Expect the Unexpected in Life: An Insurance Blog

Hey guys,

Sorry about the late post, it totally slipped my mind yesterday.

But I'm sure I've taught you well enough by now to expect the unexpected :P (thanks Pam!)

I'm going to write a little today about why as young people we have a better opportunity to get insured.

Sure you may not have as many responsibilities as a 40 year old but it is also harder to get insured and it will cost you more in the long run if you wait until 40.

One of the biggest paradoxes with life, disability, and critical illness insurance is people don't realize its important to them until it's too late. Either they become sick/unhealthy before they apply and can't get coverage. Or they die and leave their family in a mess.

There are lots and lots of people out there who have run into these problems. What they always say to themselves is "why didn't I get the insurance when I was younger and I knew I was healthy? Then I wouldn't be in this mess!" When they were younger they said "I don't need to spend money on that, I'll be fine"

Ask your parents, I'll bet they know someone who has suffered a disability and didn't have insurance to cover their time off of work. Or maybe they know someone who has tried to get life insurance but was declined. Then ask them "If I have the opportunity to get this insurance now while I'm healthy, should I do it?" I bet they'll say yes, and they will also tell you it will cost you much less than what they are currently paying per month.

Now I'm not saying you should get the full amount of life insurance you'll need in your life right now. Just get a small amount that you can afford. That way you are guaranteeing that you have some. With most life insurance and disability insurance plans you have the option to increase the amount of insurance when you need it, without having to go through underwriting. This means that if you do somehow become uninsurable. You'd still be better off than if you tried to apply after you were uninsurable.

"Oh but I have insurance through work!"
When you leave your employer you lose your insurance, what if something happens to you during the 3 month probation period at your new job? Group insurance is not guaranteed, and usually isn't even enough to cover the average person.

How much does insurance cost anyway?

It depends how old you are and if you are a smoker or now.

I'm 24 and for a $100,000 life insurance policy on myself it wouldn't cost more than $15/month? For someone our age $100,000 is a lot! Does $15 a month seem that bad to ensure that you at least have some insurance in place for the future. That's less than you'd spend at the bar in one Friday night.

Disability insurance will cost a little bit more but it is also more relevant to you right now. What would you do if you became disabled tomorrow? Where would you get money? What would happen to your life? The honest truth is disabilities can and have happened. Can you think of anyone you know who is disabled and unable to work? 1 in 3 people will suffer a disability lasting longer than 3 months.

Think about it guys, you really should be guaranteeing your insurability before it's too late! Remember what I said last week about priorities vs. desires? This is exactly what I mean. The biggest promise I can make to you is I'm not trying to screw you over or to just make a sale. Since you're all my friends and I care about you, If something did happen to you, you would never regret having sat down with me to talk about this stuff. And I would never regret giving it to you. I would regret if we sat down and you didn't see the benefit, then something happened to you...I would see that as my fault, because I could have helped you and didn't.

Alright well I hope you all have a great one....and seriously talk to your parents about this, they will be able to give you some good insight.

Mike