Reasons why waiting to buy Life Insurance is a bad idea

Lower Premiums: Life Insurance policies are unique for each policy holder. The premiums to be paid and their benefits depend largely on the demography of a person. So, somebody who is in their 20s has a better chance of not dying soon - they are healthier than somebody in their 50s. As a result they would probably have relatively less health related expenses. You will often, therefore, observe that younger people who do not wait until later in life pay smaller amount of premiums.

Ease of qualification: Life insurances are of various kinds. Two broad categories are term and permanent life insurance, both of which require the policy holder to have medical underwriting. Medical underwriting is a document certifying the health of the beneficiary. Hence, like mentioned above it is easier for somebody who is younger and in robust health to obtain such underwriting and easily qualify for life insurances.

Easier to examine and evaluate the quality of insurances: When someone purchases life insurance policies early, they naturally have the room for looking around for better policies, terms and conditions.

Conversion Options: They also, then, might have the opportunity to convert their life insurance from term to permanent as per their ease.A life insurance conversion allows the insured to transition some or all of a term insurance policy into a permanent policy at the same health rating assigned at the time the original policy was issued. For example, an individual who has a Rs. 500,000 term policy can choose to convert  Rs. 100,000 to a permanent policy, leaving him with the same amount of total coverage. The permanent insurance is still in place after the term expires, which is beneficial in estate planning and long-term financial planning strategies.

Material Expenses may weigh down budget later in life: As we grow old, the responsibilities on our shoulders increase. A fresh graduate with a decent paying job does not have to worry about a spouse, children and maintaining a home. It is easier to cut down expenses to make room for payment of premiums at an early stage in life, when we are chiefly concerned with food, rent and probably education loan. Once, we venture into our 30s, there is pressure to provide for our spouses, send kids to good schools, maintain a standard of living, look after parents and at the same time save. To be able to pay larger premiums and cut down expenses is difficult even when you have a decent paying job in your 30s.

Covers Future Expenses: Since life insurance is nothing but accumulation of premiums until we need it in times of contingencies or when the term expires, it is a rational method of saving and investing. An early decision will prove to be a wise one, when in need. The earlier one begins the more you save, especially when one purchases a savings cum insurance policy. It gives one a larger accumulation period and the advantage of compounding and thus, a chance to save a large corpus.

Savings under tax benefits: In India, life insurance policy can be easily used to avail cuts on tax payment under sections 80C, 80CCC and 80D of the Income Tax Act, 1961.