Birthdays shouldn’t just come with cake and presents; they should also be a reminder that if you don’t have life insurance cover in place you will probably be paying much more when you do decide to take out a policy.
The right time to buy life insurance varies from person to person, depending on family and financial circumstances. Generally, you need life insurance if other people depend on your income, or if you have debt that will carry on after your death. After all, you don’t want to leave your loved ones without money to live on.
When should people take out a life insurance policy?
There is no right or wrong age but the longer you wait, the more you will pay and the higher the risk, especially if you have a family that depends on your income. Waiting to purchase life insurance can have a greater impact on an attempt to purchase a policy. Medical conditions are more likely to develop as an individual grows older. If a serious medical condition arises, a policy can be rated by the life underwriter, which could lead to higher premium payments or the possibility that the application for coverage can be declined outright.
Why should you have life insurance?
Life insurance is a financial gift that you leave your loved ones that will protect them from financial fallout in the event of your death and allow them to continue with the most important things.
How are life insurance premiums calculated?
Different people will have different premiums because several factors including age are used to determine your risk and therefore the premium. Other factors that can be considered when premiums are calculated include gender, overall health including weight, any pre-existing conditions, smoking status, family history and occupation.
What should you consider when planning for life insurance?
There are two things that people should consider before taking a life insurance policy:
- Life stages
Depending on their life stage, a person may require comprehensive insurance, especially if they have children and long-term financial commitments such as home and car loans.
- Disability cover and severe illness cover
If a person takes this cover, then their family is cushioned financially in the event of a disability or severe illness. Disability cover is for insured people who can no longer earn an income due to a temporary, partial, or permanent disability. Severe illness or dread disease cover pays out a single amount when the insured person suffers a severe illness.
The longer you wait to buy life insurance, the more expensive it will get. Moreover, if you wait you run the risk of deteriorating health, which may make you ineligible for some life insurance at that point. When you should get life insurance will depend on your personal and family situation, along with your finances and obligations. But in general, the younger you are the better if you do think you’ll need life insurance coverage.
Stay Safe,
Jacques
MOMBERG CONSULTING 