Tick tock: when is the best time to get Life Insurance cover in place?

April 11 2018 5 min read Life Insurance

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Tick tock.

Do you hear that?

That’s the sound of your life getting shorter, second by second.

Okay, so that’s a bit dramatic – but it’s true.

To answer the heralded question in the blog title: now is the best time to get Life Insurance. Anything could happen between now and whenever it is that you actually get it sorted.

You could be hit by a bus or a lorry or a flying piece of concrete from a three-storey building.

Stranger things have happened.

Moral of the story: you need to get Life Insurance asap. Here’s why.

Life Insurance is cheaper when you’re younger and healthier

It’s a basic fact: Life Insurance (all insurances, really) is a game of risk. Ultimately, insurance is a business and sure, it’s a bit… contentious that someone somewhere once had the idea of putting monetary amounts on people’s life in exchange for cold, hard cash but it is useful when you die.

When you apply for insurance, you fill in a form and maybe a questionnaire about your health and fitness. If you smoke, your premium is gonna shoot up. If you’re obese, you’ll have to do a medical so your insurer can get your measurements and a better picture of your general health. If you’ve got a mild or moderate health condition, the insurer may or may not increase your premium as well.

So, if you’re fit and reasonably healthy, your application will sail through and you should get cover within a week.

Underwriters – the dudes in the dungeon who do the maths – will assess each case and determine your risk. If you’re low risk, you’re an easy take-on for the insurer. That’s also why Life Insurance is cheaper when you’re younger and healthier. The only time youth ever really stands in the way of insurance is for car insurance; the rest of the time, it’s a plus point.

In short: apply when you’re younger and pay significantly less for your cover. It’ll creep up when you hit 40 and get a lot more expensive post-50, so if you’re dawdling now and are in the age range of 35-49, scroll down to the end of this page and fill in the form or give me a call.

What kind of Life Insurance should I get?

So, generally there are two main types of Life Insurance: Whole Life and Term. The names are fairly prescriptive. Whole Life covers your whole life, though the premiums can be pricey. Term, then, is a bit more stripped back in that you are insured for a certain amount of time.

If you outlive your Term premium, the insurer keeps your premium. Essentially, they win the bet on your life, though it’s a bit less evil than it sounds. Both types of insurances have their pros and cons, but figuring out which is best depends on your situation.

Another way of looking at the type of Life Insurance you need is to consider how it’ll be paid out. Broadly, this is grouped in two: in a lump sum once you pass or in monthly instalments.

The options are:

  1. Leave your loved ones a lump sum, e.g. €750,000.
  2. Supply a monthly income each month i.e. think of it as providing your salary from beyond the grave.

Again, there are pros and cons to each type of payment.

However, if you think that your young ‘uns or your other half will blow through all your insurance dollar bills, the monthly income can be a solid plan. Jokes aside, the monthly income can be easier as it’s simpler to manage and your family won’t need to worry about investing the lump sum to get the best return. Plus, monthly income is much more inexpensive than lump cover – so there’s that.

To find out more about how much Life Insurance cover you need, I’ve given you quick ‘back of envelope’ maths in this blog post.

Life Insurance is probably cheaper than you think

Seriously.

I’m not just saying that because I’m a Life Insurance broker.

If you’re in reasonably good health, Life Insurance won’t cost you much more than your monthly Netflix subscription. When you think about it, you can pay that €9.99 a month so you can sit on your arse watching telly, or you could spend a few quid extra and protect your family.

Or you could just disown your entire family and cuddle your laptop as it plays Netflix. One or the other.

So one last time for the people in the back: the cost of Life Insurance comes down to four main factors: your health, your age, your occupation, and your family history. Tick those boxes without any major life-threatening illnesses or occupations and you’ll be surprised by how little Life Insurance actually costs.

If you’re still not 100 percent sure, have a read of my post about Life Insurance in Ireland and why you should use a broker.

It comes down to this: insurance corporations make their billions with snazzy marketing campaigns aimed at pulling at your heartstrings. Brokers like me give you the honest truth and get you the best deal. Otherwise, you’d go somewhere else.

And look: you don’t have to trust me. Just take a look at the 500 reviews I’ve got from my customers. You’ll notice there’s not a single stinker.

Over to you…

Life Insurance is never as complicated or as expensive as you think. If you’d like some help, please get in touch. We’ll go through your personal circumstances and draw up a plan that protects your family at a price you can afford.

Give me a call on 05793 20836 or complete the short form below.

Nick McGowan
LION.ie | Making life insurance

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The ‘40s were a different time. Obviously, the war was pretty contentious – but that’s a whole other topic and it’s not what I want to talk about today. (My post on war history is coming next week. )

So in 1946, Camels, the cigarette company, ran an advert around the tagline ‘More Doctors Smoke Camels’. It ran for several years and essentially peddled a pack of lies.
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