Why You Should Not Put Off Life Insurance

life_insuranceWhen is the best time to get life insurance? The answer: yesterday. Seriously, you shouldn’t wait until you’re pushing 40 to apply for insurance, because when it comes to getting insured, younger is better. Why? The older you are, the higher the rate that will be assigned to you, which means you will end up paying more. Compare life insurance deals using Compare the Market to check your options.

The peak of your youth is the best time to compare life insurance providers, because insurance companies look favourably upon those who are young and at the best of health. It may sound brutal, but that’s reality: the older you are, the closer you are to the end of your lifespan.

Apart from lower insurance rates, here are the benefits of getting life insurance ASAP:

  • Income protection – you can rely on your life insurance to have your back in case you lose your job unexpectedly and are having a difficult time getting a new one. For couples, life insurance can be used to augment the family income should one of the spouses die, so that the family will be able to maintain the same standard of living as before.
  • Mortgage protection – life insurance can be used as mortgage protection; with this, your family or those living under the same roof will be able to continue living in the same house even after your death. If you have an outstanding mortgage balance, a term life insurance can be used to pay it off.
  • College education – you may think that your children are still too young (or not even conceived yet) for you to be worrying about their life in university, but with the high cost of higher education today (and definitely in the future), you’ll do well to start investing now.
  • Easing the burden of final expenses – death is a burden, and more so if there are expenses to pay, such as medical bills, funeral expenses, and burial costs. It may sound morbid, but planning for these things can alleviate the grief and financial burden of your loved ones when your time comes.
  • Long-term investment – life insurance can also be considered as an investment; if you put in more cash, the extra amount will grow as a tax-deferred account. The money earned from the compound effect can be withdrawn, borrowed out, or used for other insurance purposes, such as paying premiums.

There are different kinds of life insurance policies – covered off in this article by CNN Money – for different needs; what may be enough for you may not be the same for others. There’s an insurance policy for everyone; policies are formed depending on an individual’s situation. Even those who have just started getting a regular wage will be able to afford a simple term insurance.

Think about this: the earlier you take out a life insurance policy, the sooner you’ll be able to secure your family’s finances. Let’s add a little dark humour to this and say that getting life insurance can be your way of telling your family you love them from the grave.

Take your time to research, shop around, and talk to financial planners for advice, but definitely don’t put off getting life insurance any more than you have to. Remember, the earlier you apply for insurance, the easier it will be for you and your loved ones in the long run. It pays to be prepared for life’s emergencies, as detailed in this guidance piece by the Australian Securities & Investments Commission.