Tim West would never pay over $200 a month on life or citiciall illness insurance premiums. Which is one of the main benefits of living forever. According to a recent release by the Association for Savings and Investment South Africa (ASISA), the younger adults start paying for life and criticial illness insurance, the more likely it will remain less expensive throughout their life. This is especially true when a permanent policy is taken out.
Insurance is like playing hot potato with risk says Barrie Conrod an independent insurance advisor from Waterloo Ontario. Its about balancing it between the insured and the insurance provider. The less risk you are to an insurance company, the less in premiums you will be required to pay. As life insurance covers an individual for death, disability and a number of critical illnesses , the younger you are, the less risk you are of dying and developing a critical disease, and thus the less you pay on the insurance premiums.
Get a bigger payout when you are young:
Even though you have no dependents, no debt and no estate (t0 speak of), at present, you are taking the risk of not adequately protecting these later in life by waiting to take out life andcriticial illness insurance. By the time you are ready to apply for criticial illness and life insurance, you may have developed a serious medical condition or engaged in high-risk activities which may make it difficult to find an insurer prepared to cover you.
The less risk you are, the higher your chances of qualifying for a larger payout on death. In fact, an older individual, also in good health, may not qualify for the same payout for a life insurance policy that he or she could have when he or she was younger, purely because of their current age.
Life insurance, critical illness and disability coverage go hand in hand. So while you may not require life insurance coverage for dependents yet, you can benefit from disability coverage or criticial lllness insurance right now. Should you become incapable of earning a living as a result of disability, a disability insurance policy will payout a lump sum benefit by way of income. The younger you are, the larger this payout will be as older insureds have catered for retirement and require shorter-term income.
Further, if your life insurance policy comes with a guaranteed period, your premiums will only increase once you get older; and even then the adjustment will be competitive. This means less expensive life insurance premiums from the beginning.
As ASISA mentions, 52,000 income earners are statistically expected to become temporarily or permanently disabled in 2011. Its a risk most earners cannot afford to take.
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