Should you wait to buy Life Insurance?
As a financial insurance professional I have heard my fair share of reasons why purchasing needed life insurance coverage should be postponed. I have also seen the significant effects of postponing and want to discuss the good and bad of such a decisions.
Waiting to buy life insurance…
Planning on purchasing additional, or initial, life insurance coverage at a undetermined date in the future can actually yield positive results for certain situations. I have had several clients who begin the new year with new nutrition and fitness aspirations and will dive right into the difficult work of improving their physical health. As you may know, the healthier you are determined to be by a financial company, the smaller your premium typically is for your age group. I have experienced submitting medical exams on clients in the midst of such changes and actually have seen a adverse result due to the following common characteristics of going through such a journey; rapid weight loss, increased liver enzyme production, unstable A1C levels and elevated proteins in urine. All of these are side effects the human body often exhibits in the midst of radical exercise and diet control routines AND they are all seen as negative bodily function results by insurance companies. In addition people who have recently quit smoking or stopped being prescribed medication for a diagnosis are typically not considered free of such ailments until a full 12 months has passed. If you fit one of these classes of customers then it is always recommended to wait until this period has passed before applying. A favorable health rating will always be a better use of your money than saving a one year age difference.
Not Waiting to buy life insurance…
If one the above situations does not apply to you then waiting to purchase coverage you know is necessary can be devastating. Life insurance premium for any plan is determine by age, health risk and gender. Only two of those factors can and will change with the passage of time. As each factor increases in value so will your premium. I will often hear concerns about fitting premium due on a policy in with a already tight budget. This is actually the exact reason a immediate purchase is even more crucial! You must consider that if the budget is already tight, a death in the family (especially that of a income earner) would create a substantially more difficult situation for surviving heirs. Life insurance is not just for the wealthy, but for anyone whose absence would create a financially difficult time for those left behind. Low income and low savings families are in much more of a precarious situation when a loss is experienced. The ability for $1 of premium to purchase $100’s or $1000’s of dollars in payable benefit makes insurance an ideal financial vehicle for such situations. I have personally watched clients procrastinate purchasing a plan up UNTIL a major health incident occurs. Unfortunately, a health scare creates the urgency for purchasing a plan but the reality of doing so exponentially more difficult. As you age and experience health conditions your premiums can be to expensive to pay or you may not be coverable at all! People are often un-aware that diagnoses as simple as Diabetes, COPD, Asthma, Congestive Heart Failure and even Depression can get you denied for coverage. If you know your underinsured, life insurance is not something to procrastinate on. Find a quote from the hundreds of companies in the country that fits your budget and go for it. Bay Life can help you find the most advantageous rates possible by shopping for you.
