difficult times. The insurance company should be able to support through a seamless claim settlement process. TATA AIA Life Insurance is one of the reputed names in the insurance industry. It booked a death claim settlement ratio 3 of 99.01% for FY 2022-23.
TATA AIA Life Insurance offers varied insurance solutions catering to specific requirements:
You can also check out our insurance riders that can help you further enhance the coverage and protection of your life insurance policy. Some of the riders# offered by Tata AIA Life are:
The above riders are available with our term insurance and savings solutions. If you are opting for our ULIPs, then you can choose from the following set of riders:
Our health-based riders# not only offer coverage for major critical illnesses but also ensure coverage for COVID hospitalisation and death.
You may visit the insurer's website for the distinct features of each product and rider # . Or, you can contact TATA AIA Life Insurance to understand the associated coverage and the linked benefits. This shall enable you to buy the insurance policy that best suits your needs. Click here to know more.
It is important to have an insurance policy to secure your family’s financial future. Hence, life insurance introduces financial security and stability. Starting early is crucial to reduce the impact of contingencies in the best possible way. Thus, now is the right time to buy life insurance to enjoy a financially secure and peaceful life.
L&C/Advt/2023/Aug/2604