Young people believe that life insurance is something you should consider when you become older. However, this is a common misconception.

Purchasing life insurance is one of the important financial choices one can make, but barely 10% of Indians have it. But why is it so crucial? Nobody knows what the future holds, no matter how much money you make. Every year, thousands of individuals die prematurely due to sickness or accident, and if you are the family’s single breadwinner, your death might have catastrophic implications for your loved ones’ capacity to pay household bills, debts and maintain their quality of life.

The very least you can do is get a life insurance policy to protect your family’s financial future. Furthermore, mainly if you are young, do not neglect the advantages of life insurance during your lifetime. We’ve compiled a list of ten compelling reasons to get life insurance.

Peace of mind: Death is an inescapable fact of life. The least you can do for your family amid tragedy is to safeguard their financial future. Even if it’s a little insurance, you know you’ve done everything you can to assist them in getting through difficult circumstances.

It’s possible that you won’t be qualified for it later: Life insurance plans are based on the assumption of risk. You may be well today, and paying a life insurance premium may seem like an unnecessary financial hardship, but if you get ill, you may be unable to purchase a policy. As a result, it is critical to get one early in life because it stays in effect even if your health deteriorates later. Specific riders or perks can be added to an existing or new policy by insurance providers.

A forced savings tool: If you pick a conventional or unit-linked policy, you pay a monthly premium that is more than the cost of insurance. This little additional income is invested and grows in value. This money can then be used to borrow against the insurance or sold or used to generate revenue.

Insurance plans can help you save money on taxes: You can save taxes regardless of the plan you purchase. The premium you pay for an insurance policy qualifies for a maximum tax advantage of Rs 1.5 lakh under Section 80C, as well as tax-free proceeds on maturity or death under Section 10 (D) of the Income Tax Act, 1961.

Life insurance isn’t only for you and your family: it’s essential for your company. Some insurance plans also cover your company. If you own a firm, your business partner can easily acquire your share of the company. Your business partner(s) will engage in a buy-sell agreement, with the compensation going to the dead partner’s nominees but no equity in the firm. A term insurance policy and a life insurance policy are the two types of life insurance plans.

Purchasing insurance when you’re younger is less expensive: Life insurance coverage is not required for every millennial. Insurance shouldn’t be a concern if you haven’t set up an emergency fund or are still living on your parents’ dime.

Life insurance can help you achieve your retirement objectives: Who wouldn’t want their retirement funds to endure as long as possible? You may ensure a consistent monthly income stream by purchasing a life insurance policy. Investing in an annuity is similar to putting money into a pension plan: regularly invest money into a life insurance policy and enjoy a consistent monthly income even after retirement.

Helps you accomplish long-term objectives: Because it is a long-term investment vehicle, it can assist you in achieving long-term goals such as house ownership or retirement planning. It also gives you a variety of investment choices that are associated with various sorts of insurance.

Debt management: You don’t want your family to be burdened by financial obligations during a crisis. If you acquire the appropriate life insurance policy, any outstanding debt—a house, vehicle, personal, or credit card loan—will be paid off.

Taking care of your loved ones after you’ve passed away: This is the essential part of life insurance to consider. Even when you’re gone, your family is reliant on you, and you don’t want to disappoint them. Life insurance might rescue the day for your surviving dependents, whether it’s to replace lost income, pay for your child’s education, or ensure that your spouse receives much-needed financial stability.