In the fast-moving world, we live in today, an individual encounters various challenges and tasks. To remain competitive, one has to take the risks that were previously unheard of. These inherent risks taken by individuals call for appropriate insurance at any given point in time. A legal contract signed between two parties i.e., the insurance company (insurer) and the individual being insured is called an insurance contract. In case of any contingencies faced by the insured individual, the company promises to make good the losses and compensate according to the legal terms of the contract.
It is extremely important to know the types of insurance, the risks associated with it, and the losses a contract will cover. An insurance policy must be taken by the individuals that suit their needs and can help them the most going ahead in life. No one can anticipate extraordinary or emergency circumstances in life. Hence, it’s vehemently important to get a cover and be prepared on the financial front for oneself and the family when these emergencies hit. The earlier an individual starts with the insurance policy the better. This ensures the compounding of the premiums paid by the individual and a larger corpus and cover at the end of the policy. The types of insurance at every age profile that can be taken by an individual are listed as under.
In your 20s
Insurance is probably the last thing on the mind of a 20-year-old. But as the experts in financial advisory have reiterated umpteen number of times that the golden rule for financial planning is to start early and at the nascent stage. This gives the individuals a head start and allows them to enjoy the benefits of excellent coverage at extremely affordable premiums. Responsibilities and liabilities are comparatively lesser in the twenties and hence it is the best time to try out different policies. Health insurance coverage at this stage is highly recommended at this stage of life. The coverage offered for this policy is sizable and one can easily afford to pay the low premiums. At this stage, it is also advisable to choose a flexible plan that can be changed to suit your wants and needs in the future and to opt for term insurance instead of life insurance.
In your 30s
With responsibilities coming in from a family and a career, it becomes even more important to ensure the security of one’s family. Life insurance becomes critical at this stage if people are depending on you for financial assistance. It also becomes a good investment option if the individual survives the policy tenure. Home insurance and medical insurance are two other insurance policies highly recommended at this stage.
In your 40s
The forties are when the responsibilities and the dependence on the family and children kick in. At this stage, it is expected of the parents to fulfill the countless wishes of their children. From giving them a good education to sponsoring their ambitions and extracurricular activities. The financial burden is the highest at this age. Hence having an existing insurance policy is extremely important. Life insurance and protection plans are highly recommended for an individual in his 40s.
Today many insurance companies are providing a plethora of choices and policies to cater to an individual’s needs. It is upon an individual to choose the insurance coverage that can serve him the best. At FatakPay, we help guarantee an individual to never miss insurance premium payments. With our user-friendly interface, it gets easier for individuals of any age group to keep track of their finances and make their premium payments on time. One can also enjoy huge rewards and discount schemes after every payment. We understand that opting for an insurance policy is one of the most important decisions taken by an individual to enjoy a stress-free life.