If you know how Life Insurance works, you must have realised its importance in securing your future. However, many people are apprehensive when opting for a life insurance; especially in later stages of life. So is it worth buying life insurance in your 40s?
The 40s is the age when most of us are settled in our life with a stable career and dependents in the form of wife, children and parents. It is the time when you start worrying about your family’s financial security. Buying life insurance helps you attain peace of mind regarding the financial security of your family in case something were to happen to you. It ensures that you can concentrate on your current aspirations and meeting immediate life goals instead of focusing on saving up for future needs and responsibilities. If you already have an insurance plan, you should revisit it to confirm whether the coverage and the features of the insurance plan match your expectations and aspirations. If you are yet to get a Life Insurance, keep these three things in mind when going for Life Insurance policies in India-
Determine the coverage you need
The life insurance coverage that you need varies with age. It increases as you grow older with an increase in your dependents, inflation and the financial needs of your family. The final payout that your family receives in case of your demise can be used for daily expenses and other financial obligations. Experts recommend the total life cover of a Life Insurance should be 5-10 times of your annual salary. Apart from this, you need to factor in your family size, debt and liabilities, dependents and your family goals to arrive at a suitable coverage for your Life insurance policy. Even the best life insurance plans in India will be superficial if you do not adequately estimate your family’s financial needs. Hence, you need to keep in mind your financial aspirations and expectations when choosing a plan.
Select beneficiaries carefully
It is customary to name the surviving spouse as the beneficiary in life insurance policies in India. However, you need to spare a thought to name a contingent beneficiary to take care of your children and dependents in case of your spouse’s demise. This step should be given much thought, and you should select the beneficiary carefully as the future of your children depends on it.
Do not overlook the importance of the homemaker
Homemakers are an integral part of your life. Losing them would be emotionally overwhelming. It is all the more difficult for your children. You might have to cut down on your work hours to take care of them and to fulfil other household responsibilities. Getting a separate Life Insurance for the homemaker is thus essential. The payout can help ease your financial burden so that you can give more time at home to make up for their loss. It is never too late to get insured. After all, it is a matter of your and your family’s financial security and peace of mind. There is a wealth of information to be found on the best life insurance plans in India online. Do go through it, before you finalise your purchase.