For some people, the word ‘life insurance’ had made them really shy away. Reasons are either it involves spending money to make a purchase where he/she yet to fully ‘utilize’. Or due to the younger age, the risk of health and unpredictable events are still at the back of their minds.
Surprisingly, we often spend money on our gadgets and ‘insure’ them with screen protectors and cases. We also insure our cars or our houses as required by law. However, in most cases we don’t insure ourselves sufficiently. Isn’t that contradicting on how we should manage our risks?
A financial plan without having insurance is like driving a car middle of nowhere without any spare tire or any emergency tools. In the event of a punctured tire, we would definitely be left stranded without any forms of help. So if you are being offered to purchase it earlier, why not?
Here are a few benefits of getting life insurance basics as early as possible.
You get cheaper Life Insurance
Given the opportunity, it is always advisable to purchase life insurance at a young age. At a younger age, the insurance policies would be cheaper as compared to a person 10 years older. The older you get, you would be more prone to health risk and hence, the costs of coverage would be higher.
You would have more coverage options
When you are younger, the risks of getting illness are lower. If you are well and healthy, insurance companies are able to offer a more comprehensive coverage with more options for you to choose.
However, if you are older, you would be more prone to illnesses and if it does happen, insurance companies could only offer you a limited coverage. There would be some form of exclusions or exceptions in the policy that would not cover your existing illness. You would be left with limited options and in most cases the costs of policy would also be higher.
Early protection from financial loss
Protection from financial loss due to unforeseen events would provide you with a peace of mind for matters beyond your control. While we are in the midst of accumulating our wealth, it would be wise to minimize any potential risk of event that could cost us financially. Hence, with an earlier purchase of life insurance, you are more equipped earlier and this provides better focus to find income without any worries.
While you may think that paying for it earlier would mean you are spending more now but it definitely has better value in terms of costs, coverage options and a peace of mind that sometimes money can’t buy.