With so much always going on, there are some things people put off doing. One of these ‘someday’ responsibilities is life insurance. In fact, most people take out life insurance in Australia, and elsewhere, far too late. The younger we start paying our life insurance premiums, the better cover we will receive and the more money we will save. We know it feels like something that we can do somewhere down the line, but that can be a mistake. Today, we are going to talk about why now is the best time to invest in your life insurance policy.
The Risks of investing in a Policy too Late
Many individuals don’t even consider life insurance until they have a family, investments, and their 50s are looming. Of course, it makes sense to protect what we have built, but there are other factors that can result in costly premiums and less coverage.
For instance, premiums are calculated on a set of risk factors, such as health and life expectancy. This means that a robust policy in your 30s could be over half the price of taking out a policy in your 40s. As we get older, we experience all sorts of issues like high blood pressure, weight gain, and other unexpected conditions, so it is best to take out a policy when you’re younger.
Additionally, it is worth noting that your family are left vulnerable if you haven’t taken out a policy yet. That means that mortgage payments, education costs, and other debts are likely to fall on them in the event of your passing. We never know what is going to happen, so it is worth protecting ourselves as soon as we can.
How to Avoid Being Denied a Policy
As we said, the best time to take out a policy is when you’re young and healthy, but it’s understandable that life insurance might slip to the bottom of a to-do list. If you are concerned about your health and taking out a policy, it is essential to start working towards improving your health in any way possible. For example, cut down on drinking, quit smoking, eat healthily, and get plenty of exercise. Developing healthy habits will increase your chances of a good policy and lower your premiums as your health gets better. There are also specially designed policies for people with certain conditions, so it is always worth approaching an insurance broker to find out more.
In Short…
So, in short, it is best to take out life insurance as soon as you can. In fact, there has been a bit of a spike in young people investing in policies before their 20s, which can save them thousands in the long run. Older policies offer lower premiums, comprehensive coverage, and can come with other benefits to give the policyholder ultimate financial freedom. If you haven’t taken out your policy yet, there is no better time to do it than now.
