Tip of the Day: Purchase Life Insurance While You are Young and Healthy
Posted on Fri, Jan 20, 2012
Life insurance is for the other people, right? Let those with the gray hairs and the anxiety about their pension plans fill in the life insurance application forms. You are in your prime, and have better things to do. Wrong. Smart people get the ball rolling on insurance plans early. When you are young, fit, energetic, and in good health you attract the lowest premiums and most rewarding deals on life insurance.
Life insurance might seem like a daunting rite of passage into maturity, but it’s really a keystone of adult life. It’s about taking out sensible protection to make sure your family isn’t faced with unforeseen expenses, a threat to a child’s future college fund, or even the loss of a home. The longer you put off getting a life insurance policy, the more likely it is to cost you more. Whether your decision is to buy a policy for a term, perhaps the length of your mortgage, or a permanent policy, your premiums will generally be lower the younger you are.
Insurance carriers take factors like an applicant’s lifestyle and family health history into consideration to determine premiums. For example, if there is a pattern of serious illness in your family, many insurers will factor that into your assessment, which may make it more difficult or expensive to obtain life insurance later in life. This in part is why, younger applicants have a stronger chance to secure lower premiums.
In a tough economic climate, it can be tempting to cut back on household expenditures. Life insurance though is an important and affordable part of your financial planning. Using a brokerage like Efinancial allows you to find a policy tailored to your budget and to your insurance needs, allowing peace of mind without substantial monthly outlay. If you are worried about the figures, it’s possible to make a quick online estimate of your life insurance policy coverage and costs using one of Efinancial’s life insurance calculators.
For some, the main obstacle to buying life insurance is psychological. They don’t want to have to think about an issue that, for people who still feel young, seems remote. That’s a mindset that must be overcome. It’s best to think about life insurance rationally. Life insurance is a necessary and valuable safety net while you live your life. Once it’s in place you can stride forward confidently.