Many people still buy insurance for the first time for the purpose of saving taxes. This is a flawed reason to buy this product as insurance, is merely a way of providing financial protection for the dependents, in case of death of the policyholder. Other benefits like tax-savings, etc. are secondary and should not be the main reason for buying insurance.
For most people, buying insurance is a must. Lets see how the insurance needs change with changing age profile of the person:
20s - 30s
Most people in their 20s and 30s are least bothered about insurance. One of the reasons given by them is that they don’t have dependents and hence, don’t need any life cover. Many others feel that they still have a lot of time left in front of them to bother about insurance.
But, there are merits of buying a life insurance plan early in life. Starting early ensures that you pay very low premiums throughout the policy tenure. Even if one is buying hybrid insurance product to create a corpus (ex- Retirement corpus), then by starting early, a bigger corpus can be created as money has more time to compound.
40s - 50s
During this age band, most uninsured people realize the importance of insurance. Though it is still not late to buy a risk cover, the problem is that the individual will have to shell out a higher premium due to his old age. Also, individuals have many other financial responsibilities like children’s education, parents’ medical expenses, etc. Even if the above mentioned responsibilities are not there, its possible that the person has some outstanding loans or mortgages that need to be cleared. So one needs to cover that risk too. No one would want their family to be made to pay up loans after their death. Isn't it?
So this shows that irrespective of the age you are in, there will almost always be some reason that will require your to remain insured. So do give some thought to your insurance needs today.