Here’s the general rule of thumb when it comes to making a life insurance purchase: make the move when you have loved ones who would be financially affected by the loss of your income. Be that as it may, there is something to be said for planning ahead.
Everyone’s financial situation is different – some have money saved up and ready to go towards something important, some just get by, and some can’t imagine shelling out for another expense at the end of the month, as they have a hard enough time with what they have.
If you’re single, and currently don’t have any family who depends upon you financially, your financial situation is really the determining factor when it comes to preemptively buying life insurance – also, your age is a huge factor. You can find out more about Suncorp’s life protect options at http://www.suncorp.com.au/insurance/life-insurance/Life-Protect-Insurance
They are offering different insurances that could suit your needs and expectations, specifically to those in Australia and New Zealand. Currently, Suncorp has over 9 million customers and you could be one of them just visit the link above and make yourself insured as soon as possible.
Purchasing Life Insurance When You’re Young & Single
Typically, one of the last things that young, single, adults think about is life insurance; however, not all of them – some plan ahead. As you get older and possibly accumulate health problems, life insurance rates go up and up and up – even if you don’t acquire any health problems, the rates will still go up solely because there’s a greater chance that they can occur with age.
With this in mind, many single adults will go ahead and purchase a term life insurance policy and be set up with super low premiums for next 30 years and everything that comes along with them. For someone in their early 20’s planning on getting married and having a kid before their 30, this would set them up until after that kid is off to college.
How Affordable is Life Insurance for a Young Adult?
Let’s put it this way – the quotes a young adult can get would make anyone just over the age of 35 green with envy, and that’s not even that big of a time gap. Rates for a 20-something young adult can come out to around $350 to $400 per year and this is on the high end.
Other than price, another advantage to purchasing life insurance when you’re young and single is that you’ll set yourself up for perfect timing. Your policy will expire right when your kids are heading to college and when your assets will have changed considerably. As soon as the term life policy is up for renewal, you can make some changes, shift some numbers, and renew at a time when you’re still low on health problems and when you know exactly what you need going forward.
For example, perhaps your child is off at college, but has his entire college tuition being paid for through some means – whether it be from your own sound financial investments, from scholarship, or from some other means. Now, you can check that off of your list of things that need to be covered by your life insurance policy and substantially lower that amount, lowering your premiums in the process.
What Happens When You Wait
LIMRA – an insurance industry dedicated research outfit – conducted a study in 2012 that determined the percentage of families within the United States who didn’t have life insurance; only 36% were covered. That’s 64% left completely vulnerable to financial ruin, or at the very least a significant stunt, should their primary income provider die prematurely.
Why is this number so high? Because people wait. They wait too long to obtain affordable life insurance policies – they rack up the health problems, the debts, and mismanage their income, resulting in an inability to pay the higher premiums available to them, so they just go without and hope for the best. Chances are, they’re not able to invest money in other investment opportunities either, so what happens to those families when tragedy strikes?
Stay Ahead, Stay Informed, & Get Help
Best thing that you can do when you’re young and single is meet with a certified financial advisor that can walk you through exactly what you need to do to set yourself up correctly. You can have everything that you’re dreaming about and you can take a lot of the financial headaches out of the equation, simply by getting ahead of the game.
Why not? Right now, it’s cheaper than it’s ever going to be.
Disclosure: This article is a sponsored post
Photo Courtesy of flyzipper