Why it doesn’t pay to hit snooze on getting life insurance
Published on Tue Jun 23 2020 in Money
Your life is probably busy. On any given day, you might have a long list of things you need to do in order to keep you and your family happy and healthy. This might mean hitting snooze on some tasks, especially ones that might be hard to think about.
Getting life insurance is one thing that many people keep putting off. A report by the Financial Services Council found that just over half of New Zealanders — about 53% — dislike thinking about what might happen to them or their family if the worst were to happen1. As a result, Kiwis are often left underinsured and potentially unprepared when it comes to helping protect their financial future2.
Here are a few reasons why you may not want to hit snooze on getting life insurance.
Life insurance costs more as you get older
When you take out a life insurance policy you’ll be charged a regular fee, known as a premium, for the potential protection it could provide. The premium is often based on several factors, including your age.
The older you get, the more you’re likely to pay for a life insurance policy. Getting a policy in your 20s or 30s could be more affordable than if you wait until your 40s (or older).
Your health may play a bigger part as you age
One of the reasons why age impacts life insurance premiums has to do with health. Generally speaking, our health tends to decline as we get older. You may also develop what insurance companies refer to as a pre-existing condition.
This means that the longer you wait to get life insurance, the more you’ll probably end up paying for your premiums. It could also mean that you now have a pre-existing condition which your policy will not cover (either for a set period of time or ever).
Anything can happen – at any time
Many people believe that life insurance is something that older people buy. However, unfortunately accidents and illness can strike at any age.
About Author: Momentum Life is a leading provider of Life insurance and Funeral insurance in New Zealand.
1. FSC, Risking Everything: Insight Into How New Zealanders Manage Risk, June 2019
2. FSC, Exploring Underinsurance in New Zealand, 2011
The content provided in this article is for information purposes only. The information is of a general nature and does not constitute financial advice or other professional advice. To the extent that any of the content constitutes financial advice, it is limited to Momentum Life products only and does not consider your specific financial needs or goals. You should consider whether the information is appropriate for you and seek independent professional advice, if required.
All product information is correct at the time this article was published. For current product information, please visit the Momentum Life website.