Life insurance is a grudge purchase for many people. We all know that personal insurance plans are an important part of financial planning, but it’s morbid to think about our mortality. That’s the reason many Perth residents put off taking out life insurance as long as possible.
Some other common reasons for putting things off include:
- It’s too pricey.
- No dependents.
- Too young.
Also read: What are the different types of life insurance?
These arguments do make sense on the surface. On closer inspection, they carry no water.
- If you think that life insurance is expensive now, wait ten years and be shocked.
- Will you never have a family? What about a cause that you’d like to support?
- The younger you are when you take out your insurance the better. Lock in the price sooner rather than later. This early action provides protection if you develop a chronic ailment or become overweight later on.
Reasons Why Life Insurance is Important
When you’re young and single, you feel invincible. You’ve got no dependents, and so you don’t see any point in buying life cover. Your reluctance is understandable, but it’s time to overcome it.
If the recent Covid-19 crisis taught us anything, it’s that life’s unpredictable. You could die in the prime of your life on any given day.
You need life insurance now for several reasons:
- The longer you delay, the more expensive premiums become. You’ll pay more over ten years as a result than the person who took their policy out young and paid for thirty years.
- Lenders usually expect you to have life insurance when making big purchases. They’ll even offer you a policy. These policies are costly for what you’re getting. If you have your own insurance, you can cede that instead.
- You might not have dependents, but someone is going to have to pay for your funeral costs. Do you want your family burdened with that?
- If you do have a family, have you considered what the effect of your death will have on them? Will they be able to afford to stay in their home? Is there enough money in the estate for them after the executor pays the debts?
Related: Can you buy Life Insurance for a family member?
Ask Greg a Question About Life Insurance
Still confused? Don’t feel alone – insurance can be a very complex issue. How much is enough? Should you choose whole life or term life plan? Are there any gaps in the cover?
For the answers to all these questions and more, speak to Greg. He’s standing by to help you secure your family’s financial future and give you peace of mind.