Under 30? Here are Some Insurance Tips You Must Know

Starting early has several benefits. If you are considering a money-back insurance plan, starting early lends more time for your money to compound.

Also, when you are young insurance costs lesser. The older you get, the higher the premium you pay for the same cover. If you buy early you also choose to get a much higher cover.

The sooner you start, the earlier you will reach your goals. For most people, a financial planning exercise is an eye-opener. Based on your needs find a suitable investment option. As a young investor, some of these recommendations might seem “too early for you”. However, think long term. This is especially true for Growth Plans and Retirement Plans.

As you progress in your personal and professional life, you will have more assets and probably take up liabilities like loans and mortgages too. Also, as a young parent, you might start planning to save for your child’s education. Revisit your insurance portfolio based on the changing needs in your life. You can gradually build the Sum Assured and start investments for long-term goals like retirement.

The Sum Assured is the life insurance cover you need to provide for your family's financial security in your absence. It can be calculated using this Human Life Value Calculator . Since you are under 30, you can opt for a Term Insurance plan with Sum Assured that is 20 to 25 times your current annual income.

Keep learning about financial planning and keep investing. Remember, Income - Savings = Expenses!