The 40s are a crucial decade. You are at a transitional point in life. While you are still young and fit and living your life to the fullest, you have certain worries bogging you down. If you are still single, you may be thinking about finally settling down. You also must be a little worried about the various health issues suddenly popping up. And what about retirement? Have you thought of a sustainability model once your regular income stops? Keeping all this in mind, it is a good idea to start saving in your 40s. Investing in the various insurance plans available is a good way to start.
Insurance and investments
You can invest in a ULIP if you want to safely grow your funds. A ULIP or a unit linked insurance plan safely keeps a portion of your money aside while another part is invested in the financial markets. Since you are in a financially sound place in your 40s, it is a good idea to invest in a ULIP and become richer in the process.
Insurance for income replacement
A pension plan is a kind of a life insurance plan allows you to combine the elements of insurance and savings. As a single person, you may wonder why you need a life cover. Well, if something were to happen to you unexpectedly, the death benefit could be used in a number of ways. It could help clear your unpaid loans, it could help pay for a charity you supported your entire life or it could also benefit your surviving parents. But more importantly, the insurance plan would help you save a considerable amount of money. You would get the money back when the plan matures (commonly at the time of your retirement). You can choose to withdraw a lump sum amount or break it up into installments and replace your monthly salary with it.
Health is wealth
Next, we come to health insurance. As a single person, it is absolutely mandatory for you to buy a good health insurance plan. Not only will it give you access to the best medical facilities, it will also preserve the other savings that you may have. Let us understand this with an example.
Harish always wanted to go on a cruise trip around the world after his retirement. He diligently saved for it. However, at the age of 48, he suffered a cardiac arrest and was on the brink of his death. He recovered physically but was left broken mentally when he found his savings depleted because of the medical expenses. Had he taken a health plan, his cruise trip would still happen.
General insurance helps you save
Apart from a pension plan and a health plan, as a 40 year old, you must invest in some general insurance plans too. A car insurance plan, a home insurance plan and a travel insurance plan (during your vacations/work trips) can help you save. How you ask? Well, these plans offer high covers at low costs. The money you invest in a general insurance plan proves to be much lower than the claim amount. So you end up making big savings in the long run.
The bottom line
So as you can clearly see from the points mentioned above, it is vital for you to start saving in your 40s, more so if you are single. The various insurance plans help you save effectively. They also provide many other benefits, protecting your existing funds being one. So what are you waiting for? Explore the wonderful world of insurance and get set to take a firm grip over your own finance.
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