Life insurance is a product that most people don’t think of until later on in life. However, getting covered can be an important pillar in your financial journey. It can help to protect those who depend on you if you were to pass away.
Thinking about what might happen if you were no longer around isn’t easy but not planning ahead can cause financial difficulties for your loved ones or business. Waiting to get life insurance can actually make the product more expensive and can be more difficult to get. It will be much easier on your bank balance and for your family if you don’t wait to get life insurance.
The older you are, the more expensive life cover is
Young and healthy people with current financial priorities often delay getting cover. However, age is one of the biggest factors that life insurance providers take into consideration when determining the premiums.
Life insurance providers will look at your age when it comes to examining your level of risk. Unfortunately, the older that you are, the more likely you are to pass away, and the provider will have to pay out. Therefore, premium costs go up when your age does too.
You are more likely to develop health conditions
The older you become, there is a higher risk of you developing a medical condition. Heart disease, diabetes and cancers are more likely to occur as you get older. If you wait to obtain your life insurance policy, you may develop a condition before taking it out.
Once you’ve got a medical condition your premiums may go up, depending on the severity of your illness. In the worst-case scenario, you may be declined for any cover at all.
Financial worries can add extra stress
Whilst you may feel that life insurance isn’t a competing financial priority right now, in actual fact it may be the perfect time to get covered.
As you get older, you’re more likely to be able to earn more, increase your assets or put away savings to protect your family. If you’re struggling to meet ends meet now, it could put a serious financial strain on your family if you were no longer around.
Life insurance can give you peace of mind when it comes to your family and finances. Stress can be a major detriment to your mental and physical health, which could lead to further medical conditions.
Once you’ve got a medical condition then your insurance is likely to be higher. It can be less worrying to know that your loved ones will have financial support in the event of your death, no matter what your current situation.
Term life insurance is more affordable than you think
People often get put off buying insurance on their own life because they think it’s too expensive. In actual fact, life insurance is still very affordable and doesn’t have to cost you the earth.
What’s more, if you run a business or are a director you may be able to run your life insurance premiums through your business. Relevant life insurance can be paid for by a limited business and can provide protection for your family. In certain circumstances, this can be offset against corporation tax and doesn’t need national insurance or income tax to be paid.
Rather than paying out of your own post-tax income, you could be making even further savings on your life insurance.
It’s better to get cover early than be one day too late
Unfortunately, we can’t predict the future so it’s hard to know what’s going to happen. What we can do, is protect ourselves and our loved ones against any financial hardship that they may face in the event of a death in the family.
Insurance is designed as a protection product, in the hope that we will never have to use it. However, it’s always best to plan for the worst. Getting life insurance now can help ensure your loved ones are protected in the future.
Without cover, your family may suffer financially and have to change their lifestyle, move home and make significant adjustments. If something unexpected were to happen, your family will be hugely grateful that you invested in a life insurance policy.
For more information about life cover and business protection, get in touch today.