How age plays an important role in your insurance buying decision

Published: November 3, 2018 12:34 PM

There are a plethora of insurance plans available in the market, and most financial experts advise that it is very important to have these insurance policies in place, at the right age.

The health insurance plan can be further enhanced by adding riders, including critical illness cover, maternity cover, etc.

By Vaidyanathan Ramani

In today’s fast-moving life, it is best advised to get everything insured to avoid any unexpected loss. However, many people feel that having insurance is like carrying an umbrella along all the time. No doubt, it may be an extra burden most of the times, but yes, won’t you feel glad when it rains? The umbrella is there to protect you! In the same way, a right insurance policy is the key to a healthy and prosperous financial life.

There are a plethora of insurance plans available in the market, and most financial experts advise that it is very important to have these insurance policies in place, at the right age. While purchasing an insurance plan, it is always important to keep in mind your specific situation and several other factors.

Here, we have briefly explained which insurance plan is important for you and at what age you should purchase them. As you read through, do remember that insurance policies are largely personal and as your life changes, so must your coverage!

Life insurance is one of the important insurance plans to buy in your 20s in order to protect yourself against unexpected risks. The key benefit of purchasing a term insurance plan at a young age is lower premium rates. Anyone purchasing a term insurance at the age of 25 is supposed to pay a premium of Rs 7,000 for a period of 30 years, while someone taking the same policy at the age of 30 pays a premium of Rs 9,000. Health insurance is another vital insurance plan that you must take at this age. With the sedentary lifestyle we follow today, the chances of getting a lifestyle disease are quite high. Moreover, an accident can occur at any time and any place. But with the right health insurance plan, you are effectively covered for years for the treatment of any lifestyle disease or accidental injury.

The health insurance plan can be further enhanced by adding riders, including critical illness cover, maternity cover, etc. Often people in their 20s feel the urge to own a car or a bike and it is very important for them to understand that getting a motor insurance is as important as getting a Driving Licence to drive that car or bike. The premium rates for both four-wheeler and two-wheeler insurance totally depend on the age, make, model and engine capacity of the vehicle.

As you enter in your 30s, life usually begins to settle down and your priorities tend to shift with career and family taking the top position. And with these great priorities come extra responsibility. To best take care of yourself and your family, make sure that you stay covered in a few important areas. namely – Health Insurance, Life Insurance, Disability Insurance and Home Insurance.

Without a proper insurance, adequate healthcare in India seems unaffordable for many. And in case you skipped buying a health insurance in your 20s, don’t skimp now. Do not ever make the mistake of going for bare minimum, rather find a substantial policy that works best for you and your family. Like life and health insurance, home insurance is also equally important. While taking a home insurance, it is very important to tally up all your valuables accurately so that you get the best value.

As you set in your 40s, you are more prone to many illnesses that usually come with the age. Moreover, in your 40s, good health cannot be guaranteed even by exercising or eating just healthy food. Your family would also have grown, and if you buy a family floater medical insurance plan, it will certainly help you. For complete protection, you can also add various add-ons and riders like critical illness, restoration, OPD cover and many more to your health insurance plan. Most of these policies pay the total sum assured in lump sum on diagnosis of a critical ailment.

As a policy seeker, you can always choose the most suitable plan that best suits your requirements and covers the premedical history. However, it must be noted that buying a health insurance policy at this age calls for a higher premium.

-The writer is Head Product and Innovation, Policybazaar.com

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