This blog post first appeared on TheNewSavvy.com as a guest post from us.
The New Savvy is the definitive financial and career guide for women. It aims to empower smart, modern and independent women through meaningful content that are relevant, practical and interesting. We are most proud to have been given a chance to contribute!
There are plenty of things that we know ought to be done – but don’t. Like, going to the gym. Sticking to a monthly budget. Visiting the dentist twice a year. Buying insurance. We are experts in rationalizing our non-actions, and it’s amazing how well our mind works to demote the “must-dos” into “perhaps someday”.
“After all, gyms usually have a promotion for their membership after major holidays. It’s ok to sign up then. I overspent two months in a row, but its ok – my bonus is coming up. I’ll skip my next dentist visit since I brush my teeth religiously. Insurance? Nah, I feel great, I just don’t need it now.”
Knowing that people will procrastinate till the bitter end to do the things that matter most to them, we have put together a list of 5 reasons why you need to get insurance – pronto.
1. Your crystal ball isn’t working
You wouldn’t proclaim to be able to foretell the future any more accurately than tomorrow’s weather, yet the best of us delay “that talk” with our insurance agent because it “just isn’t necessary” yet. It’s easy to wake up each morning to think that today would be no different from yesterday.
Life isn’t always smooth sailing. We burn the toast. We spill the milk. The carpark at Expo is full. Those we cannot foresee, but we can handle.
How about serious illnesses? Accidents? Premature Death?
Unless you have a letter of guarantee issued by God (or any religious being of your choice) that excludes you from any serious mishap, it’s a good idea to ensure you are properly covered.
Not to scare you, but it seems that life has a 100% mortality rate. Just saying.
2. Death should not be synonymous to debt
Life Insurance can help your dependents cover any financial responsibilities that are left after your death. Debt can be a tremendous burden, on top of the already emotional toll your absence creates in their lives.
Now imagine passing on without adequate cover. Can you imagine your aging parents or family having to pay off your car, loans or mortgage because there wasn’t enough money in your estate to cover these costs?
Life insurance can’t replace you, but it can replace some or all of your income if you die. It can cover the cost of final expenses and help pay off debts, as well as day-to-day expenses, like food, clothing, and housing.
No one likes to face up to aging or mortality, but as we advance into adulthood it’s time to face up to reality and accept the responsibility of taking care of those around you – even in death.
3. Insurance is cheaper than your daily latte
If you think you can’t afford life insurance, you might be wrong. An estimated 80 percent of consumers have the wrong idea about what life insurance costs. Millennials, for example, believe life insurance policies are more than three times more expensive than they actually are.
A typical healthy woman aged 25 can get herself covered for 25 years for about…
$6 a day.
Six Singapore dollars a day in exchange for 100 k of cover.
This makes insurance cheaper than you daily latte, your monthly phone bills, or even your cable TV subscription.
Of course, the prices do vary based on age, gender and health factors. Which leads us to our next reason for getting insurance now…
4. Wait more, pay more
While it’s easy to put off buying life insurance, the longer you wait, the more you’ll spend. Typically up until the age of 40, the cost of coverage goes up by a bit every year. Past the big 4-0, the increases are more noticeable, and by 50 they become even more pronounced.
In the previous section we could get a 100k cover for $6 a day as a 25 year old. 10 years later that cost increases to $11 a day. By 45, it balloons up to $25 dollars a day.
It’s no big secret – the older you are, the more expensive insurance becomes to purchase. And it makes absolute sense because there is no reason why a person would be healthier at age 40 or 60 than they were at age 30.
Morale of the story – buy insurance while you are still young!
5. Peace Of Mind
You wouldn’t drive a car without a seat belt or airbags, neither would you get on a plane with inadequate life jackets. These things cost manufacturers millions, if not billions of dollars a year, yet they are non-negotiable – we know that these devices save lives in the case of an emergency (however remote the chance).
So it is with life insurance. It gives you the peace of mind to pursue the things that matter. It gives you the assurance that your financial future will always be rock solid, no matter how bad things get. And it lets you sleep peacefully at night – and there is not better feeling than that!
So there you have it. 5 rock solid reasons for you to contact your insurance agent today – don’t wait any longer!
www.ClearlySurely.com aims to eradicate the knowledge gap between consumers and Life Insurance. Our Vision is that one day, every Man, Woman, and Child will be properly insured.