Are You in Your 20’s? Here Are the Insurance Plans You Must Consider

Various insurers sell term insurance plans online and there are many reasons to consider an online purchase.

• Life insurance Cover: Your parents may be dependent on you now, or will be in future, once they retire. The first thing you may want to consider is protecting your parents’ financial future. You can begin by investing in Axis Max Life Term Insurance Plan which is the simplest life insurance plan. It will secure your dependent parents or partner, once you get married, against unexpected financial setbacks.
  
  The benefit of purchasing term insurance at a young age is the low premium rate (the younger you are, the cheaper your premiums will be). Moreover, your health is a major factor that determines how much you need to pay for terminsurance. Buying term insurance in your 20’s, when you are in the prime of your health is a sound financial decision.
• Health Insurance Cover: All young individuals like to believe that they are hale and hearty and aren’t vulnerable to illnesses or diseases. Unfortunately, our sedentary life these days has led to a rise in the number and early onset of lifestyle diseases. We need to plan better for our finances so we are equipped to battle them if such a situation may arise.
  
  A health insurance plancan cover you adequately for years for accidental injury or treatment of any disease. Furthermore, you can also enhance your health cover by opting for critical illness insurance,such as specialized 'Cancer Insurance Plans' and protect yourself against the dreaded disease which is on the rise.
• Personal Accident Insurance: Life insurance by Axis Max Life covers the risk of death, and health insurance acts as a cushion against hospitalization expenses. While you are bound to be familiar with these essential covers, very few must have heard of the ‘Personal Accident Insurance'. Personal accident insurance covers you against disability or death due to an accident.
  
  Buying personal accident insurance helps plug an importanthole in your insurance portfolio. It provides you and your family, the financial support in case of disability/death after an accident.. Thus, even after an accident, your family continues to be financially stable.
• Pension Plan: You may have heard this many a times that the best returns are gained by staying invested for the longest terms and in the best instruments.Regular investments in pension plans for long-term can help you build a huge retirement corpus. Imagine if you start in your early 20s, you can accumulate quite a largecorpus by the time you wish to retire (say at 60).
  
  Additionally, pension plans are flexible; you can choose amongst investment funds ranging from aggressive to balanced to conservative. This flexibility feature is important because pension plans are long-term investments andfinancial and economic circumstances can change over the period. Along with investment as a benefit, the essential benefit of life insurance remains, which will keep your family financially safe, in case something was to happen to you.
• Investment Plans: from Insurers Investment plans like ULIPs give you dual benefit of investments and insurance. The premium you pay for a ULIP planis divided into two parts; one part goes towards investment and the other towardscoverage of life risks.
  
  ULIPs can be a good investment tool for achieving your long-term goals like, buying a new car, buying a house, opening a start-up,etc. ULIPs potentially offer better returns over a longer time horizon with the power of compounding.
  
  With ULIPs you have the option to choose the mix of funds you invest in.If you start in your 20’s, equity funds can be a good option as you have a longer horizon that helps you mitigate risk in equities. However, when you are near an important milestone in life, you can switch your investments in balanced funds which can range between equity funds and debt funds. This will make sure your money is protected,and the risk range is within your control.
  
  Also, you get tax rebates for all premiums paid - under Section 80C. All payouts received are also exempt under Section 10(10D)of Income Tax Act, 1961. Thus, you not only save money but also see it grow. (As per prevailing tax laws)*
  
  Financial protection & insurance coverage isn’t something most young individuals want to think about. But if you were to plan better, keeping your current finances in mind, it will help you to rest easy in the coming decades, knowing that you and your family are insured from the unexpected.