Now, why do we need life insurance? The main answer is financial security for your loved ones and family in the event of an unfortunate eventuality. You want them to be secure in all aspects without having to go through financial stress during their grieving and difficult times. You would not want any burdens of debt or loans, that you may have availed, to be borne by them. This is why life insurance comes into play. Life insurance is that valuable and versatile tool that can help reduce your “what if” stress and also be a solution to your family in emergencies. Further, the sum assured when you buy life insurance need not be triggered only at the time of death, but also otherwise as a maturity benefit; you just need to know what and how to use it appropriately.

Now, is it beneficial to buy life insurance in your 20s? The answer is YES! Now we’ll explain why we need life insurance in our 20s. Some of the important reasons are listed below:        

1. Lower Premiums
   The first and foremost reason is lower premiums. When an insurance company assesses your file as an applicant, they need to check the risk associated with you. The younger you are, the lower the risk attached with you with respect to any ailments and health problems. This is why your premium rates are much lower and keep on increasing as you age. In general, youngsters are less prone to chronic ailments and enjoy good health. This is why older people are charged a high rate of premiums. 
   
2. Longer Coverage
   The sooner you buy life insurance, the longer you can avail its benefits and coverage. As a thumb rule, if you buy life insurance at the age of 25 years, you can avail of its benefits for 50-55 years; whereas, if you buy it at the age of 40 years, you can enjoy the coverage for just 30-35 years. 
   
3. Better Financial Discipline
   Most of you might not have considered this great benefit. It is no surprise that every form of investment aims to inculcate the good habit of savings and makes you more financially disciplined. You avoid unnecessary expenses and utilize your earnings in better avenues and instruments so as to maximize your returns. Those who usually start investing at a young age tend to have fewer money issues in the long run. 
   
4. Tax Savings
   Another critical importance of life insurance is the tax-saving benefit you get under Section 80C of the Income Tax Act’1961. All forms of life insurance are eligible for this benefit, including but not limited to, your basic life insurance plan, Unit Linked Insurance Plans, term insurance, endowment plan, etc. Premiums payable under your life insurance are eligible for tax-deduction every year. 
   
5. Additional Financial Support
   When you buy life insurance, you can also add on more coverage to your plan through the purchase of riders. These riders are specific in nature and provide financial support even during difficult times, such as loss of employment cover, critical illness rider, permanent or temporary disability cover, waiver of premium cover, etc. These riders provide you support for certain medical problems and other extreme eventualities which may affect your ability to pay premiums and manage your loved ones. Further, many of these additional coverages cease payments of premium payable by you in the future while the insurance coverage continues.
   

So, to ensure you get the best of your life insurance, start investing and opt for the plan most suited to meet your requirements. For this, you may either buy the same directly from an insurance company or compare numerous plans offered by numerous providers on an aggregator’s website.  

Visit PNB MetLife to know more about life insurance, Term Insurance & Term Plan