Often people are confused if they should buy a life insurance or wait till they have an emergency and cannot do without one. They do not know about different options available and how they can benefit from them if bought on right time. This is a generic problem at least with those who have just begun their professional life and have had a job after passing out from college.
When is the Right Time?
The best time for buying insurance is as soon as a person gets his first job. This means once a person becomes capable of earning and buying things for himself. Why? Because buying at this time will enable him to get the lowest premium rates and also he has less responsibilities so he can afford to pay the monthly premium.
Usually people tend to be so excited with their job and salary for first few months that they spend it all on activities which are of less importance. They will throw parties to friends for their first job, then for the next few months, buy gadgets, clothes, etc. which they could not ask for from their parents because of their limited budget. Some believe that they had always waited for this time and so what is wrong in that? There is nothing wrong in this but would it not be better if money is spent in a defined proportion for leisure and rest is saved. In fact he can use the money in the right place by buying a life insurance.
Realized It? Buy One Now. But Which Is The Best Buy?
If you are one of the young people without insurance and with the same thought process. And now you realize that it is time you should buy insurance, then the next step is to decide which policy to buy. Since you have just begun with your career, you might not be aware of the future situations that might come around. Therefore, it is better that you plan for smaller durations and buy a term life policy.
This is a policy with insurance for a limited time period you decide to opt for. Also, for younger people, companies charge low premium rates. This makes it the best deal in life insurance. If you think you want to go for whole life insurance, remember that whatever is your financial situation, you will have to pay the premium lifelong. Also, the premium plan of this type of policy is more expensive than a term insurance. Thus, if you want an affordable insurance then opt for a term life policy.
Who Can Be the Beneficiary?
Since you have just begun your life, you have no responsibilities of a spouse or children. In a life insurance you need to nominate a beneficiary. In case of your death, the money will be paid to the beneficiary. For now you can nominate one of your parents since they have always supported you throughout life and are responsible for your success. You can ensure that if you are not there, the term insurance will provide financial support.