Life insurance oddities
One of the things that everyone knows is that life insurance gets more expensive as you get older. It’s bound to, isn’t it? After all, each year that you get older, that’s one more year closer to booking your funeral, isn’t it?
Except that what “everyone knows” isn’t always correct and it isn’t in this case. Consider the extreme example: say you bought life insurance in advance for your child that kicked in the day of their birth. That would actually be quite expensive as there are heaps of things that can go wrong in a pregnancy and lots of things that can go wrong in the early years too. Thus insurance for the very young can be more expensive than those a little older.
Similar effects continue on throughout ones life. Thus we expect that car insurance will be more expensive for young drivers than older ones. A large part of that is down to the reckless attitude of some young drivers but there’s also the greater experience of older ones once they get over the reckless years. Also as you get older clearly you’re going to pass by the various childhood diseases. Less obviously, there’s an element of what’s effectively luck: older people get to that age partly because of sheer luck over the years.
Thus a life insurance lead needs to consider just what your life situation is to get the best value. Sometimes it’s far from obvious!
Copyright © 2008 by Arnold Stewart. All rights reserved.Popularity: 1% [?]
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Copyright © 2008-2010 by Arnold Stewart. All rights reserved.