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As you age you lose insurance leverage considerably
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As you age you lose insurance leverage considerably

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The important thing to remember is that the younger you are at the start of your insurance program, the higher the leverage you get. It is pertinent to remember that the leverage drops sharply as you …

The important thing to remember is that the younger you are at the start of your insurance program, the higher the leverage you get. It is pertinent to remember that the leverage drops sharply as you age.

In one of our articles we discussed the principle of financial leverage. Simply put leverage means that with small amounts one can control larger amounts. An emergency can result in a huge financial requirement suddenly and it is neither practical nor advisable to set aside money for such emergencies which have a low likelihood of occurrence, howsoever high the impact might be. Your financial requirements are best addressed by using the high leverage insurance provides. By putting a relatively small amount as insurance premium, you are able to provision for a very high amount.

View insurance as a leveraging tool. It will free your resources for productively building your corpus and generally getting more out of life, and your risks will still be managed! The younger you are, the higher the leverage.




The important thing to remember is that the younger you are at the start of your insurance program, the higher the leverage you get. It is pertinent to remember that the leverage drops sharply as you age.
In the above examples, you would notice that a 25 year old can buy a leverage of over 400 in a term insurance plan of 25 years, whereas the leverage for a 40 year old comes down dramatically to about 160. Similarly, in the example on family floater mediclaim policy, the leverage available to a 50 year old is less than half the leverage available to a 30 year old.

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  • 1. As you age, you lose Insurance leverage considerablyThe important thing to remember is that the younger you are at the start ofyour insurance program, the higher the leverage you get. It is pertinent toremember that the leverage drops sharply as you age.In one of our articles we discussed the principle of financial leverage.Simply put leverage means that with small amounts one can control largeramounts. An emergency can result in a huge financial requirementsuddenly and it is neither practical nor advisable to set aside money forsuch emergencies which have a low likelihood of occurrence, howsoeverhigh the impact might be. Your financial requirements are best addressedby using the high leverage insurance provides. By putting a relatively smallamount as insurance premium, you are able to provision for a very highamount.View insurance as a leveraging tool. It will free your resources forproductively building your corpus and generally getting more out of life, andyour risks will still be managed! The younger you are, the higher theleverage.
  • 2. The important thing to remember is that the younger you are at the start ofyour insurance program, the higher the leverage you get. It is pertinent toremember that the leverage drops sharply as you age.
  • 3. In the above examples, you would notice that a 25 year old can buy aleverage of over 400 in a term insurance plan of 25 years, whereas theleverage for a 40 year old comes down dramatically to about 160. Similarly,in the example on family floater mediclaim policy, the leverage available toa 50 year old is less than half the leverage available to a 30 year old.
  • 4. For InquiriesVisithttp://securenow.in/Fill in our inquiry form