Now there are various types of life insurance policies available out there. Through the course of history, these policies have been designed and crafted to better suit the needs of the holder. In a policy, there’s an insurer (or a policy holder) and a beneficiary (the one who can claim the policy). At different stages of your life you might feel the need to approach a life insurance company and register yourself for a policy but that also depends on the stage you are in your life. Let’s see what different kinds of factors can affect this decision.

You start out as a single working individual, with minimum responsibilities and support from your parents or guardians. At this stage in life you are barely accountable to anyone or anything apart from personal commitment. At this stage in life you’re less likely to opt for a policy cover. After this, you decide to get married, get a house for yourself and settle down with a couple of kids. This is when the responsibilities really start to kick in. You are not only accountable for yourself but also your family. You’re a part of a system where there are other people who are dependent on you. The next stage is when your children grow into college going kids, they are a part of an education system that requires investment and your role in this is vital. You are also a support for your spouse and what’s important for you in this stage is to protect a part of your income, as at this stage your savings are vital. Now your kids are out of college and the mortgage on your house is paid. You have independent children who are now ready to take on the responsibilities of the household and start a life of their own and then you reach the final stage. You’re close to retirement and have some amount of savings with you that serve as retirement income for you and your spouse.

In all these stages what is important to remember is your role in it. Based on your circumstances you can have a policy that suits your conditions. Now there are basically two types of policies that may make your life a little easier. There’s a term policy and a life cover. A term policy is insurance for a specific tenure or period of time and a life cover once opted for works for you all your life. Both have their own benefits attached with them and can be availed basis your convenience and preference. Like the stages mentioned above, some stages are more important than others and thus at that point of time a term policy makes more sense while sometimes it’s advisable to opt for a life cover if your situations demands it. But there’s one rule that stays constant, the earlier you start the better it is.

Source by Arundhati M Kher

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