The longer you wait to get life insurance, the more expensive the monthly premiums will be for the same level of cover!
Generally we don’t like to think about dying. We believe death is reserved for old people when they have reached retirement age. You can muddle along with the belief that you’ve got years to sort out that life insurance policy. No house or partner or children so nothing to worry about right? Wrong!
Myth: Life insurance is something to organise when you get old.
Life insurance should be part of your overall financial plan and there are a number of reasons why you should organise life insurance sooner rather than later. You may not have anyone who relies on you financially now but you cannot predict the future. A life insurance policy will cover you for unexpected eventualities. A life insurance policy can pay off your mortgage and provide an income for your loved ones, provided you select the right policy and level of cover. You can take out a life insurance policy before you have a partner or children or mortgage to worry about providing for. Starting a policy when you are in your 30’s can save you 1000’s of dollars over many years.
3 major reasons to buy life insurance when you are younger:
1. Lock in cheaper premiums
2. Get cover before you get sick or injured
3. Protect your loved ones from your premature death
The premium you will be required to pay is usually calculated based on your current age, sex, your status as a smoker, the sum you choose to be insured for and your health. Some insurance companies charge higher premiums for people who engage in hazardous pursuits or hobbies. Premiums increase with age and will be higher if you are a smoker simply because you are at greater risk of health problems. The older you get the higher the premiums become for the same level of cover required. As you age, you are more likely to suffer from an illness that may mean that some companies will not even insure you or if they will they will charge higher premiums. Older applicants are sometimes required to submit medical reports and after common pensionable age may not even be able to apply for life insurance.
Accidents happen and illness can be unpredictable. If you die prematurely with a life insurance policy in place then your loved ones will be taken care of financially and you can detail your beneficiaries when taking out the policy. Should your injuries or illness prevent you from earning an income then your policy may cover you for financial support. It is important when taking out a life insurance policy or getting quotes to read all the information available to you: frequently asked questions (FAQ’s), inclusions, terms on premium increases, exclusions (suicide is a common exclusion) etc. to make sure you understand how payouts work.
It can be helpful to get advice from an insurance advisor before you choose a life insurance policy so why not start your search online?