Growing up includes making choices for yourself. One such choice begins with a question; how long can you stay on your parents' life insurance plan? When you direct this question to yourself, you must know that you are going in the correct direction. You might have recently graduated from university or acquired your initial stable job, or perhaps, you ultimately got your well-being in your own hands.
Whatever the reason might be, you must always know the duration for which you can stay on your parent's life insurance plan. Find out the duration for which you are covered under your parent’s life insurance.
Till What Age can Children Stay on Parents' Insurance?
In India, sons can legally remain on their parent's insurance policies until 26 years. After completion of 26 years of age, they necessitate looking for a separate life insurance plan for themselves.
However, this provision is different for daughters in the country as divorced or unmarried daughters can remain on their parent's insurance policy endlessly, as long as the parents keep on paying the premium installments.
Apart from this, if you are the one who is solely dependent on your parents and do not have a steady source of income, then, in that case, you can extend the duration of being on your parent's insurance plan.
What After you Complete 26 Years of Age?
Once you complete 26 years of age, you will not be eligible to remain on your parent's insurance in normal circumstances. Hence, it becomes important for you to plan your finances properly and start investing your funds in an independent insurance plan.
Most individuals in their mid-20s in India are clueless about their spending patterns and set a fixed budget. This is the reason when their extent of staying on their parent's insurance plan gets completed. They become confused about moving forward with their investments and choosing the best life insurance plans to manage their funds right.
Hence, a child staying on the parent's insurance policy must always understand and plan for their future investments well in advance so that no time is wasted in picking the right insurance plan once you cross the age of 26. Also, it is advisable to buy a term insurance plan early in life.
In addition to this, to assist you with your choices, mentioned below are some popular life insurance plans you can contemplate buying in your mid 20's or early 30's.
1. Consider buying a health insurance plan
There is nothing more valuable than sound health. You might know that every year a lot of people's wealth gets spent on healthcare. Even after putting in the best efforts to keep up good health, certain circumstances are not foreseen, and health is always one of those circumstances. Rather than running from pillar to post at the last moment, it is always more suitable to cover your health expenses with an appropriate health insurance plan that provides adequate coverage.
Your health expenses will be taken care of at the most economical premium installments. Furthermore, the limitations on the health insurance claim will additionally be limited.
Also, you can buy a health insurance policy for yourself along with your existing and future family. For availing of a medical insurance policy, all you require to do is choose a suitable policy after assessing your needs and pay timely premiums so that you can redeem your policy at the time of any medical emergency.
2. Count on a life insurance policy
Most youngsters in the present times do not plan about getting a life insurance policy as they feel they are still too young to get a life insurance plan. However, this is not the right conception, and every individual who is above 18 years of age and holds a steady source of income must invest their funds in a life insurance policy.
A life insurance policy is an ultimate investment tool for those times when you need your loved ones or family to remain financially guarded. You may have a huge debt from an education loan, or maybe your wife or kids might be dependent on your income. Then, in this case, they could rely on the life insurance plan you purchased if something unfavorable occurs to you abruptly.
Apart from this, taking a life insurance policy at a young age will always be more economical when juxtaposed to obtaining a life insurance plan at an older age. In addition to receiving the mortality benefits, you can always add additional riders like critical illness cover for obtaining comprehensive coverage.
Understand who can buy a life insurance policy.
3. Get a vehicle insurance
If you own a two-wheeler or four-wheeler, or both, you should hold a motor vehicle insurance policy. Motor vehicle insurance presents you with monetary coverage against any loss or damage incurred to you or your vehicle due to man-made or natural hazards like an explosion, earthquake, fire, collision, vandalism, and various more.
Apart from this, the Government of India, under the Motor Vehicles Act, 1988, has made it compulsory for every vehicle owner in the country to hold suitable vehicle insurance to safeguard themselves from third-party insurance or any damage taking place in a road accident.
Hence, it might not be wrong to state that an extensive motor vehicle insurance policy assists in covering the accident expenses and obtaining servicing bills at the time of application for the claim.
After looking at all the points mentioned above, it is evident that obtaining an insurance policy has become a necessity in contemporary times. Once you have crossed the specific age and are no longer a part of your parent's insurance plan.
It is high time that you start looking for an independent insurance policy to safeguard your coming future. You may choose the best life insurance plan from Canara HSBC Oriental Bank of Commerce at the most affordable premium rates for your financial requirements and goals.