23 August, 2014: Insurance has been playing the role of the important lately with the rise of insurance companies trying to persuade people that what they have to offer is better than any other. However, some people especially the young adults and teenagers feel that they cannot afford such expense and often dispense the same as a non-requirement. But one should put in mind that there are different benefits of having a life insurance at different stages of one’s life. For example, one may get the most out of their insurance at a later age than at a younger age, while for some, it may work the other way around.
To help you make an informed choice and to get the best out of your insurance, here is a guide and an important read.
Having Insurance at an Earlier Stage
There are numerous benefits if one is to start having insurance at a very young age. For one, a young adult has a lower premium charge because life insurance is built on the power of compounding. Another advantage is that a young person requires no medical checkup on the assumption that young individuals are more physically fit and healthy. Although there are various types of insurance plans, having a life insurance policy generally acts as protective shield in case of any misfortune or demise of the individual and may also be viewed as a saving plan because the money keeps on compounding over time.
To create a clearer picture, let us have an example of a person taking an insurance life cover at age 25. Assuming that most insurance policies end at age 60, the person will be covered for policy terms of 35 years. While on the other hand, a person who decided to take insurance at age 50 will have a policy term of only 10 years.
Having Insurance After 60
While most may dismiss having insurance plan at 60 years old, it is most beneficial to those who still have dependents and are still earning good at this age. There are insurance providers who are offering life insurance plans for senior citizens whose paying term is up to their 90 years of age. However, one should study and review well the terms and conditions if considering having insurance plans at this age because if the policyholder experiences a sudden death within his two years, most policies provide only for the 25% of the total payments.
Considering this and the above citing, it is important to note that age is really one significant factor in deciding for the quantum of life insurance to be paid.