There’s no time like the present.
We know that time permits us to do many things. It gives us the opportunity to learn new things, build projects or businesses, or even to purchase something now that will only increase in cost the longer one waits. When it involves most types of insurance policies – life insurance, disability insurance, long term care insurance – there are different factors that make-up the premium cost for the respective policies.
People typically purchase these types of vehicles at different stages in their life to protect the things they cannot afford to lose nor see their loved ones forfeit. For example, one might purchase disability insurance to protect a tremendous loss of their income. Alternatively, one may purchase life insurance to simply protect their families in the event of an unforeseen death.
The premiums for many of these types of insurance vehicles are comprised of different factors. One of them is the age at which one is willing to purchase them. Therefore, the older we get, regardless of our age, the more it will be for the same sort of coverage.
As the old adage goes, “time is money”, this is where one may see this concept come to fruition. When one reaches a certain stage in life such as graduating from college and getting their first job, or getting married and starting a family, or planning to retire, one may ask themselves why should one wait to protect oneself when they know it will cost more to do the same thing in the future.
Most insurance premiums do not typically increase in cost. Typically, companies have a contractual agreement that when buying certain types of policies, the premiums will remain the same for the life of the contract. Nonetheless, all contract details and premium costs should be disclosed by the advisor selling them. This way the client will be made aware of any fine details needed to make a decision.
If someone is married and has children one may feel inclined to purchase a life insurance policy to make sure that their family will be taken care of in the event of an unforeseeable event. If the cost of the premium is, “X”, given their age and amount of insurance, the question is why wait another year or two if in doing so it will simply be more?
Registered representative of and securities offered through Hornor, Townsend & Kent, Inc. (HTK), Registered Investment Advisor, member FINRA/SIPC, 600 Dresher Road, Horsham, PA 19044, (215) 957-7300. HTK does not accept time-sensitive or action-oriented messages delivered via e-mail, including authorization to “buy” or “sell” a security or instructions to conduct any other financial transaction. 2347984RM-Feb21