The Benefits of Securing a Life Insurance Early
Written by Dave Joseph Balatbat — Financial Adviser, Entrepreneur and Marketer
Securing a life insurance while you’re young creates advantages over time. It’s actually cost-effective to purchase one, when you’re still in your early 20s/30s.
With very few exceptions, the younger you are when you purchase a life insurance policy, the less premium you’ll pay. Although there are many factors which determine life insurance premiums, AGE and current HEALTH status are two of the most critical components which affect cost.
This is why it is smart to secure this income protection instrument even as a young adult:
1. The younger you are the less negative health risk factors that you may
experience. The majority of people are healthier when they’re younger.
2. Majority of the population encounter serious medical conditions as they age. Old age makes us susceptible to serious medical conditions like heart/kidney/liver ailments, cancer, diabetes, etc.
3. When you decide to secure a policy early in life, you tend to be healthier, and have had no major medical issues. The policy at this point will almost always cost less.
4. You can never predict your future health status. Your current diet, lifestyle, or work conditions can all affect your future overall health even for just a short period of time (5–10 years). As you age, your policy premium rating may increase due to these factors or worse disqualify you from applying for one.
While you’re still adjusting with your finances and considering all of your other financial priorities as a young adult, you might want to give time to address your life insurance needs early. Aside from saving a significant amount of money over time, it can also:
1. Help you secure an income protection program at an early stage providing peace of mind for you, your loved ones and your future family.
2. Widen your opportunity to build cash/fund value in your policy which
you can use in future expenditures or investments.
I remember securing my first policy in 2015 (I was 23 yrs old back then). That was one of the best decisions I’ve made in my life as I was able to secure a comprehensive plan ahead of a medical condition I was diagnosed with 4 years after (2019) and while also enjoying a very affordable premium which have already grown in value.
#RealityCheck #GrowthMindset #PlanAhead
