Updated on: Wednesday, May 29, 2019, 11:15 PM IST

Do it now! Sometime later becomes never


People postpone buying term insurance until they are married or have kids. Buying term insurance early protects your loved ones from any financial liabilities that your unfortunate passing will bring on them. Do you feel you should start saving for retirement? How about buying a term insurance cover now? Are you matching your Tax Saving targets? If the answers to all these questions are positive, you are one of the smarter investors on the planet. However, if not, you are leaving a lot to worry about later. Procrastination costs a lot, especially when it is about investments. Just consider this simple and famous example.

Example One (Basic Life Cover)

Name: Mr Rakesh Gupta (30 years old)


For a cover of Rs 1 Crore for 30 years, Mr Gupta must pay Rs 737 per month or Rs 8378 annually.

Now, let us assume that Mr Gupta did not invest in any of the life insurance plans until he was 40. How will the data look?

Example Two (Basic Life Cover)


Name: Mr Rakesh Gupta (40 years old)

Wants to buy insurance at the age of 40.

For a cover of Rs 1 Crore which he will receive by the end of the term tenure that is the 20th year, he will pay a premium of Rs 1173 monthly or Rs 13332 annually.


Do you notice something jarring? With the increase in the age of the person, the premium amount also increases; The same increase in premium rule applies to the premium for health insurance and Term Insurance plans.

Health insurance helps in covering the medical treatment of your family or dependents whereas, term insurance helps you in securing the life of your dependents after your disability or demise, through monthly income plan or a lump sum amount. There is an increase in premium with the rise in the age of a person. There are many reasons for this increase in the premium that the insured pays. Let us know about those factors.


With the growing age, you tend to grow weak and unhealthy. This health condition makes it more prominent that you will lose your life sooner. When you buy insurance at a younger age, insurance companies must bear minimal risk and therefore, the cost of the premium is lesser. With an increase in the age, the risk increases. Hence, the insured pays a higher amount.

Health and Lifestyle

The premium also differs considering the fact whether the person smokes, consumes tobacco, has a chronic disease and so on. Someone who does not consume tobacco and has no history of any chronic illness will pay a lesser premium compared to those who have an unhealthy lifestyle.

Save Tax

When you buy insurance early, you start saving your tax. This way, till the time you attain retirement, you will save enough, and on the other hand, you have the corpus at your disposal. When you start early, you save more.

The premium fluctuatation depending on various factors. It is advisable that you get an insurance plan which is a necessity and waiting to serve you at the right time. You should not postpone the idea if buying an insurance plan because you feel you are too young to buy one. No one is young to invest in insurance. Even if you are in your twenties, you can invest if you are smart. At times, delaying buying insurance kills the benefits that you can enjoy. Moreover, life is unpredictable, and you never know what happens and when something unexpected hits you and your family hard. Instead of regretting the decision later, you can start investing now.

Early Investment for Saving

As they say, it is never too early to invest. Insurances are life-saving tools that help you get rid of several financial problems. With so many benefits that you can get by investing at a young age, why delay the process and make it more expensive for you? What more! You get more corpus, and at an age when others are spending and unable to save, you are investing and doing future planning that makes your every day stress-free.

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Published on: Monday, March 26, 2018, 05:58 PM IST