Expert advice

Dec 13, 2013,12.26 IST

Who should take life insurance?

You need to take a life insurance only if there are dependencies or when there are liabilities, not otherwise. So, a 22 year old person who has just joined the workforce probably does not require insurance because I presume that his parents are not dependent on him. So, he may require insurance when he goes for a home loan, when we creates a liability to the extent of the home loan and over a period of time as and when he gets married and as and when he starts a family there are dependencies. Somebody’s life has to be supported if he is not going to be around. So, it is in that situation that one person requires going for life insurance.

When does one go for a life insurance? The answer is very obvious; it is at an early age in life. Why do we say that? The premium in case of a person at the early age is much lower as compared to somebody who is 40 or 45 or 50 year old. Second, getting insurance at an early age is much easier as compared to getting at a later age because at a later age medical problems do catch-up with people. So, ideal age for a person to take insurance will be in early 30s and probably one should stop looking for insurance slightly beyond 40.

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