If you’re young and already working, chances are you already think that you don’t need any personal life or health insurance seeing as your employer provides one. But the truth is that you actually do need your own personal life insurance and health coverage now.
Most young adults don’t consider this and often wait until they are married with kids or are in their mid-life before considering taking out any insurance. While doing it at that time is not a bad idea, the truth is if you start at a younger age, there are a lot more benefits accrued to you.
Prequalification Tests May be Unnecessary
Let’s say you’re 27-year old man in excellent health and with a decent job looking to secure life or health insurance.
Chances are the insurance company will not mandate necessary medical tests just to prove that you’re healthy –unless you have a pre-existing medical condition. In many cases, a doctor’s report certifying that you’re in good health is enough.
For an older individual in his late 30s-50s however, the terms will be different. Starting early provides considerable convenience and makes it easier to get both whole life and health insurance. Plus, if any medical condition springs up later, your health insurance will cover it up to the policy limit.
The Waiting Period Would Have Passed
The waiting period is simply how long between when you sign up for an insurance plan and when you can claim it. This is in place to protect the insurance companies from people who sign up just to file compensation claims for illnesses they already have or have the intention of inciting incidents like arson and accidents.
All insurance policies come with a waiting period of 30-90 days. For older individuals above 60 years, it would be longer. Even longer is the waiting period of 1-2 years for certain ailments (ask your insurance agent for this list).
Applicants who are young and in excellent health are often considered as low-risk individuals. Therefore, their insurance premiums will be lower than older individuals. For instance, a young, single and childless individual of 28 can pay about $75 per month for a 30-year life insurance policy that has a $500,000 death benefit.
Now, if you were to wait until 35 when you’re married, with kids and possible health conditions in the nearest future, your monthly premiums can go up to $120 per month for the same plan. Although, there’s a workaround for the latter if you’re willing to opt for a lower number of years –usually 20-year term policy.
Living Benefits from Life Insurance
Yes, there are living benefits from life insurance policies. Most people only think about life insurance in terms of death benefits –and that’s partly what they are for.
But, there’s the added advantage of accessing the some or all of the cash value for life events such as your nuptials, college education funds for the kids, paying off student loans, purchasing a house or even augmenting your retirement savings or income.
Please note that you would want to discuss this with an insurance agent, like the ones at Insurance Land, so they can help you create a plan that will allow you access some of the cash value without worrying about a lapsed insurance coverage.
You’ll Enjoy the Rewards of the Insurance for a Long Time
Life happens. People fall sick, lose their jobs and get injured in accidents. The point is getting life or health insurance earlier will help offset some of the bills from one or more of these incidents.
This can be very valuable at the most unexpected times. Taking out your insurance early ensures that you are protected from being overwhelmed by the financial demands of these life events.
Oscar King is s freelance writer and professional student who contributes articles and insight into living a healthy lifestyle.