Getting a life insurance policy is one of most underrated and misunderstood yet very important financial moves you could ever make. In my experience, people avoid insurance agents because they don’t want to be sold to even without knowing what the policy covers. Many start a little late and when they get financially tight, but only a very few know and give life insurance some importance.
Life insurance, as the name suggests, is an insurance for one’s life. It covers one’s income generating capacity just in case the owner of the policy is no longer capable of doing his job when he gets disabled or worse, dies. Life insurance is ideal for people who have dependents because just in case what may happen to them, at least those who will be left behind are financially covered.
So why is it that it is very important to get covered while you’re still young and single? Here are a few reasons
1.) Insurance premiums increase with age. The younger you start, the smaller the premiums are. The reason is that because the older you get insurance companies face more risks compared to younger people. Older people generally live shorter than younger people. There are life insurances that won’t require you to pay for your whole lifetime. Term insurance covers you for a specific interval of time only, quite ideal for people who are just starting out, thus could make you save a lot of money.
2.) You don’t have too much financial obligations. Being single has lesser financial responsibilities than married people thus while you’re still single, get your self a life insurance while you still don’t have a family. At least when you get married and start a family, you already have an insurance and you could get your spouse and children covered as well.
3.) Reduce the financial risk of your dependents. If you’re planning to start a family, getting a life insurance while you’re still single puts the financial status of your family in a really good shape. Whatever might happen to you, they could get some financial support. It is one of the financial problems that families face. Once the bread winner loses is income generating capacity, everybody else suffers because they all depend on him. That’s where life insurance comes in.
4.) Gives you peace of mind. Knowing that you’re loved ones are being financially covered or knowing that you’re already financially covered before getting married will give you a lot of peace of mind. Finances is one of the most important factors in getting married as well as a single life. You could shift your focus and attention to other things other than trying to keep up with the times just in case what might happen to you because you know that something could provide your loved ones some financial assistance just in case your income capacity will be gone.
It’s quite ironic because people get their properties and valuables covered but don’t bother to get their income generating capacity covered. Life insurance is one of the most important things to consider in finances. Start young, start now.