You should get insured in your 20s is the better option because, at a younger age, you'll qualify for lower premiums. And as you get older, you could develop health problems that make insurance more costly or even disqualify you from buying a plan. Buying life insurance at a young age has an important economic impact, much like delaying saving for retirement. The earlier it is purchased life insurance, the better.
Why is it Important to Have Life Insurance at 20 Years Old?
When you are 20 years old, you may not think about life insurance. Maybe you are still living at home and your parents have a policy for you. However, the reality is that the average Indian will die before they reach 65 years old.
It's important to have life insurance at 20 years old because if something happens to you, your family will be protected financially. It's also important to take into account that there is a higher risk of accidents happening when you are young than when you are older. Another most important reason is that it provides peace of mind. If you have a family, it will provide financial stability for them if anything were to happen to you.
Life Insurance is an important investment, which can save you from financial trouble in the future. Insurance is a way of safeguarding your family's future, especially if you are the sole breadwinner. The most common type of life insurance policy for a 20-year-old person would be term life insurance. Term life insurance for 20 years old will cover the insured individual for a specific amount of time, usually until they reach an age specified in the policy contract.
Advantages of Life Insurance for 20 Years Old in India
Here are a few reasons you should consider buying life insurance at 20 years old in India.
- Low Premiums: It is important to note that the premium changes with each passing year as the risk of mortality increases. It is well known that the mortality rate is higher in the elders when compared to the youngsters; this is due to the older people contracting life-threatening diseases and being heavily prone to illness. The resistance power among the old people is less compared to the young people. Hence, it is advisable to take a life insurance policy at a very young age to reduce the premium amount at old age as the life insurance premium calculator throws a high premium at old age.
- Lock-in Great Rates: Life insurance premium increases with the increase in age of the prospect due to the high mortality ratio which can be observed to increase as the age increases. The life insurance calculator considers the mortality ratio while calculating the life insurance premium. The higher the mortality ratio, the higher would be the premium charged by the insurance company. When you buy life insurance, your premiums remain the same for the duration of your policy. Buying Life insurance at a younger age locks in lower premiums and reduces the total amount you’ll spend on life insurance throughout your lifetime.
- Flexibility in choosing Plan: Getting life insurance at a young age is that you will have greater flexibility in choosing your plan. You have more options to select your life insurance policy at a young age.
- Protect Your Loved Ones: A life insurance policy helps to minimize the risk of financial difficulties which would be faced by the families in case of the sudden death of the policyholder. You will also have more time to build up savings for retirement.
- Tax Benefits: It will help you to save money on your tax. You can avail of tax benefits under section 80C of the income tax Act 1961. A maximum of up to Rs.1, 50, 000 can be pulled out of taxable income.
- Avail Discounts: When you buy life insurance in 20s you can increase the discount you get on those policies, saving you money on your other insurance costs
Things to Consider when Buying a Policy for Young Adults in India
- You need to do is to get a quote for the policy you are interested in. This will help you compare prices and get an idea of what the coverage on offer is like.
- You need to consider the cost of the policy. Some policies are cheaper than others, depending on factors like your age, where you live, and whether or not your risk level is high.
- Make sure that it is worth paying more for a more comprehensive policy because some policies only cover certain types of medical expenses while others cover more or less any medical expense that occurs during the period of the policy.
Types of Life Insurance Policies for 20 Year Olds
With more and more people living longer, life insurance is becoming a necessity. If you are 20 years old and want to buy life insurance, here are the best options for you. There are many types of life insurance plans available in India, including term insurance plans, whole life insurance policies, endowment policies, ULIPs, savings plans, etc.
- Term Life Insurance: Term policies provide coverage for a specific period and at the end of that period, they expire.
- Whole Life Insurance: Whole life policies provide coverage for your entire lifetime and are guaranteed renewable at any point during that time.
- Endowment Life Insurance: Endowment policies are designed to build up cash value over time which can then be used as an income source during retirement.
- ULIPs: Unit linked insurance plan-ULIP is a type of insurance plan that combines insurance and investment benefits in a single policy. It offers life cover and acts as a wealth creation tool.
Best Life Insurance Policies for 20 Year Olds
1. Max Life Smart Secure Plus Plan
The Smart Secure Plus Plan is introduced to fulfill your financial security needs and provide support in case of any emergencies. Max Life Smart Secure Plus Plan offers two death benefits. You also get inbuilt benefits such as cover for terminal illness, joint life cover; premium breaks, additional payout on accidental death these will fulfill your needs.
