Although we generally advise people to get started really early, it is not too late at 35 for you to take out an insurance plan, but here are some things you should know:
- The earlier you start, the cheaper your monthly premium
Be aware that the more you delay your decision, the higher the likelihood that your monthly premium will be higher. You will therefore need to identify a package that meets the amount you can afford to pay monthly and that also gives you at least the minimum sum assured you want to invest towards. You should aim for as high a sum as you can possibly afford as it will make all the difference when your policy matures.
- Consider adding a with-profits plan
At this rate, a with-profits plan will bring in more benefits to your plan given the time you started your investment. A with-profits plan will add profits accrued to your sum insured at the end of your policy term. It also means that your premium will be slightly higher than a non with-profits plan. These are decisions you will need to make when deciding on the best plan for you.
- Long-term investment or cash-out plan?
You have to decide on what you hope to gain from your insurance plan. If you want a savings plan for yourself when you reach 55, you should be looking at savings plans which are fixed and pay out more upon maturity. You should also consider the term of your policy, that is when do you want to be paid your full sum assured? You may also decide that you want your cash at regular intervals given that you have projects in mind. Maybe you’ve finally bought a plot of land or you consider that your application will be finalised in the next five years. Some policies pay out every three years and some every five years. It is up to you to decide which one is best suited with your long-term plans. You can also go for an insurance plan which offers a combination of these benefits – cash-out every interval, long-term coverage and full sum assured at the end of the term.
- Coverage for your family
If you have just started a family, you may want to consider plans which will provide for them in case you are no longer able to provide for them. If you want a safety net for your family, then the longer the term of your policy, the longer the period of coverage for your family. A more long term plan also means a lower monthly premium. If you are the insured, you may also consider a policy which doubles the level of protection for your family. You may also consider to insure your children. In that way, whatever happens to you, we will continue to invest in them until they grow up (maturity date of the policy).
- Medical tests
The later you start, the greater the likelihood that your health will be considered as a factor before your policy is approved. It may happen that the underwriter will ask you to do a few medical tests such as chest x-ray and blood tests. These are standard tests to ensure that you are in good health and will be able to meet your policy obligations.
When you start your plan later, you can get the impression that your savings goals are much closer to you. Upon maturity, you will be paid the full sum assured or the remainder of the sum assured, depending on your chosen policy. So long as you observe the terms and conditions of your policy, a life insurance plan is a guaranteed payment to you or your family. Call us or one of our agents for more information.