Life insurers determine your risk profile based a number of your demographics, such as gender and vocation. While each life insurer uses similar information to determine how much of a risk you are, they offer different rates. Getting numerous quotes from various life insurers, then, often results in significant savings. For really great deal on life insurance, take out a policy when you’re young.
Younger life insurance policyholders pay less
Life insurers determine the cost of premiums based on the level of risk you are to them. Young policyholders are on average healthier than older policyholders and thus less of a risk to a life insurer. For this reason, their premiums are lower. This means that their premiums will most likely remain lower for the duration of the policy.
As your life insurer increases your life insurance premiums via a percentage each year, the lower your life insurance premiums, the lower the increase. What’s more, younger policyholders can qualify for higher payouts as well.
A man in his mid thirties may not qualify for a R2 million payout as a result of his age, but the same man in his twenties, would have. So even if you don’t have dependents right now, you can plan for them by taking out life insurance that you might not qualify for later.
Disability and dread disease cover
Further, the longer you wait to take out life insurance, the more at risk you are of not qualifying for it. If you contract a dreaded disease before you take out life cover, life insurers may reject your application, or charge you exorbitant premiums. You may even become disabled before you take out life cover, and will miss out on the added benefits of disability and dread disease cover.
Life insurers have taken the confusion out of life cover by offering it simply online. All you need to do is fill in an online form and wait for a consultant to contact you.