Advantages of Buying Life Insurance Plan at Early Age

When it comes to investments, the earlier you start, the better. You can avail the benefits of compounding.

For example, if you invest Rs. 6,000 a month starting today, for 20 years, your corpus can grow to Rs. 34,00,000 (@8% return) and minimum returns at Rs. 21,80,00 (@4% return). On the other hand, if you delay investing by just 5 years, you will have to invest Rs. 10,100 a month for 15 years to reach the same corpus. In effect, the 5-year delay has cost you an additional investment of Rs. 378,000. Hence, it makes sense to start early!

This is the time you would have a larger component of your income available for savings as you might not have any serious liabilities like a home loan. You are earning well and have money at your disposal. If you plan your finances well, you can create a good corpus for the various milestones in life, in fact, if you start now, by the time you retire you would have built a sizable corpus.

Time is a critical factor when it comes to investing. Have you heard of the term "time value of money"? A sum of money available today is worth more than the same amount in the future. This is because inflation erodes the value of money. The best way to grow your money is to invest it wisely.

The above chart shows how just a 5-year delay in starting your investments can reduce your final corpus by Rs. 66 lakhs, while a 10-year delay can cost you 1 Crore 7 lakhs.

Apart from the compounding, if you invest in protection plans early on in life, you are a lesser risk for underwriting as compared to someone who is older, and with more liabilities. Hence, you can avail the easily accessible benefits of lower premiums and higher cover amounts.

The assumption is that you are a healthy male and a non-smoker.

If you are considering market-linked products, the longer you stay invested, the better it is. Time and patience will earn you rich rewards. Explore the various insurance products by Axis Max Life and start soon. The time to start investing is NOW!

If your policy offers variable returns the illustrations will show two different rates of assumed future investment returns. These assumed rates of return shown as 4% & 8% above are not guaranteed and they are not the upper or lower limits of what you might get, as the value of your policy is dependent on a number of factors including future investment performance. The actual experience on the contract may be different from illustrated. The guaranteed and non-guaranteed benefits are applicable only if all due premiums are paid.