4 Reasons Why You Need Life Insurance in College Itself
Life insurance is one of the most important requirements of life. You need a life insurance plan to keep your loved ones financially secured. This is why you need to buy life insurance as early on in life as possible. Take a look at this article to know why exactly you need life insurance early, preferably as early as when you are in college.
1. To Keep Your Parents Financially Secured
Your aged parents may depend on you financially, and most importantly, emotionally. If something happens to you, they will be devastated, to say the least. Getting financial help at such testing times proves to be very helpful. Not only can they take care of the funeral costs, but also use the money to repay any student loan they may have taken for you. It is common for parents to take hefty student loans these days. If the child dies unexpectedly, the death benefit can effectively be used to clear all the financial dues.
Life is very unpredictable. While no one expects to die, the truth is that something unexpected can happen at any time. This is why you need the cover of life insurance. As a young person, you may enjoy hazardous activities such as bike racing or mountaineering. While these are thrilling and age-appropriate, they do carry quite a lot of risk. Get a life insurance plan and cover your life, so that even after your best efforts if something happens to you, your parents will have financial support for the rest of their lives.
2. To Save Taxes
Let us understand this with an illustration. Manish Gupta’s family owned a manufacturing business. He had been helping his father in the business ever since he was in high school. Soon, his father started paying him a salary for his contributions. Now, at 18 years of age and as a fresher in college, Manish earns a handsome salary which is taxable. To save the tax money, his father suggested Manish get a life insurance plan. Manish opted for a ULIP. He got to save tax under Section 80C of the Indian Income Tax Act and also got to make some handy investments.
If you are employed in a family business or you are working part-time to pay for your college, it is a good idea to get a life insurance policy to save tax. Not only will it give you a financial edge, but it will also help you to learn and get a first-hand view of the tax structures and systems. This will prove to be very handy for your future.
3. To Make a Financially Smart Move
A life insurance plan covers your life. In other words, it pays your family financial compensation if you die within the policy period. Death happens due to various factors such as old age, illness or accidents. While accidents and other unforeseen incidents cannot be perceived, other factors such as age and health conditions play an important role in life insurance. An older person is seen to be a riskier candidate for life insurance. This is simply because the chances of him dying within the policy tenure due to age-related issues are higher. Similarly, a person with underlying health conditions has a higher life risk. This is why older and unfit people need to pay a higher life insurance premium.
However, when you buy the policy when you are in college, you end up paying a fraction of the usual premium. This is because you are young and fit. You also do not have too many financial responsibilities. Keeping all these factors in mind, the insurance company offers the life insurance plan to you at a lower cost. You can choose any type of life insurance including term insurance, endowment insurance, or ULIP, and get the same benefits.
So get life insurance and make this financially smart move.
4. To Stay Prepared For The Future
Today you are a teenager who has just started college. You are carefree and enjoying every moment of your life. That is wonderful, but the scenario won’t be the same forever. With time, you will get many responsibilities. You will start working and will have financial responsibilities. You may take a home loan and have to pay that back. You will start a family and will have dependent family members. These are financial liabilities that every person encounters as they go through their journey of life. While these are exciting and enjoyable, they require responsibility and planning too.
You need to get a life insurance plan to cover your financial responsibilities. Rather than waiting to get the plan when you are older and burdened with monetary challenges, get the policy today. The life insurance cover won’t cost a lot of money if bought now. Get a long=term plan, perhaps as long as 30 or 40 years, and keep your future secured.
The Bottom Line
As you can clearly see from all the points and illustrations mentioned above, it makes a lot of sense to get life insurance as a college student. Thankfully, there are many life insurance companies in India that sell excellent life insurance plans. You get different plans at different rates. As a young person, you are tech-savvy and this makes it convenient for you to get online life insurance plans. Make use of all these benefits and get life insurance right away!
When you buy life insurance, keep the crucial points of coverage and tenure in mind. Do your math and plan ahead. Choose a coverage amount that is large enough to repay loans, take care of dependent family members, etc. Also, keeping your age in mind, choose a suitable tenure. Ideally, look for a long tenure of three or four decades. Do not be in a hurry to buy life insurance. Do adequate research and then get a good plan that will offer the benefits listed above. Be wise and insure your life insurance in an easy and smooth manner!