When it comes to investing funds for the future, there are certain options that are apt for us based on the stage of our lives that we are in, while others may not be as beneficial to our needs. Therefore, while analysing the different investment options available to you, you must be able to consider their pros and cons with regards to your age.
Here are some financial instruments along with the age groups that they are best suited for:
1. All Ages: ULIPs
ULIPs are extremely flexible options and can be beneficial to you no matter what your age is. This is mainly because these high ROI policies are best used when you have goal based savings in mind. Since the minimum term that your policy must serve is 5 years, you can arguably take out a ULIP at any given time in your life in order to grow your funds and then use them towards a specific goal. Many people also use ULIPs purely to grow and save their funds for a rainy day, which is something that people at all ages must consider. Having a good wad of funds for emergencies always comes in handy no matter how old you are.
2. Your 20s/30s: Life Insurance
Life insurance policies offer better premiums for younger, seemingly healthier policy holders than they do for their older counterparts. The ideal time, therefore, to invest in life insurance policies is in your 20s and 30s, although nothing is stopping you from investing later in life as well. It is usually around this age that people begin to get married and start their own families, and many of the riders that are supported by leading life insurance policies are geared towards facilitating a good life for your family. For instance, benefits for spouses or women and children are covered in multiple riders and can be added onto the policy.
3. Your 20s/30s: Retirement Funds
Retirement funds are geared towards leaving you with a certain amount of funds once you retire, so that you can live independently even after you are no longer earning an income. With retirement funds, the goal is to give your policies enough time to mature so that you can accumulate enough wealth to live off. This is why it is always better to opt for such funds when you are younger and can give the funds more time. However, it is important to note that there are many funds that allow people to take out the policy up to 65 years of age. If you do not have any retirement policy and are in your 50s even, you can certainly invest as it’s never too late to start. But it is also essential to know that with lesser time, you are less likely to have a large sum.
4. Your 20s: Health Insurance
Health insurance policies become increasingly closed off to you as you age. This is because as you begin to age, your body wears down and the stress of your job catches up, leading to a ton of health problems. When you have already begun to develop specific problems, insurance companies are less likely to insure you for them (or offer premium rates that are higher than normal). This is why it is better to jump the gun and invest in health insurance in your 20s so that no matter what happens later in life, you can be on top of it.