Insurances are bought much cheaper when bought early in our life, this is true for both Life Insurance and Health insurance. So catch them young 🙂
First thing is to enter into an insurance agreement with insurer early and continue the same at a much cheaper rate for life. The earlier you enter, the lesser the cost involved and easier to get additional benefits.
Let us compare the quotes from the site of a major insurer for term insurance of 1 Crore at different ages.
- Insurer age – 25 years at entry and policy covered till 60 years of age (35 years period).
It costs only 11.5K to get a 1 Crore insurance for 35 years till the insured is 60 years of age.
2. Insurer age – 35 years at entry and policy covered till 60 years of age (25 years period).
See the cost increases by 5K for the same insurance for a smaller duration of 35 years. And remember, I have declared that health at 35 and at 25 as perfectly healthy. Given the risks involved in health situations of an individual as they grow old, 16.5K is ideally the lowest premium the individual would have to pay.
3. Insurer age – 35 years at entry and policy covered till 70 years of age (35 years period).
Same term insurance from 35 years of age costs almost double from 11.5K at 25 years of age!
Its evident that the earlier you enter your insurance, the lower your premium and you lock in that lower price for much longer. Higher the premiums when you grow older, since all the lifestyle diseases all add up the insurance costs.
Get insured – catch the insurance premium while you are young, lock it up for life! Be smart, money wise 🙂
