There are 2 sides to insurance particularly life insurance. When you are young you should not think much about it but when you get old you regret not getting an insurance earlier in your life. Nevertheless, insurance is a great thing because it gives you peace of mind that when something bad happens at least there is a consolation. But check on the insurance company because there are several such which reneged on their promise to pay.
I definitely recommend you to buy life insurance while you're still young, because as you said, the fees are much cheaper while you're younger and they get more expensive as you age. This is sometimes the mistake of other people, they neglect the need for life insurance because they're still young and able to provide for themselves. But getting a life insurance at a young age does not only protect you from the unexpected but it also gives you the opportunity to maximize the growth of your money until the time you finally need it.
Also the type of life insurance is important. Whole or term. If you can find a reputable company with a policy that has a flat premium which is usually a whole life policy, that would be the best investment. With term life rates increase I think every 5 years sometimes dramatically. When I found out this information I only sought out Whole Life policies with a flat premium. No term life for me.
I would suggest that you buy a life insurance with a maturity period. Some life insurances mature when the person is still alive and in this way, they qualify for the sum assured which is a welcome windfall. The earlier the age, the better it gets.
After watching the 60 Minutes program that exposed life insurance companies not paying death benefits to survivors, I don't think I would be inclined to buy any life insurance. Apparently, even when the companies were aware the person had died and had a death certificate on file, they still didn't pay the benefits, and had to be shamed into it! It was very disturbing, and not happy for consumers at all. Unless and until these fraudlent practices are taken to task, I will not be purchasing any life insurance.
A medical or life insurance is always a good investment because life can unexpectedly hand you health issues. I would avail myself of a plan but I don't have the means right now since I've yet to get a stable job to be able to pay it off monthly or quarterly. There's a plan by a local insurance company that I really like where you can still get the money you've saved up back to you even though you weren't hospitalized in that twenty years the plan is active.
For the reason that ins. is cheap when you are young and you lock in the payment amount, is the best reason for getting ins. at a young age. You'l need ins. in life for the end of life finishing touches...it's a good idea getting a funeral plan now why you're young too for the same reason it'll be cheap and paid in full. You'll know exactly where you'll be when you're buried and you'll have a funeral too. Having ins. at any age shows you are a responsible person for it'll be used for payments you'll leave behind and other end of life needs that takes money or leaving the beneficiary enough money for all your last wishes too and card credit payments etc. too. Smart move you made getting your ins. already.
I am not an expert on that matter so I can't say for sure. If you do not have a lot of financial responsibilities regardless of your age then you can buy insurance anytime you want to. The earlier the better. When you'd reach middle age, you'll just have to focus on other financial responsibilities such as real estate or stocks. However, if you intend to buy a pension plan with life insurance, then it's better to do it early so that you'll be able to retrieve the money you invested in 10 years' time and use it for a future project (i.e. house, tour around the world, etc.). There are so many things you can do with the money you receive from your pension plan.
Pros: - It can cover your debts at this time. Especially student debt, which your parents may have to inherit. - You will probably need life insurance at some point in the future (wife and kids). There is no guarantee you will be healthy enough to get it. - It will be more affordable to step up your life insurance program when the time comes. You don't want to have to go from $0 to $1 million. - It can act as a savings tool. No, it's not an investment, but it can function as a savings account.
I have a life insurance. My policy will mature when I am 55. I always think that I should have insured earlier. If I had bought this policy at the age of 20, it would have matured at 40. At this age people need lots of money to manage life. You don't buy life insurance just because you are thinking about death, you buy insurance because you are preparing about the mishaps.
You can't predict death or sickness and since there is no limit on who can buy a health insurance, I'd prefer you take when you can. It may come in handy later for you or your family.
I think it is better to have your life insured at an early age. You can save a lot on life insurance premiums and also you will be covered for a longer period of time. Moreover, life is becoming very uncertain nowadays irrespective of age. So it would be prudent to start it as early as possible. If you start it early you can have the assured sum at somewhat in the midst of your life term when you need money at the most. As you get older you will have to pay high premiums to get your life insured.
Well that probably means that you have more time to really rack up the benefits and get more out of it, but at the same time maybe you really do not need it and you might be wasting some money. Take a hard look at it, if nothing else.
Life insurance is a state of mind – you pay but you don’t know if you will profit from it. However, as per the claim of insurance companies, you would surely get back all the premiums you have paid when the time comes, i.e. at the end of the build up period. That means the insurance policy is like an investment with the bonus that if something happens to you before the maturity then you will be indemnified. My take on insurance is it doesn’t matter if you are young or old because we don’t know when life would end.
When you are young, the insurance premium will be lower and after maturity, you would anyway receive the amount + interest. As you grow older, the premium also increases as there is a higher amount of risk associated. Taking insurance is just like depositing money in a bank, you would get the money after the maturity period. In fact, it is beneficial, In case something happens, there is always a helping hand from the insurance companies.
