Being young means a lot of things. The best perks of being young are notably being more healthy and less prone to chronic diseases as compared to their older counterparts. These perks mean that investment in a solid insurance plan is often not a top priority of many youths. However, an early investment in insurance when we are young can give us massive advantages compared to purchasing an insurance plan when we are older.
Here are 5 reasons you should invest in insurance at your young age!
1. Young + Healthy = Cheaper Premiums
Investing in solid health or life insurance when we are young and healthy simply means more affordable premiums. A similar healthcare policy would be more expensive for older adults in their 30s and 40s as compared to those in their 20s.
Again, youths might dismiss the need for insurance premiums due to their decent heath condition. However, chronic conditions such as high blood pressure and high cholesterol have become more common amongst people in their 30s and 40s, therefore having financial backup is an excellent precautionary step, considering the weak financial status of many youths to prepare them for any sudden change in health conditions.
2. Reduce financial burden of our loved ones in case of unfortunate incidents
If you have just started a family or have a big loan in hand, investing in solid life insurance early would definitely come in handy in case of incidents of unfortunate deaths or permanent disabilities. Claims from insurance would help in reducing financial burden of our loved ones for loan repayments and life expenses.
3. More comprehensive coverage
Considering the high premium to cover pre-existing conditions and other health issues when we are older, it is only rational to start investing in a solid healthcare plan at a young age. Being young means that we are less likely to carry pre-existing conditions, hence a more complete coverage for our insurance policy.
4. Focus in long term investment
Investing in a comprehensive insurance plan at young age does not only guarantee better coverage, it also ensures lower premiums paid, hence the extra capital for youths to invest in other financial instruments to accumulate their wealth.
As an example, a difference in premium of RM100 monthly when a plan is bought when young compared to older adults, say 20 years old and 30 years old, would save one RM1200 annually, and the money saved could then be used to invest in different financial instruments providing higher cumulative returns in the long run (not to mention extra 10 years of coverage!).
5. Employer coverage is not sufficient and not permanent
While many employers nowadays provide medical card for their employees, the coverage is often capped and not sufficient in case of severe medical conditions. Having a personal healthcare plan is always a good idea to ensure solid financial support in unexpected scenarios. Furthermore, there is no guarantee that our employers are able to cover us permanently given the fluctuation in economy and high rate of retrenchment in many sectors these days.
Of course, many would argue that investing in insurance can be a financial burden to most of the youths out there, especially fresh grads who are struggling to even pay rent. As a youth myself and part of an insurtech startup, I’d say that “investing” in insurance need not be expensive; a life insurance could even cost as low as RM10 monthly for female (age 18-26 | non-smoker) and RM 18 monthly for male of the same.
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