Features & Benefits:
- Offers financial protection to your family in case of your absence.
- Basic life cover due to death benefit, maturity benefit, terminal illness cover, and joint life benefit
Eligibility:
- Entry Age: 18 years
- Maturity Age: 85 years
- Policy Term: 5, 10, 15, 20 years
- Sum assured: Rs. 50 lakhs
- Premium Payment Term: Yearly, half-yearly, quarterly, and monthly.
2. HDFC Life Click 2 Protect Life:
An HDFC click 2 protect term plan is a non-linked, individual, pure risk premium/savings life insurance plan to give assurance of a 98.01% claim settlement ratio, additional sum assured on Accidental death, money-back all premiums are paid on survival till maturity with the return of premium option, avail waiver of premium on the diagnosis of critical illness, and special premium rates for female lives and non-tobacco users.
Features & Benefits:
- Safeguard your family’s financial independence even in your absence.
- Basic life cover due to death benefit, Life cover & Critical illness cover, and life cover & Regular income.
Eligibility:
- Entry Age: 18 years
- Maturity Age: 85 years
- Policy Term: 10 to 40 years
- Sum assured: Rs. 25 lakhs
- Premium Payment Period: Yearly, half-yearly, quarterly, and monthly.
3. PNB Metlife Mera Term Plan Plus:
The plan offers you the flexibility to choose protection against Death, Critical Illness, Disability, and Terminal Illness along with various additional options like spouse coverage and whole life protection. You can also customize your coverage with various cover enhancement options available under the plan.
Features & Benefits:
- Safeguard your family’s financial independence even in your absence.
- Secure your children’s higher education without any financial worries.
- Stays protected for your whole life or choose a coverage term.
Eligibility:
- Entry Age: 18 years
- Maturity Age: 75 years
- Policy Term: 10 years
- Sum assured: Rs. 25 lakhs
- Premium Payment Period: Yearly, half-yearly, quarterly, and monthly.
4. ICICI Pru iProtect Smart Term Plan
This plan gives protection for your family and critical illness cover. Life covers up to 99 years and the policy term starts from 40 years.
Features & Benefits:
- Lifelong Cover at affordable rates
- Cover 34 critical illnesses with cash pay-out up to Rs. 1 crore and accidental death benefit up to 2 crores.
- Safeguard your family’s financial independence even in your absence.
Eligibility:
- Entry Age: 18 years
- Maturity Age: 85 years
- Policy Term: 40 years
- Sum assured: Rs. 50 lakhs
- Premium Payment Period: Yearly, half-yearly, quarterly, and monthly.
5. Canara HSBC OBC iSelect Star Term Plan
Canara HSBC OBC iSelect Star Term Plan offers optimum protection such as Whole Life Cover, Terminal Illness Cover and Multiple Pay-out options, Return of Premium Options, Increase Coverage Option & Tax Benefits, etc.
Features & Benefits:
- Lifelong Cover at affordable rates
- Terminal illness cover, Whole Life Cover, return of premium option, etc.
- Safeguard your family’s financial independence even in your absence.
Eligibility:
- Entry Age: 18 years
- Maturity Age: 80 years
- Policy Term: 5 to 40 years
- Sum assured: Rs. 25 lakhs
- Premium Payment Period: Yearly, half-yearly, quarterly, and monthly.
How to Buy Life Insurance for 20 Year Old
The process of buying a life insurance policy online has become simple with PolicyBachat. For buying a life insurance plan online compare quotes. Following steps to purchase the life insurance policy online in our portal
- Step 1: Firstly, Enter the details such as Gender, Annual income from all the sources, Alcohol consumption and tobacco consumption, type of occupation, salary, and Date of Birth. After this, you need to enter your contact details to facilitate a call from our agent.
- Step 2: Now the premium from different insurers will be displayed on the screen. You can edit the details such as Coverage, Term, Premium payment method, Mode of claim settlement, etc. Submit the details to get the desired premium. The premium can be changed by changing other factors such as Coverage required, mode of payment, etc.
- Step 3: The next step is to select the best life insurance plan and pay the premium to the insurance company before proceeding to fill out the proposal form details.