What should you know?
Most people would struggle to cover the financial costs associated with serious life events, such as death or long-term illness.
This is why insurance is such a key component of a sturdy financial plan.
Insurance is a way of transferring the financial burden of unforeseen events from yourself onto others.
You pay a relatively small amount in exchange for the comfort that if something goes wrong, you or your loved ones will receive a much larger sum, right when it’s needed most.
Despite its simplicity and importance, insurance is often overlooked until a major life event – such as the birth of a child or a tragedy involving a close friend or family member – suddenly makes you sit up and listen.
The costs of delaying can be significant…
Why should you care?
None of us are born with a set expiry date. You don’t know when your time will be up, or if serious illness may strike. The best you can do is prepare for the unexpected and then get on with enjoying your life.
The cost of delaying insurance is threefold:
• Increased cost: Insurance premiums rise the older you are, because the risk of something happening to you increases with age. Locking in a lower premium while you’re younger can save you a lot of money in the long term.
• You’re not Insured: The greatest danger is being uninsured or underinsured when disaster strikes. If something bad happens, you or your family could face a devastating financial situation.
• Pre-existing conditions: As you grow older, the chances of developing health issues rise. Pre-existing conditions can lead to higher premiums, exclusions from coverage, or even make you uninsurable.
Those who have ever had the misfortune to claim on an insurance policy express deep gratitude for the lifeline it provided their family, relieving financial worries during the most emotionally distressing moments.
And if you’re fortunate enough to never need to claim on your insurance, take comfort in the knowledge that you are fit and healthy and can continue to enjoy life!
That peace of mind is priceless.
