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 an integral part of most sound financial plans, the need to invest in one amidst increasing uncertainties due to the ongoing COVID-19 pandemic is pressing. Financial experts believe that when it comes to buying life insurance, the sooner, the better.
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!
What is a Life Insurance Policy?
It is a contract, where the insurance company agrees to pay you or 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.
Commonly available life insurance plans in India are:
Term Insurance: It is a pure insurance product that provides a financial cushion to your family in the form of death benefits.
Unit Linked Insurance Plans (ULIPs): ULIPs allow capital appreciation through market-driven growths.
Guaranteed(1) Income Plans: These plans provide maturity benefits, irrespective of the market performance. The assured returns help save for your future financial goals.
Retirement Annuity Plans With Life Cover: The policyholder pays regular or lump-sum premium and in turn gets regular payments from the pre-determined date.
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.
When is The Right Time to Buy a Life Insurance?
Life insurance is a necessity, more particularly where your loved ones are financially dependent on you. If you are just starting a family – getting married or planning a kid, then this is the best time for you 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.
Investing in a life insurance policy at an earlier stage has multiple benefits:
1. Affordable Premiums. Buying insurance in earlier years allows you to enjoy modest savings through lower premiums. Besides, as age advances, the probability of having health problems increases. This, in turn, increases the cost of the insurance.
2. Longer Duration. Societal norms are currently changing. Many prefer settling down and having kids at a later age. Moreover, home loans span over a longer duration.
Hence, it has become important to consider insurance plans for a longer duration. This again hints at the need of starting the policy coverage early.
3. Corpus Over Time. Staying invested for the long term allows your money to grow. You can enjoy market-linked returns through ULIPs. It can help in the gradual generation of wealth. Thus, it has the potential of meeting long-term objectives like creating a retirement corpus.
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.
How Much Life Insurance Do You Need?
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, take into account the current expenses, standard of living and the future requirements of your family. 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.
How to Buy Life Insurance?
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 online mode.
The offline mode requires you to visit the office of the insurer 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 with a few clicks. The online method is comparatively faster, easier, and is gaining popularity. Besides, it supports minimum human interaction, which is currently recommended during the COVID-19 pandemic.
Tata AIA Life Insurance Policies
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 take care of 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.
TATA AIA Life Insurance offers varied insurance solutions catering to specific requirements:
Protection Solutions: It provides pure protection through a term insurance policy.
Wealth Solutions: You can opt for ULIPs to enjoy insurance and market-linked benefits.
Savings Solutions: These plans offer protection and investment solutions. The investments are independent of the performance of the stock market.
Retirement Solutions: It helps you plan for a peaceful retired life while safeguarding your family from adversities.
Tata AIA Life Insurance Riders(#)
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:
Tata AIA Life Insurance Waiver of Premium Plus Rider (UIN: 110B029V02)
Tata AIA Life Insurance Non-Linked Comprehensive Protection Rider (UIN: 110B033V02)
Tata AIA Life Insurance Non-Linked Comprehensive Health Rider (UIN: 110B031V02)
Tata AIA Life Insurance Accidental Death and Dismemberment (Long Scale) Rider (UIN: 110B028V03)
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:
Tata AIA Life Insurance Waiver of Premium Plus Linked Rider (UIN: 110A025V02)
Tata AIA Life Insurance Waiver of Premium Linked Rider (UIN:110A026V02)
Tata AIA Life Insurance Accidental Death and Dismemberment Linked Rider (UIN: 110A027V02)
Tata AIA Life Insurance Linked Comprehensive Health Rider (UIN: 110A031V02)
Our health-based riders not only offer cover for major critical illnesses but also ensure coverage for COVID hospitalization and death.
You may visit the website of the insurer for the distinct features of each product and rider. Or, you can get in touch with a TATA AIA Life Insurance professional for understanding 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 for securing 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.
Insurance cover is available under the product.
The products are underwritten by Tata AIA Life Insurance Company Ltd.
The plans are not a guaranteed issuance plan and it will be subject to Company’s underwriting and acceptance.
For more details on risk factors, terms and conditions please read the sales brochure carefully before concluding a sale.
This blog is for information and illustrative purposes only and does not purport to any financial or investment services and does not offer or form part of any offer or recommendation. The information is not and should not be regarded as investment advice or as a recommendation regarding any particular security or course of action.
Please know the associated risks and the applicable charges, from your Insurance agent or the Intermediary or policy document issued by the insurance company.
Every effort is made to ensure that all information contained in this blog is accurate at the date of publication, however, the Tata AIA Life shall not have any liability for any damages of any kind (including but not limited to errors and omissions) whatsoever relating to this material.
IN THIS POLICY, THE INVESTMENT RISK IN INVESTMENT PORTFOLIO IS BORNE BY THE POLICYHOLDER.
THE LINKED INSURANCE PRODUCT DO NOT OFFER ANY LIQUIDITY DURING THE FIRST FIVE YEARS OF THE CONTRACT. THE POLICY HOLDER WILL NOT BE ABLE TO SURRENDER/WITHDRAW THE MONIES INVESTED IN LINKED INSURANCE PRODUCTS COMPLETELY OR PARTIALLY TILL THE END OF THE FIFTH YEAR.
Past performance is not indicative of future performance.
All investments made by the Company are subject to market risks. The Company does not guarantee any assured returns. The investment income and price may go down as well as up depending on several factors influencing the market.
Please make your own independent decision after consulting your financial or other professional advisor.
(#)Rider is not mandatory and is available for a nominal extra cost. For more details on benefits, premiums, and exclusions under the Rider, please contact Tata AIA Life's Insurance
(1)Guaranteed Returns/Payouts depend on Plan Option, Policy Term, Premium Payment Term, and Age at entry
(^)Income Tax benefits would be available as per the prevailing income tax laws, subject to fulfilment of conditions stipulated therein. Income Tax laws are subject to change from time to time. Tata AIA Life Insurance Company Ltd. does not assume responsibility on tax implications mentioned anywhere in this document. Please consult your own tax consultant to know the tax benefits available to you.
Tata AIA Life Insurance Company Limited (IRDAI Regn. No.110 • CIN: U66010MH2000PLC128403). Registered & Corporate Office: 14th Floor, Tower A, Peninsula Business Park, Senapati Bapat Marg, Lower Parel, Mumbai - 400013. Trade logo displayed above belongs to Tata Sons Ltd and AIA Group Ltd. and is used by Tata AIA Life Insurance Company Ltd under a license. For any information including cancellation, claims, and complaints, please contact our Insurance Advisor / Intermediary or visit Tata AIA Life’s nearest branch office or call 1-860-266-9966 (local charges apply) or write to us at email@example.com. Visit us at: www.tataaia.com.
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This article is contributed by TATA AIA for an activity in public interest. The content presented on this page is for informational and educational purposes only, and should not be considered as a substitute for expert advice. Practo will not be responsible for any act or omission arising from the interpretation of the content present on this page.