Should you buy insurance early to lock-in cheaper premiums?

Hi, just wondering if anyone here actually buy insurance early for the future as to save on future premiums. (meaning lock-in cheaper rates for higher coverage)
If so, what do you guys recommend? When would be a good age for me to do this? Is there an age where i would be considered "too young" for insurance- whereby the insurance becomes an unnecessary premium cost for me?

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Loh Tat Tian

20 Dec 2019

Founder at PolicyWoke (We Buy Insurance Policies)

No such thing as too young. Only opportunity cost should you have a better way to gain more.

my rule of thumb is to lock-in premiums before age 30 and pay till 65.

After 30, the premium cost spiral up quite fast.

Also, get sufficient insurance with higher coverage. Any reduction can be done easily. Top up is more difficult due to premiums going higher and insurability.

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Tan Li Xing

07 Dec 2019

Financial Consultant at Prudential Assurance Company (Singapore)

Hi Alfred,

I think in terms of insurance, age affects the premiums for most of the products, other the personal accident plans.

Insurance is something one gets more for wealth protection or rather protect your ability to get wealth, and to be honest... there isn't really an age where you are considered "too young", and in regards to being an unnecessary premium cost, that depends on whether you consider insurance a necessity or a liability.

1 guideline in regards to how much 1 should spend for insurance would be 10-15% of your income. Of course these are all guidelines, the best would still be to meet up with an agent so that your needs can be understood better and you will be recommended with the correct products that can meet both your needs and your budget.

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