I have been in the personal insurance industry for over 20 years now and it still amazes me the attitude of the average person towards life and disability insurance.
Most people don't see it as a neccessary insurance in fact over 70% of people I come across feel it is more important to have insurance on the family car than on themselves. It astounds me that people really believe living without a car would be more devestating on the family than living without their legs - go figure!
People never value their insurance until they need it and when they do they usually complain they should have had more (and I never say, I told you so). Young people of course believe they will live forever and most people don't start thinking of insurance until they start to feel their mortality.
In saying this I am often suprised when a 45+ customer refuses to want to give out medical information or submit to any mandatory medical tests. They can't understand why they just can't get the insurance with out all the fuss. They think that life insurers are not fair and can't understand that after being admitted to hospital with chest pains they are not a good risk. They often argue that they are the healthiest people they know and maybe they are, but if you build your house on a flood plain you will not get flood cover. If you are a young driver you pay more and so it is the same with life insurance.
The answer is simple, no insurer wants to take on a bad risk. The reality is once you are over 40 your risk for everything sky rockets, so the once 30 year old that could get insurance for less than $500 a year becomes the 45 year old who now has to pay $1,500 a year.
Life insurance and medical insurance are similar in that the earlier you opt in the cheaper it will be and the more likely you will be able to get insurance. A life insurance company doesn't have an obligation to provide you with insurance, it is a privilege not a right.
The best advice, when a young person starts their first job they should see a financial planner. Not only will they get a insurance portfolio that meets their needs they can get help with retirement and investment planning. The adviser should review their situation every year and make adjustments to cover etc as life events unfold. This is the best way to get personal insurance - so if you have a young person starting a new career in your family why not encourage them to start planning for their future now.
WL
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