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You have just started working, no family, parents are still earning and hence, not dependent on you. You are young and fit – life insurance is surely not what you need to think about. Afterall, life insurance is needed for your dependents if there is the unfortunate event of your untimely death. Not only do you not have dependents, but who wants to think of death at 25?!

While this is true, its also a fact that the earlier you take on an insurance the cheaper it is. Think of it like a discount for being young and fit.

Is that reason enough? I would think so. Hopefully, the numbers below will help you understand. This applies not only on life insurance but also on medical insurance. For the latter especially you needn’t wait till you have dependents.

Low cost means more saving – The life insurance you take today can be continued at the same price for its entire term of 30-35 years. The same cover taken ten years on will mean a much larger premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More and that will eat into your future savings. Take a look at the kind of difference in cost you are looking at.

Let’s say your salary now is around ₹10 lakh a year; at the age of 30, if you take a simple term life cover (this is the only type of life insurance that matters) worth ₹75 lakhs sum assuredSum assured is the amount you are insured for. In case of insurance for inanimate objects, the sum assured is what you will get and reduces as goods age or their depreciated value changes. In case of life insurance, there... More, you will have to pay a premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More of anywhere between ₹7,000-9,000 ( for women and ₹8,000 – ₹10,000 for men) a year depending on the life insurer and the policy details.

This policy will be valid till you are 70 years old.  This is really the cost of two Saturday night outs in a year!

Fast forward 10 years – at the age of 40, the same cover or sum assuredSum assured is the amount you are insured for. In case of insurance for inanimate objects, the sum assured is what you will get and reduces as goods age or their depreciated value changes. In case of life insurance, there... More of ₹75 lakhs, will cost ₹12,000 -15,000 annually for men and ₹11,000 – 13,000 for women. Except, by then you will need a greater sum assuredSum assured is the amount you are insured for. In case of insurance for inanimate objects, the sum assured is what you will get and reduces as goods age or their depreciated value changes. In case of life insurance, there... More as you may have dependents in the form of your spouse and children or aging parents. If you double the sum assuredSum assured is the amount you are insured for. In case of insurance for inanimate objects, the sum assured is what you will get and reduces as goods age or their depreciated value changes. In case of life insurance, there... More, the premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More payable also doubles.

Rather than waiting till your dependents arrive, take a life insurance policyAn insurance policy gives you the right to reimbursement or payment from an insurance company for losses agreed up on in a defined contract. A life insurance policy for example, needs the insurance company to evaluate a claim on the... More early in life and then keep topping it up every 5 or 7 years as your income and dependents profile changes.

Secondly, the later you take on life insurance, the greater the risk of lifestyle ailments impacting your premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More. STARTING EARLY MEANS SAVING COSTS. Which in turn means more money of investing and wealth creation!

Will I get the premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More back?

The idea that you are paying for something you may never get any return from is quite unpalatable in our society. Just like many people consider paying rent as money down the drain, many feel that paying an insurance premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More and not dying is also money (premiums paid) down the drain.

As a result, many of us look for insurance plans that double up as investments. Read this article to know why you shouldn’t do that.

This is really not the right way to think about insurance while making your choice.

You could think of opting for a term life insurance policyAn insurance policy gives you the right to reimbursement or payment from an insurance company for losses agreed up on in a defined contract. A life insurance policy for example, needs the insurance company to evaluate a claim on the... More with return of premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More, but guess what the premiumThis is the amount you pay for keeping an insurance policy active. Usually paid in a lump sum at the start of the policy term or annually through the term, it includes all the charges and levies by the insurance... More you have to pay for getting the same cover doubles! Remember, everything comes at a cost. 

This is another reason to start your life insurance policyAn insurance policy gives you the right to reimbursement or payment from an insurance company for losses agreed up on in a defined contract. A life insurance policy for example, needs the insurance company to evaluate a claim on the... More early and get the maximum possible cover so that you lock it in at the lowest possible cost. Doing this will mean you are –

• Better prepared
• Save on costs
• Have more money left to invest
• Are not concerned about not making a return, as the cost is so low!

It’s really a win-win to start early. With all the digital platforms and cheaper online term life insurance policies offered by insurers, not taking one doesn’t make sense. The online policy is easy to choose and is cheaper because there is no embedded agent commission in the product.

Be smart. Be prepared. Be insured.

There is no such thing as too early for a pure term life insurance; if you are earning you should be insured. But keep in mind, its only TERM life insurance policyAn insurance policy gives you the right to reimbursement or payment from an insurance company for losses agreed up on in a defined contract. A life insurance policy for example, needs the insurance company to evaluate a claim on the... More that you need.