6 Critical Situations in your life to consider getting Life Insurance

Have you ever wondered, “Do I really need life insurance?”

As we navigate through life’s journey, our financial obligations evolve, underscoring the importance of maintaining sufficient life insurance coverage to safeguard our family’s financial stability. While some recognise the significance of life insurance, others may question the optimal time to secure a policy.

In this blog, we will explore five pivotal stages in life where life insurance becomes particularly essential. By delving into these key milestones, we aim to offer a comprehensive guide that sheds light on how life insurance can be an invaluable asset during these critical junctures. Understanding the financial implications associated with each life stage empowers you to make well-informed choices about selecting the right life insurance policy for you and your family.

Becoming an Earning Professional

When you start earning, the priority of where you spend your money may not exactly be on life insurance. You want to indulge a bit, treat yourself and your loved ones, or buy something that you have been eyeing. But no matter how “adulting” sounds, there are several benefits to getting life insurance as early as possible, one of the most important factors being lower premiums. Yes, it is a lot cheaper.

When you’re younger, insurance companies consider you a less-risky customer because you have a healthier lifestyle, are fitter, and are less prone to diseases. Therefore, they provide premiums at a cheaper rate. Moreover, if you have lifetime coverage insurance, you won’t have to pay more as you become older to remain protected.

Being an earning member of the society also means that you’ll have to pay tax. By getting life insurance, you can save money through tax savings under Section 80C of Income Tax Act, 1961. If you decide to add a critical illness rider to your coverage, you can also save money on taxes under Section 80D of the Act.

Tying the Knot

Getting married is one of the biggest milestones many decide to go through. While the union of two individuals is indeed a celebration, there is no doubt that it comes with extra responsibilities.

The essence of life insurance is to provide financial protection to your loved ones in the event of your untimely demise. If you’re getting married, having life insurance is a good backup for your spouse. It will reduce your spouse’s stress and financial burden in case something happens to you.

Moreover, as newlyweds, getting life insurance early can be more cost-effective since premiums are lower for younger and healthier individuals.

Before you decide to get life insurance, assess your combined income and expenses to understand how much coverage you will require. Insurance plans like SUD Life Protect Shield, a term insurance plan, gives you a death benefit, return of premium and critical illness coverage. You can understand insurance plans online to get a plan that suits your needs.

Planning a Baby

Life insurance becomes even more important when you bring a new life into this world. Not only do your responsibilities become even greater, but your financial obligations increase too. Hence, it is imperative that you’re financially prepared for your little one’s well-being.

As a parent, you want to see your child succeed in their personal and professional life. You want to support them and give them the best of your capacity so that they may flourish in this world. In case of your unfortunate demise, life insurance can help them in completing their studies, living expenses, and other essential costs, so that they continue to have the same quality of life.

Buying a Home

Buying a home is one of the most essential steps in life and it represents a significant investment in your future, providing stability, a sense of ownership, and above all, it is an opportunity to create a place that truly feels like home.

However, buying a house is not always easy as it involves a substantial financial commitment. A 1BHK in a metropolitan city like Mumbai or Delhi will cost around ₹90 lakh to ₹1.5 Cr. This means you will have to get a home loan in order to purchase a house, for which you will have to pay an EMI for about 20 years or so.

Having life insurance protects your family from financial distress from paying outstanding loans in case of your death. It is advised to opt for a higher coverage plan, such as Rs. 1 Cr term insurance, if you have a home loan and other financial obligations so that your family continue to live a comfortable life in your absence.

To Protect your Business

You have poured out your heart and soul into your business, but what happens to your company in case of your untimely death? Having life insurance provides financial security during such a critical situation. It can help your company overcome difficulties so that it may continue to grow.

Life insurance can protect your business partners, employees, and other stakeholders in the event of your death. Hence, choose a life insurance plan that has the potential to cover your business’ value and financial needs.

Ageing Parents

Parents sacrifice a lot to make sure their children grow up to be successful individuals. When they get older, it becomes the children’s responsibility to make sure they live fulfilled golden years. As they get older, you may also become financially responsible for their well-being.

Considering all these factors, it is important that one must have life insurance to support your ageing parents. It can help in covering their medical expenses and long-term care needs. Additionally, it will provide financial support for your family in case you pass away.

In every stage of your life, whether you’re single or married, with or without children, life insurance empowers you to move ahead in life with confidence. It makes sure that you and your loved ones are financially secure so that you can concentrate on more important things in your life.

Disclaimer

Star Union Dai-ichi Life Insurance Company Limited is the name of the Insurance Company and “SUD Life Protect Shield” is the name of the plan. Neither the name of the Insurance Company nor the name of the plan in anyway indicates the quality of the plan, its future prospects or returns.

SUD Life Protect Shield | UIN: 142N085V02 | A Non-Linked Non-Participating Individual Term Life Insurance Plan Star Union Dai-ichi Life Insurance Company Limited | IRDAI Regn. No: 142 | CIN: U66010MH2007PLC174472

Registered Office: 11th Floor, Vishwaroop I.T. Park, Plot No. 34, 35 & 38, Sector 30A of IIP, Vashi, Navi Mumbai – 400 703 | Contact No: +91 22 7196 6200 | 1800 266 8833 (Toll Free) | Timing: 9:00 am – 7:00 pm (Mon – Sat)| Email ID: customercare@sudlife.in | Visit: www.sudlife.in | For more details on risk factors, terms and conditions, please refer to the sales brochure carefully, before concluding the sale. |Trade-logo displayed belongs to M/s Bank of India, M/s Union Bank of India and M/s Dai-ichi Life International Holdings LLC and are being used by Star Union Dai-ichi Life Insurance Co. Ltd. under license.

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